Latest / The Jon Sanchez Show / Over Priced And Over Looked: When Should A Home Seller Reduce Their Price?
Transcript
- Jon G. Sanchez: Good Thursday afternoon, Welcome to the John Sanchez Show on News Talk 780 KOH. Pleasure to be with you. And a pleasure to be with one of our two co-hosts. But hey, we only need one. We only Aaron Clark, Edge Realty: That's right. Jon G. Sanchez: need one. And especially when it's Aaron Clark of Hedge Reality. We only need one. How are you, buddy? You you like this topic, huh? You like this one? Yeah. Yeah. Aaron Clark, Edge Realty: I'm good. Great topic today, by the way. I like it. Yeah, I do. I do. It's kind of the the hot topic out there right now with all of the the people that I talk to that are selling, buying, whatever. You know, they're super curious like how this whole thing transpires and why it's becoming such a crazy yeah, yeah, yeah, for sure. Yeah. We're seeing a lot of those price Jon G. Sanchez: Are are are people starting to talk a little bit more? Okay. Okay. Yeah. Well, Aaron Clark, Edge Realty: reductions. Jon G. Sanchez: yep, yep. And that's what we're gonna talk about, folks. We we've got a lot of things to cover today. We had a heck of a day as far as economic reports. I'm gonna fly through those. I don't want to bore everybody, but they were important. we had some major earnings numbers going on in the after hour session today. Amazon and Intel. boy, it's almost a replay, Aaron, of yesterday. I obviously you weren't on the show, but we saw Google just selling off massively in the after-hour session yesterday after their earnings report because of what? AI overspend, negative cash flow. Hmm. Or have we heard this before? stock never recovered today, by the way. Google didn't. but we got the same problem with Amazon. Terrible, terrible numbers reported today, quite unusual. and then same with Intel. it's not as bad as as Amazon's numbers, you know, per se, but They were not good. And so we're watching both of those stocks very close in the after hours. So tell you what those earnings numbers are and what the stocks are doing, and we'll check the futures here in a little bit after they get warmed up a bit, and they just opened a few months ago, about nine minutes ago. So a lot of things, but we're gonna we're gonna get to our topic today and what Aaron's alluding to it is a really interesting topic. You may not know this, but more than one in five homes listed right now, and I'm talking on a national basis, carry a price reduction. But the biggest mistake may be waiting. Too long to make that price reduction. So today, our dear friend Aaron Clark of Edge Reality is going to explain what the first two weeks on the market reveal. That's right, a two-week window to test things. When a seller should adjust, and why one meaningful reduction may cost far less than chasing buyers downwards for the next few months. Aaron, I'm I'm really excited to learn from you on this one, too, because like you said, it's a it's an issue that's going on right now. And I think It's gonna be an issue that's gonna be with us for a while because yeah, rates have edged down a little bit here recently and the Fed of course left rates and changed yesterday. But, you know, this seven percent north on a on a mortgage, thirty year mortgages will cover in Dwight's absence. it's not going anywhere. You know, it may fluctuate a few basis points up or down, but it's not going anywhere. Aaron Clark, Edge Realty: Yeah, absolutely. And and if you look at this market segment where you're not seeing too much of this topic happening, Jon G. Sanchez: Mm-hmm. Aaron Clark, Edge Realty: it's gonna be in that entry level, under eight hundred thousand dollar price range. Above that, that medium price the the medium between the low and the high, you're seeing it at its most, at its peak. And then that higher price range, Jon G. Sanchez: No kidding. Aaron Clark, Edge Realty: you're still you're seeing it, but not quite as much. It's something like I believe the stat that I was reading the other day was seventy one percent of homes listed in the eight hundred to one point two million dollar price range have had a price reduction. Yeah. Jon G. Sanchez: I is that the realtor because I'm gonna blame the realtor, is that the realtor being greedy? Meaning, hey, let's throw some some crazy number out there and if they bite, great. If not, yeah, I know, I know. Aaron Clark, Edge Realty: It's such a good question. Jon G. Sanchez: Or or or is it just market forces that are that are weakening? Aaron Clark, Edge Realty: so here's the thing about realtors, this this is why they're worth their weight in gold. And and I'm trying not to just sound biased here, but the reality of it Jon G. Sanchez: Yeah. Aaron Clark, Edge Realty: is is, we navigate, we're the center spoke of the wheel. We navigate everything. And and what people don't Jon G. Sanchez: Yes. Yes. Aaron Clark, Edge Realty: realize is sometimes a seller isn't going to believe what we say or even the stats, even the proof, even the numbers, everything that we show them, a seller just doesn't agree because Their neighbor, Tom down the street, who has the same model match, sold his house Jon G. Sanchez: Yeah. Aaron Clark, Edge Realty: four months ago for X doll. Therefore, their home has to be worth that. And so Jon G. Sanchez: Right. Aaron Clark, Edge Realty: a lot of times we have to convince them through them experiencing what we were trying to express