When is Full Price the Right Price?
When is Full Price the Right Price?
Full Video Transcript Below
[00:00:00] Well, good afternoon, Southern Oregon and the world. Welcome to another edition of my weekly podcast. I'm Alice Lema broker John L. Scott here, beautiful Southern Oregon. And today we have a particularly fun edition of our podcast. Cause we were talking about when is full price, the right price.
[00:00:17] And this is not just for buyers. It's for sellers too I've got four realistic expectations to set here for buyers and sellers surrounding that whole full price thing. So before we get started, want to give you a quick minute to like our channel, subscribe to it. Please leave a comment, leave a note, ask a question, send it to your friends and family. It's a educational endevour. We're getting great questions, great feed back during the week. So it feels like it's helping. I'm so excited. And for sure people are starting to think more about how to be more strategic and more purposeful in their real estate life. So happy, happy for all that. But that's enoughof the sales pitch let's get on with the podcast.
[00:01:01] When is full price, the right price buyers and sellers can benefit by having four real estate expectations. So number one it's not just about supply and demand. It's about supplying demand of the property you are trying to purchase, or you are trying to sell.
[00:01:20] So yes, lots of us run the numbers and see what, what is going on in the neighborhood we want. Or how many houses we have to choose from, but it's really more, a matter of competing with what personally you're going to need to have happen. So this is why sometimes full price is the right price, regardless of whether your buying or selling. And it doesn't always have as much to do with supply and demand. It has to do with supply and demand of what you need to have happen. And if you're a buyer and you need to have a real specific something, then sometimes that's how you get it. And if you're selling, then sometimes you're not going to get full price because other factors weighing into the buyer's decisions. And we're going to talk about that next.
[00:02:08] So number two is just going back to basics, assessing the quantity of selection. So if you're buying, we all do this and thank goodness for all these great apps that we have now, the real estate apps, it really levels the playing field for the general public. And that's a good thing.
[00:02:24] Regular people should be able to do a lot of this analysis themselves so that they can fine tune their own expectations. So the quantity assessment just is your basic, how many houses, how many properties are available in the neighborhood I want in the price I want in the county I want. Whatever it is you're doing.
[00:02:44] But the sellers need to do this too, because it has a lot to do with whether you are realistically able to expect full price offers from the buyer pool that you are hoping to attract. So go ahead and start with your basic assessment. Know how many general properties you're competing with as a seller and how many general number of properties that you can expect to choose from as a buyer, because you know, if you're selling the buyers will absolutely be way more daring if they feel like they have choices.
[00:03:19] See, and that's what this whole podcast is about, is about. Do you have the choices you think you do, and if not, what you do. And if you do what you do about it. So I think the sellers need to be way more prepared for lower offers, especially with the market transitioning. And that's what number two is about is starting with the basic formula math question. What are we competing against as sellers? How many do we have to choose from as buyers?
[00:03:45] Okay. Number three, if it turns out you don't have a lot of properties to choose from as a buyer or you feel as a seller, you're not competing with that many properties. Then I think we want to take a step back. I bet that caught you by surprise. I want you to do another round of analysis. Alice's analysis, do another round. So if there's not enough homes to choose from as a buyer, just as an exercise, and I'm not saying you have to like actually go out and use this purchase strategy, but as a buyer, if you're not liking the number of choices you have, or the kind of choices you have and redo your criteria, set it for a higher price, just as an exercise.
[00:04:32] I'm not saying you're going to spend that money, but I want you to be informed so that you can make different decisions and have more choices. So reset the zip codes, reset the price, reset the size of the yard. Reset the bedrooms.
[00:04:45] Sometimes you can get an amazing property that actually has the space you need, but nobody's looking at. Because the apps are set for three bedrooms, kind of automatically go down into the two and one bedrooms, because as you know, a little bit of rehab can go a long way, but if you're selling, you want to do the same thing.
[00:05:04] You might be sitting there thinking I've got the Taj Mahal. Nobody has anything like it. Well maybe yes, maybe no. So again, sellers, do the exercise, change the criteria, open it up because the buyers are going to do that. If they listened to me, for sure, they're going to do that, but they're probably going to do that anyway at some point, just because everybody wants what they want and if they don't get what they want, then they try to figure out what else they can do to get what they want.
[00:05:34] So sellers, you need to be prepared for that. It doesn't hurt anything to expand. What you think you're competing against and have a little broader perspective, just so you're prepared. Okay. That's what these podcasts are all about. Making good decisions based on research and be prepared and getting what you need and getting what you want is always nice, too.
[00:05:55] Getting, what you need is first important. Okay. So that's number three. If you feel like they're not enough homes to choose from, or you don't, you're a seller and you don't think you're competing with very many properties and just change it up again as a research exercise.
[00:06:11] Number four is sometimes buyers feel that they have to have 17 things or they won't buy a house. And if that's real, if you've done all these analysis and research projects that I'm suggesting, and you still only have one or two properties a year that come on the market, and this is where I have to confess, I'm like that. I don't want, I want what I want and I only want it under certain circumstances or I'm not going to buy.
[00:06:49] And so if you are in that situation, it doesn't have to be an investment. It can be your primary residence too, it was not worth moving, unless you have ABCD and Z, then you need to be ready when that property comes on the market. You write over full price. Maybe a little bit, unless there's multiple offers and then a lot, and you just take it off the market and you don't fuss and you don't dicker and you don't over negotiate.
[00:07:19] If you only have one or two opportunities a year to get what you want, don't even blink. Just do it, get it off the market cause that's the goal. See this whole thing of negotiating and then chewing the fat with your friends and family that you are like the new Warren Buffet and you just like got the deal of the century or whatever.
[00:07:42] Or you sold at ridiculously high price. That's all about ego and it's fun if that really did happen, but we don't want to go in planning on that kind of a battle. If it's not necessary, you don't want to plan on creating all that negotiation. If it's not necessary, especially if it means you're going to lose the house you want, or are you going to lose the buyer you really wanted?
[00:08:06] So. Keep that in mind, that's when full price is absolutely the right price is when you just need what you need. You want what you want, you know, already that it only comes up a couple times a year, maybe less, then you gotta be ready all the time, every day to write that check or to write that offer. And yeah.
[00:08:30] And don't mess around ,the goal is to get the address off the market. Right. Okay. So those are my four realistic expectation setting guidelines for both buyers and sellers. I am Alice Lema, broker John L. Scott here in Southern Oregon. I'm a great buyer's agent. Great listing agent, great with investors, would really like to help you with your real estate.
[00:08:55] Please give me a call. It won't cost you anything to talk. My number is 541-301-7980 you can also text. Yeah. And just let me know how I can help otherwise. We'll see you again next week. Have a beautiful weekend. Bye now.