This past weekend, the Today Show spotlighted an interesting segment titled "The Science of Selling Real Estate." As science was a part of my "past life," prior to real estate state, this title held particular fascination. The focus was an interview with the Redfin CEO, Glenn Kelman who shared several "scientific" insights about Selling Real Estate. According to the segment's introduction, ...Seller's should forget EVERYTHING their real estate agent had ever told them.
Kelman who was being interviewed by Meredith Vieira clarifies at the beginning of the segment that Redfin (presumably the Redfin programmers) are computer scientists NOT sales people. The segment's stated aim was to separate the Sales Voodoo from the True Real Estate Data. So, without further ado, we now compare the "Science" according to Redfin and the LOCAL Real Estate Facts in Grand Rapids, Michigan according to Grand Rapids, Michigan Real Estate Broker, Lola Audu.
1. Don't Over-Price the home. This will create a longer marketing time and result in price reductions of up to 88% vs only a 97% reduction if the home is priced right. Kelman went on to say that real estate agents try to get home owners to sell as HIGH as possible. Huh???
Grand Rapids, Michigan Real Estate Facts: The penalty for over-pricing in Grand Rapids starts at about 25% and can go as high as almost 35% or more. Pricing the home is so critically important that the battle is getting home owners to be realistic in ACCEPTING the market price NOT Pricing a home above the market! Homes that were priced correctly did get about 96% ~ 97% of the List Price in Grand Rapids as well.
2. Be Web Saavy About Pricing Your Home. Kelman indicates that the web is where all the buyers are. Pricing Thresholds online increase in bracket of about $25,000 ~$50,000. Price ranges above the threshold can prevent your home from being seen by potential home buyers who won't look $1 more. According to Redfin, you can loose 7% of your audience.
Grand Rapids, Michigan Real Estate Facts: In Grand Rapids, Michigan...the thresholds are much smaller. Our thresholds are between $5,000 ~ $10,000 price adjustments.
3. Debut Your Home on Friday. Click Here to continue Reading...
Photo courtesy of White African's photo stream on flickr. Glenn Kelman is seated front and center.
Copyright 2007 Audu Real Estate All Rights Reserved
Lola Audu, is the Designated Broker & Owner of Audu Real Estate. Our company specializes in helping people buy and sell homes in the greater Grand Rapids, West Michigan area. You can contact us via e-mail @ info@auduhomes.com or by phone at 616-791-0511. Thanks for visiting our blog. Here are links to some of our most popular posts for you to enjoy!
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Lola, its a shame the unsuspecting public will fall for this crapola disguised as science. Another case of total media irresponsibility. Shouldn't we demand equal time to set the facts straight? Wonderful post. I am flagging it for a feature!
Ginger
My hubby is a computer "geek". That is his chosen career. He won't even begin to comment on the real estate market when asked by people who know what my career his. His answer "Here's my wifes card, ask her.."
What bothers me more than Glen Kelmans "interview" is the fact that NBC didn't someone who is in the trenches in our industry on the show at the same time to present their facts and opinions. Balance in the media? Nahh..not when it can affect ratings.
I don't take "fringe" Internet companies seriously.
However, what I found disturbing was that the NAR featured that interview in the December 14th Realtor Magazine online issue.
Kris, the News Media is increasingly concerned primarily about entertainment value. That's why it's important for us to speak up when they try to disguise as entertainment, a discussion which is serious business and should not be distorted to make a misguided point or two. Thanks for your comment. Smart hubby...:)
Lola,
This particular interview made my skin crawl. I watched it and was SO disappointed that once again the main stream media chose to promote an opinion by someone that is a self-proclaimed scientist, not a Realtor, and promote fear and panic.
The public generally does not take into account that Real Estate prices are determined by local factors. What is the 'norm' in California certainly does not apply to Ohio. And what is the 'norm' in Michigan certainly differs from Texas. It's simply unfair and prejudicial to go on national television and attempt to spread fear and panic with statements that are generalizations based on Mr. Kelman's local area. That would be like me going to Seattle and expecting to find a 2,000 sq ft home for $180K. In Toledo that's not hard to do - and it would be in a nice neighborhood. In Seattle it may be possible, too, but it may (don't know - haven't been to Seattle in 35 years) be in a less than desirable neighborhood and need many repairs. My point? I don't know that market, so I can't say.
Perhaps Mr. Kelman should clarify where his information came from and what market he is using to base his assumptions on. But wait --- that would put a hole in his babble. Never mind....
I'm disappointed that NAR has not made inroads to appear on one of these shows and debunk these 'facts' as purported by Mr. Kelman.
Lola, Nice wordpress blog! "The assertions in this piece were so wildly bizarre that I felt compelled to respond." I'm so glad you did. Was there a NAR rebuttle or are they afraid?
Not taking foreclosures into account? Maybe there are none on the west coast.
This fall, the average sale to original price in my area was 85 percent. There were some lakefront homes that came in at less than 60 percent.