to them at the beginning. So you'll see a lot of inventory where it gets put on the market, and then after a week or two, you see that price reduction, as opposed to properties that are coming on from the the get-go at the price they should be. Jon G. Sanchez: Mm-hmm. Okay. Aaron Clark, Edge Realty: And that's what I call the the convincing time period. that's when we get gather so Jon G. Sanchez: Yeah. Aaron Clark, Edge Realty: much data that we can take that information Jon G. Sanchez: Right. Aaron Clark, Edge Realty: and we can prove concept, prove point, prove what we're saying, explain the data, and now they have a real understanding. So a lot of my buyers, when we're looking at brand new homes that hit the market and I already know they're overpriced, and they go, Hey, let's go Jon G. Sanchez: Right. Right. Aaron Clark, Edge Realty: see them. I know it's slightly out of our price range. I could probably get a good deal. I go, no, because a seller hasn't figured it out yet. We need to wait till that first Jon G. Sanchez: Mm. Aaron Clark, Edge Realty: price reduction because that's when they know. because they're not getting showings, they're not doing whatever. They're not gonna do it w Jon G. Sanchez: Okay. Smart, smart. Aaron Clark, Edge Realty: on day three because they already overpriced their home when they listed it. Of course they're not gonna come down on that Jon G. Sanchez: Right. Mm-hmm. Mm-hmm. Aaron Clark, Edge Realty: price right away. Jon G. Sanchez: Right. Right. Wow. I never thought about it from from the buyer's perspective, the strategy behind that. That's that's genius on your part. I like that. I like that. All right. So the magical two-week window. I we I should retitle the show, The Magical Two Week Window. Aaron Clark, Edge Realty: Ha ha. Jon G. Sanchez: All right, my friend. Well, you sit back and relax for a minute. Let me grab the horns here and get this ball rolling because again, we had a lot of things happen today. Let's let's let's talk about the regular session. again, as I discussed on the show yesterday, folks, if you missed it, please pick up the podcast because we we had some problems with Google, you know, in the again in the after hour session today. And that negativity just continued forward into a lot of areas of tech. We ended up losing 365 on the Nasdaq, 1.38% loss. close was 26,184. Now the Dow 133. We were down much worse than that at some peak. periods. well over 200. but again came back a little bit. That was a quarter percent loss. S P for the day down 24 points or 0.30%. I will again the headlines this came across NASDAQ 100 futures are falling because of Amazon and Intel. So this like I predicted a few seconds ago. Yeah it's probably gonna be a similar type of day tomorrow. we are seeing a lot of concern a lot of rotation so on so forth. again I give I've been saying this for a couple months This is a house of cards in the world of AI. It's great. We love it. We all use it. Everything's there. But it is, there's too much money. And when you get the likes, Aaron, of of a, of an an alphabet yesterday going negative nine point something billion dollars in cash flow. And for those of you that don't know, I I I was gonna mention this yesterday and I forgot. So negative cash flow is just as it says, they are spending more than what's coming in for the quarter. Right. And and yes, we deal with billions when we're dealing with these large companies, but it is never, never a good sign when a company goes negative cash flow. And I'll just give you a little hint before I get to the Amazon story. Same thing happened with Amazon. So this is again just emphasizing and reinforcing what these companies are doing. They are spending, spending, spending, spending. There's not a return yet, right? If they wouldn't be negative cash flow if they were getting the return. And the I again, I am not gonna sit here and by any means criticize Amazon or Google, Lord knows they are more than successful. But from an investor's standpoint, the street does not like seeing that. On top of that, they don't like seeing, you know, the negative earnings results, or not negative, but the the lower earnings results versus Wall Street's estimates. We saw that with Google, and again, you're gonna hear about that in a second with Amazon. So as I've said all along, the way you're gonna know if this AI bubble is gonna burst is you've gotta watch these hyperscalers. The Amazon's the the the Googles and Metas and so on and so forth. You gotta watch them and see what their stocks are doing because if people lose faith in those big names with the massive balance sheets, all these little names like the core weaves and right on down the line, they're gonna be impacted whether they did anything wrong or not. They're just gonna kinda get sucked into the whirlpool and and begin to go down. So let me get over or get the the economic data wrapped up first of all because again it was a really, really busy day and it all came at five thirty this morning. So It was interesting. So we had the first read for third quarter GDP showed a economy growing at about 3.4 percent. That was a bit above expectation, month over month, up about 2.2 percent. Personal income, it increased two tenths of a percent month over month. September got a little bit of a bump up showing personal income up three tenths of a percent. They adjusted that. Okay, so remember Wall Street likes when we spend more than we make. So personal