We've always taken pricing very seriously and Austin's boom market has presented interesting challenges when determining what to offer on properties. Almost all properties go to multiple offers & many have offers 20% to 30% (or more) over the list price. Sold comparables more than 1-2 months old are no longer relevant (unless adjusted) and gauging the current trajectory of the market is as important as analyzing sold comps. Because of the substantial current buyer demand & the extremely low inventory, every situation is unique & we have many factors to take into account.
In Order to Help You Determine Your Offer Price, We Do the Following
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Conduct Frequent Industry Surveys
When the market began shifting dramatically, we began sending monthly industry polls to our peers. At the beginning of every month, we send a market survey to 5000+ producing agents in the Austin Metro and ask them what they see & expect in different price ranges. This gives us high-level data as to what we should expect in these sub-markets. We keep the latest survey results updated at this link. -
Prioritize Sold Data 60-90 Days Old
The market is rapidly appreciating, which means that properties closed 60+ days ago are much less relevant. Because of this, we prioritize sold comps that have closed in the past 60 days. Ideally, we're able to find one or more great comps within this window. If we can't, then we will look to less relevant comps or properties that have closed in the past 6 months and make adjustments. -
Look at Pending Listings & Leverage Relationships
The gold standard is a relevant comp that has gone under contract in the past few weeks but has not yet closed. The problem is that the sales price isn't yet reported. We'll leverage our relationships (and goodwill) with our peers and we can almost always find out the sales price, or a very close range, through a conversation. We're able to gain other insights as to the multiple offer environment, showing patterns, etc during this conversation. -
Rely on Strong Communication & Relationships
Ultimately, the market sets the price, and Austin's boom market has exemplified this entirely. After we've determined how the subject property is priced based on all available data, it's as important to know what the buyer demand is for that property. We stay in close contact with the listing agent to find out how strong the buyer demand is. Many times, we're able to leverage relationships to learn "roundabout" what the high offer prices are so that we can decide if it's worth competing or not. Though we don't always get this info, we always make every best effort. -
Consider Your Motivation & Put Your Best Foot Forward
After we've researched the property in depth, and presented it to you, the only person that can decide what it's worth to you...is you. We can help you understand at what price it will likely appraise, give the best estimate as to other offers, & help you understand market trajectory. The price that you want to offer is ultimately the price that you're comfortable with. You should offer a price and terms that are legitimately your best foot forward and that you will be very happy with if you win. Alternatively, you want to offer a price that is no higher than you're willing to pay, so if another buyer offers a higher price, you will still sleep well.
Ready To Get Started?
We'd love to talk with you! Any discussion is purely confidential. If you'd like to chat with any of our current agents about their experiences, we'd also love to set that up.
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