I was only kidding!
In my last post I was discussing the high prices of some units that have come onto the market recently, in particular, I mentioned #617 11th. This is one of the iconic brick townhomes on 11th. When it sold at $1,850,000 I jokingly said “ Next thing you know some silly agent will price one of these units for $2,000,000!” Well guess what? While not in the MLS, I got an email for a pocket listing for #625 and it is priced at…… $2,100,000! Are you kidding me? As I mentioned before, let’s look back just 13 months ago when #621 sold for $1,390,000. This is a 51% increase! The market is NOT up 51%! Now I have no connection to the sellers of the combined #633/#637 unit priced at $2,950,000, but that price just got way more attractive! Especially when you consider the higher level of finishes and design that it has compared to #625.
With all joking aside, this market is a little scary to me. While very different than what we saw in the last bubble, it still is not the type of market you want to see. I have made many comments about the pricing of the Cosmopolitan. It is priced higher than Seattle’s Insignia Towers( and because of our job markets, this NEVER happens), and yet it is now 80% sold. Many things are not making sense in this market. This is why I feel a little nervous about the market. As a buyer, it pays to be a little cautious and fight for the very best deal. Be ready to walk away from the negotiating table if it just doesn’t feel right. If the market were to turn right now, those paying a premium WILL get hammered, no question! In the higher end of the market, even with low inventory, it pays to be smart with your money. As a seller, I always push for a high price for my seller with the idea of not being too greedy. Also, when pushing for a higher price, make sure you have some reasonable comps to support your pricing because after all, it still has to appraise!
As a seller, keep this in mind, ANY agent can sell your place…but at what price? I have always been a strong believer that better marketing, and more marketing brings in a higher sales price. If you are selling (and asking for a premium price), you should have PREMIUM condo marketing to help you get that higher price! That means great photos, great print material, good videos and all done in a classy, well done format. If an agent is not going to do these things at a minimum, you should look for another agent that will. Will an agent sell a condo with bad photos? Yes! It happens all the time. But don’t you wonder if the photos were better and you had better overall marketing, it would have driven more buyers to the property which in turn helps you get a higher price? Good marketing works! It works for Coca Cola, it works for Apple and it works for selling real estate!