income, as I said, up two tenths of a percent. We go to the personal spending, the sister report, our personal spending was up a half a percent month over month. Wall Street loves that, even though it doesn't make a lot of sense, but they do because we're out there spending and that'll help corporate earnings numbers. Okay, so we got that. Then we move over to the Fed's favorite measure of inflation, the PCE prices, the personal consumption expenditure, up a half a percent. prior was only up three tenths of a percent. these are September's numbers. Strip out food and energy up three tenths of a percent. And you know, Aaron, these were again month over month, and no one pays attention. But the the PCE, the headline number was up 3.6% year over year. So this is the criticism that Kevin Morris and the rest of the Fed is under right now by Wall Street. Yes, Wall Street wanted a rate increase yesterday. They left things unchanged, and now you have this data saying, look at your target of inflation. Fed is two percent. Now you're at three point six percent. You're a hundred and what, a hundred and sixty basis points away from your target, you need to raise interest rates. And they didn't do that. So that that really upset people. So again, year over year up three point six percent. Get to the core, strip out food and energy, PCE was up three point one percent year over year. So again, bit hotter numbers. The market didn't really have that much of a negative reaction today, Aaron, to that. I was worried about a few other things. Labor Front was strong. again, the weekly claims down only 1,000 filings to 194,000 individuals filing the state unemployment benefit for the first time. And then continuing claims down 21,000 people to 1,701,000. So still very, very strong on the labor market. And again, that's kind of holding us up along with a few other areas of the market. But overall, inflation definitely an issue. we come back, I'll tell you what oil, gold, ten-year treasury, and thirty-year mortgage did in Dwight's absence. And then we're going to get into our topic. Overpriced and overlook. When should a home seller reduce their price? With our dear friend Aaron Clark of Agility. Welcome back to the John Sanchez Show on New Stock 780 KOH with Mr. Aaron Clark of Agility Dwight has the afternoon off. All right, so once again, here's how we finished. We lost 365 on the Nasdaq, a 1.38% loss. Dow down 133 quarter percent, and the SP lower by 24.30%. Aaron, this is like a deja vu of yesterday. I mean, the the just check the futures now that we've got what 21 minutes under our belt. almost identical to yesterday at this point. Nasdaq futures are down three hundred and ninety points right now. So they, again, it's very, very early. Well now four hundred and three. still very early, but I think people are gonna go, Well, you know, this is what happened after Google reported and look at what happened to the Nasdaq today, meaning, you know, and so investors may be going, you know what? I don't wanna be a part of this thing anymore. And you know, if we hold there, you know, you're gonna be talking seven, eight hundred point loss in two days on the Nasdaq. So Very early to tell. But anyways, let's hit the let's hit the commodity side. We just Aaron and I were talking during the break. I was full disclosure. And and I I was telling Aaron, it's like, you I've been doing this a long, long time, and I've been through so many different market cycles. And what gets me airing is we never learn. We never learn. every time we go through a major market correction and we look back and say, what did we learn? I always try to do that. What did we learn from that one? And every telltale sign. Credit default swaps, which are basically the insurance that that investors, institutions purchase on a corporate bond. Skyrocketing. That's always a telltale sign. major names coming down. That's beginning now with all the everybody I just mentioned a moment ago. I mean, I could go, I could spend the entire show going down the list of reasons. but you know what? Here's something else that no one's paying attention to. And this is really bizarre. And I and I've shared this, you know, my personal life with all of you. Yeah, I I I go to bed very early between seven and eight o'clock is my goal. So I'll lay down and I'll I'll watch my iPad for 15, 20 minutes and then I'm I'm out. because I get up at 2 30 in the morning. And Aaron, there's been, you know, I I watch YouTube. That's all I do. It's just a no-brainer type of thing. Aaron, there's been a ton of stories in the just in the last three days about some significant world events that are potentially coming. And I'm not talking, you know, the your typical scare tactics. I don't know, folks, if you've been watching this or not, but we have as of yesterday, there were 12 countries around the world, Japan included, UK included, etc., all of a sudden telling their citizens, stock up. You need at least UK said you need at least three days of food and water. Japan came out yesterday and said you need at least seven days of food and water. We had our Pentagon run by Mr. Higgseth, of course, come out over the weekend and gave a a an order to all of the US bases that you are to figure out a way to be self-sustainable for I believe the period is 30 days, meaning you're off the US energy grid, you can't get water, from the city municipality, all these things. I've never seen this happen. And I I don't think