Hawaii Randy's Real Estate Opinions: Pricing War and a Beauty Contest

Pricing War and a Beauty Contest

                            Beauty ContestPricing War

Last week I attended the CRS Sell-a-bration in San Francisco.  The Sell-a-bration is a gathering of some of the top agents in the country.  We spent 3 days of classes, conference session with top speakers and some fun social mixers.  During the conference I picked up several pearls.  One that I truly liked was the phrase: "A Pricing War and a Beauty Contest."

When describing the sale process to a potential home seller, this phrase sums it up in the best direct way I can think of.

In most parts of the country we are in a buyer's market.  There is a good selection of inventory and prices are either flat or slipping depending on the area and type of property.  With that said, what will make you home sell before the others in your neighborhood?

You have to win the beauty contest plain and simple.  When the buyers walk in did you grab them?  If they liked what they saw did the price scare them off and send them down the street?  This is one of the hardest concepts for many sellers.  They have lived in this home.  Raised their family and have had so many great memories here.  Their friends and neighbors have all told them their home is worth so much more than all the others in the neighborhood.  Let me clear things up for you.  It is not!  Friends and family will tell you that to be supportive.  Neighbors have a conflict of interest.  They are hoping you will raise their property value by selling at a higher price.

To keep it simple, when you are getting your home ready for sale remember you are entering a Pricing War and  Beauty Contest.

 

--------------------------------------------------------------------------------------------------------

Randy L. Prothero, REALTOR®

Broker-in-Charge, ABR, AHWD, CRB, CRS, e-PRO, GRI, MRP, SFR

eXp Realty

Team Leader - "The Prothero Group"

Randy Prothero is well established as an expert in working with military / VA clients and first time home buyers.  His home seller's (listing) campaign is one of the most aggressive marketing programs in the area.  His luxury home listings sell faster and for more money.

Based out of Mililani, Hawaii. Randy services the island of Oahu (Honolulu County) Performs mediations and ombudsman services for the Board of Realtors.  To improve overall professionalism in his area Randy also offers classes for real estate agents. 

www.HawaiiRandy.comOahu (Honolulu County) Property Search  Hawaii Military Relocations

Comment balloon 36 commentsRandy Prothero • February 11 2009 11:33AM

Comments

Great analogy, Randy! It's sad and laughable at the same time.   :)

Randy Hooker - Dreamcatcher Realty - Arizona Real Estate

Posted by Randy Hooker, Gilbert, Chandler, Mesa, Queen Creek (Dreamcatcher Realty / Greater Phoenix Area) over 9 years ago

Wait...let me put my makeup on first...lol.

In any case, it IS the difference between selling and sitting...that's a FACT!

Posted by Celeste "SALLY" Cheeseman, (RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE (Century 21 Liberty Homes) over 9 years ago

Isn't it surprising that people will believe the 'backyard' professiona; most all times ofve the real professional.  That includes all facets of our lives!

Posted by William Feela, Realtor, Whispering Pines Realty 651-674-5999 No. (WHISPERING PINES REALTY) over 9 years ago

Randy - I've been using that description for at least a year, and it does get the point across to sellers.

Posted by Sharon Simms, St. Petersburg FL - CRS CIPS CLHMS RSPS (Coastal Properties Group International - Christie's International) over 9 years ago

Randy -we've had a few houses/sellers that it was almost impossible to get them to understand that. And one potential seller even said, "well we'll just have to find a buyer that appreciates the value" - this is when they wanted to overprice the house... - it did look good... but it doesn't justify the higher price. ~Rita

Posted by Brian Burke, Broker & Advising Expert-Denver Luxury Real Estate (Kenna Real Estate) over 9 years ago

Randy I had not heard "A Pricing War and a Beauty Contest." before, but it makes sense to me. 

And by the way if friends and family think that the house is such a steel at even a higher price, then why do they not buy it??? :) :) :)

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 9 years ago

Good phrase...It is a war! And it is a beauty contest....if you don't win the beauty part then the price better be darned good!

Posted by Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC, ... a small office, delivering big service! (Waters Realty of Brevard, LLC) over 9 years ago

It's really hard to win those beauty contests.  I really want to see the swimsuit competition.

Posted by John Walters, Licensed in Louisiana (Frank Rubi Real Estate) over 9 years ago

Remember the Chance or was it the Community Chest card in Monopoly?

You have won 2nd place in a beauty contest collect $10.

Second place sure doesn't pay much.

Posted by Brenda Harmon (Century 21 Beal, Inc College Station, Texas) over 9 years ago

Randy - I really liked that one.  I know I will be using it regularly.

Sally - Unfortunately too many sellers and agents are not getting it and they are not selling.

William - I have to overcome the damage caused by the amateur experts almost on a daily basis.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 9 years ago

Sharon - It is an effective phrase.

Rita - I always ask them to put themselves in the buyer's shoes.  Would you pay more when there are a lot of other homes available?

George - That is a good point.  We both know the answer.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 9 years ago

Gary - At the right price they will all sell.

John-:)

Brenda - In this case it may not pay at all.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 9 years ago

Hey Randy,

I can appreciate the depth of meaning of that phrase. Not only do many home sellers not appreciate it, but too many real estate agents as well. I can name a couple of local agents who take all the listings they can, never bother with any kind of presentation or staging, and let the dice fall where they may. They get many listings that way, but their closing ratio is horrendous. They get more listings, because they can brag about how many listings they have. You think sellers would be more concerned with how many they actually sell.

