By Alex Seroff, ESQ. | Listing Specialist
With local real estate being one of the favorite topics of conversation in Silicon Valley, it is no surprise that sellers are well aware of the seasonality of the market and optimal timing. However, when working with sellers to determine the listing date for their home, DeLeon Realty does not stop strategizing there.
Due to the unique position of having a large market share coupled with a team approach—where information is shared, not carefully guarded—DeLeon Realty is able to utilize knowledge of upcoming listings in order to ensure all come on the market at the optimal time.
While some listing agents just put a home on the market almost immediately after they obtain a listing to get that commission as soon as possible, other agents will develop a timeline with their sellers as to when is ideal to put a home on the market. DeLeon Realty considers many factors in determining when to list a home, including how long it will take to prepare the home, develop marketing materials, and when the sellers need to have their proceeds.
One final and important consideration to be made is when other similar homes are going to be listed. Only a company with a team approach that encourages information sharing is able to offer a large enough database of upcoming listings to be useful. DeLeon Realty is that company. There are several large brokerages in the area, but all others consist of independent contractors who are not motivated to share information amongst each other.
With the knowledge of a large percentage of upcoming listings, DeLeon Realty can easily determine which home should go first on the market when it has two listings located very close by. The idea is that the first house will be the one that is most likely to have a home-run result, thus generating the most offers and setting a strong comparable for the second home. Since only one set of buyers wins the home, the rest can be easily redirected to the similar second home nearby.
Not all of these buyers would have been initially interested in the second home; however, due to their offers on the first home, they have now developed emotional attachments to that location, and thus are much more likely to make offers on the second property. The result is a higher number of offers than would be expected on the second home, and thus a higher sales price.
Less intuitively, this approach is also beneficial for the more desirable first home as well because the second home would set a lower comparable, which would hold down the bidding on the more desirable home. DeLeon Realty has two homes coming soon on the same street in the South of El Monte neighborhood of Los Altos, and we encourage readers to watch if these properties will prove this idea true once again.
In regard to market timing, optimization of when to list similar homes within close proximity is the most important strategic advantage gained by listing with DeLeon Realty. However, a large market share also allows the firm to drive more traffic to a home by listing many homes that are different in characteristics, statistics, and pricing— but are within the same city—all on the same week.
This creates a lot of buzz for DeLeon Realty’s open houses that weekend, which essentially become stops along an informal tour of the city. The additional visitors themselves will likely not be in the market for every home they visit, but they may realize it could be a perfect fit for a relative, friend, or coworker. If just one of those people makes an offer, as a result of capitalizing on this advantage unique to DeLeon Realty, that offer can help push the sales price higher than it otherwise would have been.
Perhaps the largest benefit sellers gain from DeLeon Realty’s size and business model is our ability to redirect buyers from other, more expensive areas. For example, imagine a couple who wants to buy a four-bedroom home in Midtown of Palo Alto, and they find a perfect home listed by DeLeon Realty. Unfortunately, the price gets bid up to over $4 million, which is their limit. These buyers may be the perfect candidates for an equally nice home in Los Altos or Menlo Park that may sell for only $3.5 million, and we can redirect them to this alternative.
The optimization of market timing is an advantage one can obtain effectively only from DeLeon Realty. With our firm’s newest innovation being implemented, the benefit of this optimization is poised to increase greatly as DeLeon Realty gains market share. This growth will allow a larger database of upcoming listings to be considered when determining the best day to put otherwise competing homes on the market.