it's a fluke that all these countries would just come out, right? And and say this. So what do they know? Is there something that's gonna happen after the midterm elections? As Trump says, that's gonna be the the telltale sign, if he's gonna, escalate this war with Iran. I don't know. But you you can't tell me, I mean, that is not covered anywhere on all the financial, you know, journals and things, but you can't tell me that's not weighing on investors' minds. That there's something strange going on in the economy. Do you agree? And in the world, you know. Aaron Clark, Edge Realty: Yeah, I I actually saw I've been watching a couple of things all day today about that. And yeah, it's a little bit concerning because we haven't really seen anything like that. At the same time, I mean, like, Jon G. Sanchez: Have ya? Really? Yeah. It is. No. Aaron Clark, Edge Realty: you know, I mean, be prepared, but you also gotta live your life, right? And not live in fear. But but yeah, like Jon G. Sanchez: Of course, of course. Right. Aaron Clark, Edge Realty: I I it's like, okay, well, what could it be? Is it war related? Is it hack related? Is it, you know, who knows? Yeah. Yeah, yeah. Jon G. Sanchez: Right. Right. That's yeah. Well they're saying it could be all of it. It could be all of it. So yeah, I I don't know. I don't know. And it's not making the news as much as it should be, but there's there's been a lot of hacks. Well, yesterday, of course, that the the was it Department of Defense or Homeland's I think it was Homeland Security said that they were breached about a month ago and something like 200 name two excuse me, 200,000 names Of ICE agents and border Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez: patrols, et cetera, got hacked. Name where they live, personal information, you name it. That was all a hack. And banks are getting hit all the time now. And then they this no one's even saying anything, but I I see it going on. So it's bizarre. It's crazy times that we're in. Just be careful, folks. That's all I say. Just be careful, be careful. All right, let's get to the Intel and Amazon numbers. Let's get Amazon out of the way. So let me tell you. first of all, what the stock is doing after hours. All right. So normal session, we finished down ten dollars and eighty-one cents, four and a quarter percent loss to two forty-three seventy-nine. Right now, Amazon's trading down fifteen dollars and sixty-nine cents. Excuse me, fifteen dollars and sixty-nine cents, six point four four percent loss to two hundred and twenty-eight dollars and ten cents. So Aaron, yeah, you know, we're we're talking north of twenty-six dollars loss as we sit right now. And if again, if it follows like Google did. it's probably gonna sell off a little bit more once we get into the international markets overnight. you know, 'cause no one's gonna you know, yeah, you can trade a little bit in after hours, but no one of any substance is gonna come in and s gobble this thing up. there it goes. Now down sixteen dollars and nineteen cents just moved. Aaron Clark, Edge Realty: Now is that retail income related or was it investment in technology related? Jon G. Sanchez: So let's yeah, thank you. So let's let's get to the numbers because it's I got three minutes, I think, and get it done here. So let's hit the hit the top line numbers, Aaron. Great question. So let's go to earnings per share. They made a buck eighty nine a share. Estimates a dollar ninety-six. Revenue, two hundred and one or excuse me, two two hundred and one point nine four billion. Estimates two hundred and two point three one billion. So now we've missed on bottom line, we've missed on top line. Amazon Web Services. Did beat a little bit, 45.98 billion versus estimates of 45.29 billion. Advertising revenue was down 19.6 4 billion. Estimates were 20.82 billion. company held steady on their capital expenditure forecast. Remember, folks, I told you coming into this earnings season, this is what the street's paying attention to. Yeah, we pay attention to earnings per share on revenue, but we're watching very closely capital expenditure. Well, how much are these companies spending in AI? So Amazon said they're holding steady on their capital expenditure forecast for the rest of this year, saying they continue to expect to spend a total of about $220 billion this year. $220 billion. Now let's put it in perspective, right? So they made I'll round it up $202 billion in the quarter. So, you know, we're talking what, a quarter and a half of of Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez: of revenue just going into capital expenditure, right? With no immediate return. let's see, Andy Jesse, the CEO, said on the call with investors that the company expects to quote, spend meaningfully more, meaningfully more next year. And that Amazon, quote, has a clear line of sight to attractive financial returns. So we all know, of course, if you've followed Amazon, you know, since their inception in the late 80s, you know, inception as far as publicly traded, this is a company, and it even though you know they have a new leadership now. versus Jeff Bezos. Jassy, he he's it's I think it's in the Amazon culture. We don't really care. We've got so much money and a strong balance sheet. We don't really care, you know, what happens today. We're Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez: it's kind of like Asian investors, they're looking 10, 15, 20, 100 years down the