Posted by Michael S. Mackey, REALTOR ABR, CRS, GRI, RSPS (CENTURY 21 All Islands) over 9 years ago

I can think of a few that meet that description in my area.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 9 years ago

The wrinkled truth! Great analogy...very nice post!

Posted by Mara Hawks, Inactive-2012 REALTOR - Homes for Sale Auburn Real Estate, AL (First Realty Auburn ) over 9 years ago

I heard that at a C21 CHristmas party in 2007. (All Islands did not sponsor a party in 2008, budget constraints). I had already forgotten about it. Great analogy. Aloha from Kauai

Posted by Ronnie Margolis, Kauai Realtor - CDPE, ABR, RA - On Top of the Aloh (KW Kauai) about 9 years ago

Mara - I definitely like it and am using it.

Ronnie - C21 Liberty Homes had our Christmas Party at Honolulu Country Club.  Hopefully I will see you at the awards luncheon tomorrow.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) about 9 years ago

Randy,

You won't see me. I left C21 in November and am working with Hawaii Life. We have the #1 trafficked website for Hawaii and it's a fantastic marketing tool. You can search the whole state from our site. Check it our sometime, www.hawaiilife.com. I trust you'll be getting some awards tomorrow or you wouldn't be going so, CONGRATULATIONS! You deserve it all!

Posted by Ronnie Margolis, Kauai Realtor - CDPE, ABR, RA - On Top of the Aloh (KW Kauai) about 9 years ago

Ronnie - Good luck with the move.  I am sure I am getting some award, but honestly do not know which one.  I never looked at the number required.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) about 9 years ago

Doesn't matter. At very least, you'll get a nice lunch. See ya' round...

Posted by Ronnie Margolis, Kauai Realtor - CDPE, ABR, RA - On Top of the Aloh (KW Kauai) about 9 years ago

Ronnie - The lunch was OK.  LOL

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) about 9 years ago

And your centurion level was.....

Posted by Ronnie Margolis, Kauai Realtor - CDPE, ABR, RA - On Top of the Aloh (KW Kauai) about 9 years ago

Ron - I got the Masters Emerald.  There were not many Centurions given this year.  The room was about 1/2 as big as last time.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) about 9 years ago

State of the market... too be expected. Congrats on your Masters Emerald. Probably had something like that too had i stayed the course.

Posted by Ronnie Margolis, Kauai Realtor - CDPE, ABR, RA - On Top of the Aloh (KW Kauai) about 9 years ago

Hey Randy, we met in SF at the conferance and you got me into Active Rain. I am not quite ready to thank you just yet, i am not very good with this mouse. I also thought the cheap and cute referances were very good as well as the line I heard about stageing. Spend a little up front on stageing and it will amount to much less than that first price reduction. These are facts we all know but it helps to hear the spoken word. Congratulations on your Emerald...

Posted by Pam and Terry Kennedy (Kennedy Properties) about 9 years ago

Pam & Terry - Thank you, it was a tough year to win a sales award.  I am working even harder and smarter this year.  That CRS Sell-a-bration is what I need to get me motivated early in the year.  I sure hope we have one next year.

It will take time to fully see the benefit of Active Rain.  I have been doing it a little over 2 years and the last 6 months or so is when I really began to feel the full impact of it.  It is liuke a snow ball it keeps building with time and effort.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) about 9 years ago

Ronnie - Thank you. I was surprised to see how few awards they gave this year.  I was on track for the Centurion the first half of the year, but it really slowed the 2nd half.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) about 9 years ago

It really takes a lot of discipline to be present in AR regularly. It's nice to know you are reaping some benefits from your hundreds of thousands of points, and made a lot of nice acquaintences along the way too.

Posted by Ronnie Margolis, Kauai Realtor - CDPE, ABR, RA - On Top of the Aloh (KW Kauai) about 9 years ago

Ronnie - I am so glad I got on AR early.  I have made many great acquaintances here.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) about 9 years ago

When did AR really get going? Have you purchased an outside blog for $18? Do you think it's a good value? See ya soon...

Posted by Ronnie Margolis, Kauai Realtor - CDPE, ABR, RA - On Top of the Aloh (KW Kauai) about 9 years ago

Aloha Ronnie - I have an outside blog:  www.HawaiiRandy.net

 

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) about 9 years ago

Randy, pricing seems to be winning out a lot these days in my neck of the woods.  People just aren't willing to pay more even if the home is a beauty contest winner.  In some ways, I think that is a good thing, as people are not maximizing their mortgage payment and being a little more conservative.  Also, people aren't willing to travel to the more rural areas to buy a home these days either, no matter what it looks like and is priced at.  Those areas are getting killed right now.

Posted by Troy Erickson, Your Chandler, Ahwatukee, and East Valley Realtor (Diverse Solutions Realty www.ChandlerRealEstate.weebly.com) about 9 years ago

Troy, is the market getting close to bottom in AZ in your opinion or still trending downward?

Posted by Ronnie Margolis, Kauai Realtor - CDPE, ABR, RA - On Top of the Aloh (KW Kauai) about 9 years ago

Randy, do you pay 18 a month for the outside blog?

Posted by Ronnie Margolis, Kauai Realtor - CDPE, ABR, RA - On Top of the Aloh (KW Kauai) about 9 years ago

Troy - I guess the fear of gas prices jumping again has them moving closer in.

Ronnie - I have the outside blog.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) about 9 years ago

Dude,

You must be super busy. I see the Cheese overtook you. You probably have a new angle on something even cooler. LOL Keep up the good work!

Posted by Ronnie Margolis, Kauai Realtor - CDPE, ABR, RA - On Top of the Aloh (KW Kauai) about 9 years ago

This blog does not allow anonymous comments