Welcome to San Diego Blog | May 14, 2010
Downtown San Diego Real Estate Ask Price vs. Sales price
As human nature would have it, people generally have preconceived ideas of “how things things are”. We all have our opinions and sometimes we don’t really grasp the reality of a given market, but we think we have a good hold on how things should be. I’ll be the first one to admit I am in this group. It’s funny because when I go to buy a car or a computer, I show up as a consumer and I have my “ideas” of what I want, what I’m going to pay, and what I’m going to walk out of the store with. When I am in consumer mode, or buying mode, I usually prepare myself for the sales pitch and then go out with my armor on so I don’t lose my focus and buy bigger, better, and more than I set out to buy. Do I always succeed with my game plan? Absolutely not, but it makes me feel good at least going in with a strategy and I think that many consumers can relate to this.
The same principals above apply to selling Real Estate Downtown San Diego. It’s funny because part of my job is really quite hilarious. I generally receive a phone call from a person that is interested in selling their downtown San Diego condo and I ask some specific questions to familiarize myself with property and the buyer so I can do focussed research for the appointment we set up. Once I have done the research and have a thorough undestanding of the subject property, its competition, recent similar sales and the neighborhood as a whole, I prepare a presentation to help deliver the information that paints a picture of the reality of the marketplace.
The Seller of Downtown San Diego Property
When I show up to meet with a potential client, I have all of my information organized and ready to present, but the first thing I need to do is ask questions and listen to identify what preconceived ideas the seller may have. Is their home worth $1.5m to them when buyer’s would suggest that it is only worth $1.1m? The funny part is that it is my job to focus on listening so I can understand the armor the seller has put up just like I do when I walk into Best Buy or the Mercedes Benz dealership. I crack up because I am on the other side of the equation, but I will probably never stop putting on my armour….yes, I am stubborn!
As the appointment goes on, I try to understand the seller’s motivation for wanting to sell, how much they perceive their home should sell for, how long they believe it will take. Then, I try to figure out a way to explain and present to them whether today’s buyer agrees with them or not. It doesn’t matter what I think of thier downtown San Diego property because I probably won’t be the one buying this particular property. It all hinges off consumer behavior; I do a study to see what the most recent consumers were willing to pay for a like property and then share my findings. Consumer behavior is always changing so it can go up or down and often without warning or reason.
Looking at Downtown San Diego Property Ask vs Sales Price
In the above chart, we can see the statistics for February 12th through May 12th for Asking price versus selling price. This illustrates consumer behavior and what willing and able buyers are willing to pay for a downtown San Diego property they like enough to make an offer to purchase. It does not show how many times the seller’s had to drop their price or re-list at a lower price to achieve the final sale. It does however set a general idea of the percentage range of the asking price that one could expect to receive. Remember, with averages, some of these were ridiculously high and some where ridiculously low.
The most important piece is the initial market position with which you market your property from day one! Studies from the National Association of Realtors show that seller’s that sell their homes faster end up selling for higher sales prices.
If you are interested in selling your home and want to see what consumers are now paying for homes similar to yours, give us a call and we’ll do the research for you. 619-309-8011