road. And Amazon kind of has that theory and and they have proven the street wrong. You know, street gets all freaked out like we're seeing right now. And then who ends up winning? Amazon does, right? So they'll spend a bunch of money now because like he said, we here we have a line of sight of attractive financial returns. the aggressive AI spending is eat eaten into Amazon's cash flow. Okay, so remember I told you almost 10 billion negative cash flow for Google yesterday or alphabet. Amazon posted negative free cash flow for the second consecutive quarter. Outflow, Aaron, $42.4 billion of negative cash flow Aaron Clark, Edge Realty: Ha ha ha. Jon G. Sanchez: for the trailing 12 months. An increase, here's what gets better. An increase of 386% year over year. Aaron Clark, Edge Realty: Is Jon G. Sanchez: 386% increase in negative cash flow. The last quarter, the company reported negative free cash flow of only 7.6 billion. So again, 7.6 billion the previous quarter, now 42.4 billion negative cash flow. The company said the shortfall was shortfall was primarily due to an increase in purchases of property and equipment as a result of AI investments. Then they go on and on. But you get you get the picture. Whole bunch of spending. Let me squeeze in Intel real quick so we can come back and start fresh with Aaron. here's what the stock's doing. Regular session, we finished down three dollars and forty-six cents, three point six two percent to ninety-two seven. right now in the after hours, it's plunging, now down nineteen dollars and sixty-three cents. Aaron, 21.32% loss in the after hour session on Intel. 21.32. Now trading at $72.44 a share. Now you see why the Nasdaq futures are down. but as far as the you know the the the earnings side, it was I gotta be honest with you, it was it was really somewhat of a of a mixed report. It wasn't all that bad, wasn't all that good, but it wasn't wasn't one that really gave investors kind of warm and fuzzy. They made 52 cents a share, nice speed over the 40 cents expectation. Rev came in slightly better, 16.51 billion, estimate 16.5 billion. Revenue was up 21% to 13.7 billion a year earlier. or up from that 13.7 billion. revenue in client computing and physical AI group fell 5%. Not a good sign there from the same quarter a year ago to 8.1 billion. That missed estimates. Even though data center AI revenue jumped 78% to 7.3 billion, global PC shipments declined 4% in the second quarter from a year earlier due to soaring costs for memory and other components. for the current quarter, Intel is expected adjusted earnings of about 25 cents on revenue. This gets too nitty gritty there. But you get the point. Not a not a good number at all. Not a good number at all. And so right now, here's your update on the Nasdaq 100 features. When we came back from break roughly 15 minutes ago, we were just down 400, now down 438, Aaron. Based upon this. All right. There's so many things to talk about, but we're gonna switch over over, put our real estate hat on. Ready for that, Mr. Clark? Aaron Clark, Edge Realty: yeah. Jon G. Sanchez: Overpriced and overlooked. Hey, look at that. Overpriced. With the theme we're talking about with Wall Street right now. Overpriced and Aaron Clark, Edge Realty: Ha ha. Jon G. Sanchez: overlooked. When should a home seller reduce the price? Mr. Clark will give us all of his wonderful advice on that one. Welcome back to the John Sanchez show on News Talk 780 KOH with Aaron Clark of Edge Reality Dwight has the afternoon off. Once again, Nasdaq finished down 365. Dow lost 133 in the SP down 24. And we're down 459 right now on the Nasdaq futures due to the weak earnings numbers out of Amazon and out of Intel that I mentioned. Hey, quick reminder I was just sharing this with Aaron. I I keep forgetting I've been yelled at, but we have a brand new website for you. And the domain is the John Sanchez Show. And remember, my first name is spelled J O N. So the John Sanchez Show. If you missed any of the live shows, so we you no longer have to go find me on YouTube or Spotify or anything. We have this so automated that literally within about 15 20 minutes after the show is over, I'll should I tell them how we do it, Eric? Aaron Clark, Edge Realty: Yeah. Might as well. Jon G. Sanchez: We we actually have an AI agent, one of our AI agents comes in. And takes the edited show and puts it right on our website. So if you you go there, you you can go, you know, up at the top, you'll see podcast, right? And it'll have the latest episodes. And again, it gets up there really, really fast. But all of my previous episodes, you have the option to listen to that episode on Spotify. you just click on our button here for take right to Spotify, listen on Apple, or watch on YouTube. So you can do it all now right from our website. And also you can listen live. We have a listen live button that'll take you right to the KOH website. And so if you're out there and you don't have a good radio signal or something, but you have good internet, hey, by all means stream us. So we're kind of everywhere now, Aaron, and and a lot of lot of great things. There's great picture of you and Corey and Dwight and my buddies. There's our reviews, there's all kinds of stuff on there. So again, it's the John Sanchez show. keep you up to date no matter where you are, what time of the day it is, et cetera. So real excited about that. Okay, Aaron, let's get to our topic today. Overpriced and overlooked. When