A “Dutch Auction” or “Traditional Brokerage Model” is defined by the marketing of a property at a perceived elevated price range and working the price downward over time until buyer and seller agree upon market value. A sale can be accomplished in a very short period of time if demand is greater than supply or the property has a location, functional utility, condition or a combination that is simply in demand. The traditional approach to selling real estate is extremely effective in price ranges where local incomes support the typical selling prices and supply and demand are in alignment. The key to each approach is the ease of determining market value. Comparable sales are easy to find making tools like Zillow, Realtor.com and realtor CMA’s very accurate.
Opportunity can be found in those price ranges and locations where sales are few and far between as agents and AVM’s simply do not have current data allowing them to be accurate. Seaport Real Estate Group utilizes a proprietary model called Market Pulse which employs sales dating back as far as the MLS allows, in a specific location, with real comparables. This approach justifies current values based on the historic performance of a specific neighborhood, subdivision, waterfront community, street or location defined by map search in the MLS composed of comparable properties. We are able to see if a property is priced well, underpriced, or trying to break records based on the performance of sales in a specific location.
Not only are we able to help sellers make intelligent business decisions, but we as professionals are able to reduce risk, lower costs, and act in an advisory capacity that elevates the real estate profession as a whole.
The costs of holding the property while trying to sell the property can be pivotal in the decision-making process. If the data shows that similar properties take an extended period of time to sell in that price range then the property may be a good option to auction.