Tuesday, June 21, 2011

Head to Head Competition

Yes, I have a competitive streak. Tonight I took a few moments to examine how things have gone for the two top firms working in Piedmont since the beginning of the year.

We've had 52 successful transactions (or 104 "sides," as each has a buyer and a seller). Of the 52 homes, just over 70% were marketed by Pacific Union or Grubb--54% of these by Pacific Union, and 45% by Grubb.

Across the board, the Pacific Union-marketed homes garnered a higher price per square foot ($503/sf) than did the Grubb Co. listings ($488/sf)--this could be because the Pacific Union homes were nicer, larger, and so on.

A more interesting figure, however, is the final price relative to the original asking price: How appropriately was the home priced to begin with, how well did the listing agent gauge true market value, and/or how convincingly did s/he convey that true market to the seller prior to going to market?

About 60% of the Grubb listings sold below the original asking price, while 60% of the Pacific Union listings sold above the original asking price. Typically, homes that sell above the asking price garner competition, and go into contract promptly after the second open house, while those closing below the asking price stayed on the market for a longer time.

Which group would you prefer to be in?

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