should a home seller reduce the price? All right. You had a great opening segment where you said, look, it we have this two-week window where we're testing things out. So now let's just kind of start with that real basic premise. Where where do you come up with the two weeks? Is this a personal strategy you have? Is this something that is common in the real estate industry? Kind of talk to me about that. Aaron Clark, Edge Realty: It's one of those organic timelines, I think, that evolved over the years. you know, it's it's interesting when I'm talking to a seller, I always try to explain to them, look, you know, I'm looking at past data and I'm looking at current data, which is gonna be how many actives, how many pendings, how long market, you know, how long a property sat on the market to go into contract, how long it took to close, all those different things. But then we're compiling all that information, we're overlaying that web on top of their home and saying, okay, based upon all these statistics, all the data we've collected, we're going to make an educated guess as to where we need to price, what it's going to take, what kind of marketing we need to do, all of these different things. And then we put it on the market, and then we wait to see if we're right or not. And the reality of it is. Jon G. Sanchez: Let let the market tell. Yeah. Aaron Clark, Edge Realty: Yeah, the market will will tell you. Well, in the past, we talk about this all the time on the show, you know, since two thousand ten, eleven, we have only been an appreciating market in all fronts. Everything housing has been going up. You couldn't lose. You you put as long as you didn't overprice a home from what the neighbor sold for, it was gonna sell for that or more. And so much of the work went into the negotiating and the CYA Jon G. Sanchez: Uh-huh. Aaron Clark, Edge Realty: stuff for the seller or buyer, right? Now it's very different. The market's slow. Certain properties are moving, certain are not, rates are high, buyers are super selective. They're trying to figure out how to benefit the most when they're coming into purchase. So we have to change the strategy a little bit to appeal to those buyers that are on the market in the best way possible. And in order to do that, we have to take that information I just described, put it on the market, and then we need to see if that response from the buyer Is being attracted in what to do with that information. Corey and I talk about all this all the time. If you put a home on the pro if you put a home on the market and you get no showings, you're overpriced and people don't like your house. If we get your home on the market and people come and look at it and then they don't write any offers, then there's something about the property they probably don't like because the price didn't scare them away to come and see it. And then if we put it on the Jon G. Sanchez: Mm-hmm. Right. Aaron Clark, Edge Realty: market, we get lots of showings, lots of offers, we are priced. Excellente, yeah. So that's that's Jon G. Sanchez: Right there. Right there. Aaron Clark, Edge Realty: the data we're analyzing. Jon G. Sanchez: So we actually need to break that data down a little bit further. So level one, somewhat we touched on, but I want you to go into just a bit more detail. Level one, online activity. This is where you're going to be looking at the listing views, saves and favorites, shares. there are so there there is so much data, of course, that many people don't know that that a good technology person can gather. you can get into where the IP address came from. There's a lot of things that'll people have no idea that you can get off of a off a website inquiry, the click-through activity, et cetera. So expand on that. Aaron Clark, Edge Realty: Yeah, so we'll we'll look at the online data, see how many clicks, profile views, saves, et cetera. what we're analyzing there is we're looking to see, you know, if if price point is hitting buyer search criteria. So a lot of times the old way of pricing things, old way, I don't know if it's really old or not, but we used Jon G. Sanchez: Yeah. Aaron Clark, Edge Realty: to try to be like instead of it seven hundred thousand, we would try to price it six ninety nine, 'cause it looked better, right? Well, yeah, but Jon G. Sanchez: Correct. Right. Aaron Clark, Edge Realty: The problem is you miss one filter base. So people will filter by 700, not 699. So they go, Aaron, send me a list Jon G. Sanchez: Sure, sure. Aaron Clark, Edge Realty: of everything that's $700,000 or less, or send me everything with a minimum of $700. They don't go $699. So we lose an entire Jon G. Sanchez: Right. Aaron Clark, Edge Realty: entire market split on that. So we're going to analyze price point when we list online and we can see what kind of reaction we're getting. If the photographs are getting the the clicks on them that they should get. I if let's say we have a property that the main selling point is there's a really cool pool in the backyard and it's located in an area that doesn't really have a lot of pools, just throwing that out there, then we probably need to feature the pool in the first few photos in the carousel so people can see that that's the uniqueness of the property to get those clicks. So different things like that are all being analyzed on. Jon G. Sanchez: And and folks, just to we don't have time to get into this. Maybe another show, Aaron, maybe next week or something. This whole data analysis, we're just talking the website. We're not even talking social media. Aaron Clark, Edge Realty: Just the website. No. Jon G. Sanchez: Social media is a whole nother animal as far as testing things out, so on and so forth. All right, let's go quickly to level two, the showing activity. Many showings, but no offers. Aaron Clark, Edge Realty: Yeah, so again, we hit on this earlier. For getting a lot of showings but no offers, that's where it's really important to follow up with showing feedback. as soon as I have a a listing that's has a showing schedule in a on it, I always contact that agent, tell them a few highlighted features about the property to pique their interest, because they just got a call from their buyer saying, Hey, I want to see XYZ Jon G. Sanchez: Right. Aaron Clark, Edge Realty: house. Chances are the agent hasn't even had a chance to pull up the property because they've been out and about. So they're just scheduling a showing and moving on. So I give them some key features so that as soon as they walk in, they'll just regurgitate what I'm saying. and then after that I find out, how was the how was the showing? What did your client like about it, dislike about it, whatever. And so we can take that that feedback from the showing and analyze it and then determine if we need to make a change. if I if I have a property where people are frustrated because there's not enough bathrooms, for example, well, we're not gonna fix that. We're gonna have to adjust price. If I have one where they can't Jon G. Sanchez: Yes. Right. Aaron Clark, Edge Realty: stand the fact that the kids' bedrooms are all painted painted purple with pink polka dots, we can paint that for really cheap and fix it in less than twenty Jon G. Sanchez: Sure. Aaron Clark, Edge Realty: four hours. So that's the information that we need to gather. Lots of showings. Why? Yeah. Jon G. Sanchez: Love it. Love it. That's that's invaluable data, by the way. That's invaluable data. Yep. let's squeeze in before break. Level three, the offers. Aaron Clark, Edge Realty: Yeah. So if we're again getting the activity, people are calling, people are looking at it, we're getting the feedback, people are showing it, and we're not getting offers, we know why. If we're getting offers, now we know we're priced right and we need to be competitive on how our structure of a counter or what we're gonna change or edit to make the offer look enticing to a buyer, but net more dollars to the seller if I'm representing the seller, obviously, right? So we're gonna Jon G. Sanchez: Right. Aaron Clark, Edge Realty: analyze that data. And then if we have multiple offers, the strategy changes. The goal is always for a seller, you want multiple offers because you can leverage them. Jon G. Sanchez: Right. There you go. All right. We come back, Aaron. Great job. When we come back, we'll talk about the initial pricing mistake. Right. You you've all been sellers probably. Aaron, let's start high. We can always come down. I want to have Aaron Clark, Edge Realty: Yeah. Jon G. Sanchez: plenty of room to negotiate. I need a certain amount for the next house. My neighbor, as Aaron said, my neighbor just sold for this price. I want that price. Actually, I want a little bit more. I put a hundred thousand into this property. I need to get that money back. The buyer can always make an offer. And for lastly, I am not going to give away this property, Aaron. I am not going to give it away. Aaron Clark, Edge Realty: Yeah. I hear every one of those. Jon G. Sanchez: Let you just I know you do. They're your notes. We'll talk about it when we come back. Welcome back to the John Sanchez show on Newstock 780QH great topic. overpriced and overlook. When should a home seller reduce the price? Aaron, let's get to our third point. Chasing the market down. What do you mean by that? Aaron Clark, Edge Realty: Yeah, so, we kind of draw the the visual example here of, you know, if you throw a ball down a hill and then you run and try to chase it, you'll never catch it. But if you're halfway down the hill and someone throws a ball down the hill, then you can put yourself in the right position to catch it. It's the same as the market. So when you're chasing the market down Jon G. Sanchez: Okay. Interesting. Aaron Clark, Edge Realty: and you keep falling behind, and then the next day you go, okay, well, I'm gonna drop it to, you know, yesterday's price. Now once again, you're still overpriced. So it's important that you're not chasing the market down, you're getting ahead of it. Because the reality of it is, we've talked about this a million times, right? Supply and demand. If if the property is on the market Jon G. Sanchez: Yes. Aaron Clark, Edge Realty: and you have buyers out there that are actually looking and your home is a good price, they're gonna flock to it and they're gonna write an offer. They're not gonna go, wow, it's so cheap. I'm not buying that. You know, they're gonna Jon G. Sanchez: Mm-hmm. Aaron Clark, Edge Realty: write an offer and now you're in a place to at least negotiate. Doesn't mean you have to take it necessarily, but it's something that we can actually work. Jon G. Sanchez: Here's a question I've always wanted to ask you. When you decide or when you advise your seller that, all right, we're past the two weeks, we've done everything right, we're just not getting the offers we want. I recommend that we reduce, I'll pick a figure, 25,000. And then a couple weeks later, still nothing. No takers, no offers, no nothing. Mr. Seller, I recommend we decrease by another whatever, 20,000. Now, if you were the competitor, in other words, if you were representing buyers, Aaron, are you looking for that type of strategy to show panic where you're seeing regular, constant reductions in a price and you're like, that seller's in trouble? Aaron Clark, Edge Realty: That's that's actually a really good question. So I I think that people that have regular adjustments are people that I know that I'm not going to be able to take maximum advantage of on behalf of a buyer because they're moving with the market. They're paying attention, they're making adjustments, and because they just made an adjustment, it makes it harder to come in and say make another one by accepting our lower offer or massive concessions. Jon G. Sanchez: Okay. never looked at it that way. Aaron Clark, Edge Realty: But if somebody is doing it in a way where they're chasing the market and they're delaying and they're doing a $2,000 price reduction, nothing substantial and nothing that matters. They're just trying to get more attention to their listing. I know that they're way out and they're running the wrong pat they're running the wrong pattern. So it's just like football. It's like when you predict the other team's play exactly and you crush them. It's the same concept. When we see the pattern is wrong, we can come in and take advantage of that. So it's really important that on the front end, the pattern is done to the ability that we know what we're doing and not that we're just chasing the market. That's that's the failure. Jon G. Sanchez: Will you still use this two week strategy let's say after four weeks, right? So two weeks go by, you end up adjusting for all the reasons. Will you wait another two weeks and then discuss with your seller all right, we need to do another adjustment? Aaron Clark, Edge Realty: Yeah, absolutely. And we go in from the very moment when I have the conversation with a buyer or with a seller. Listen, this is the strategy, this is the approach. We're taking past data. We're making assumptions. We're going to see how it goes, et cetera. If I think that our process isn't going to meet the need of what the seller's trying to accomplish, meaning they're not going to get the sales price, they're not going to get the timing, whatever, then I'm going to tell them, hey, let's not sell. Let's wait. Maybe this isn't the right season or the right timing. Let's wait for rates to come down and it's more of a seller's market because you're not trying to buy. But if you're trying to buy and we sell a little low, you're gonna buy low. You're gonna make that up on the compensating side, right? So it's not always the best time to just sell. Jon G. Sanchez: Right, right. And of course there could be as and like you always mentioned, there could be a life changing event, a death, a divorce, job change where Aaron Clark, Edge Realty: Sure, that's very different. Yep. Jon G. Sanchez: they don't have much choice. what about increments? Is there a percentage that you use you know, you you kinda use the example of 25,000. is there a percentage like it's if it's a million dollar house, we're gonna do 10%, so a hundred thousand or five percent, you know, fifty thousand. How do you strategize that? Aaron Clark, Edge Realty: It's going to be driven by market data. So if the Jon G. Sanchez: Mm. Aaron Clark, Edge Realty: best w example I can use to illustrate it is if we look at condos because there's so many of the exact same, we're going to look at the data around us. If there was 10 listed when we went on and there's still 10 listed and all of them have dropped five to ten thousand and none of them have moved, then we're way out of the price point. We we need to come down. So yeah, the the strategy is going to be price and price only. If we're in the same situation and now instead of 10, there's five and one of them is us and we're still there. Then I need to look at the five that sold, find out why they sold. Was it position in the community? Was it the condition? Was it they were more modernized compared to mine, et cetera? And then the adjustment can maybe be a little tweak of multiple things. Maybe a little price, maybe a little concession, maybe a little sprucing up on the inside and spending a little money there. Because if we're going to drop the price $10,000, well, what could we do with $2,000 to make that condo look nice and change a couple photos? So it it it's a case by case. Jon G. Sanchez: Right. Right. Yeah. Well, I like your point too. Okay, instead of dropping ten thousand, you go, Hey Mr. Seller, i I told you we needed to repaint, let's spend two thousand to repaint and maybe we can then attract somebody and keep that ten thousand dollars that we were gonna reduce. Aaron Clark, Edge Realty: Exactly. And and what's interesting is a seller hears, let's paint for five thousand and they go, my gosh, that's so much money, but it's not much when you're reducing. Jon G. Sanchez: Yeah. Yeah. No, no, you know, that's hard money spent. Wrap us up. What's your final advice? Aaron Clark, Edge Realty: My final advice is if it's not the right time, don't do it. If it is, then do your homework. Make sure that you're listening to your agent. They know the market more than anybody. Six seven three sixty seven Jon G. Sanchez: Beautiful. Phone number, my friend. Quickly. Aaron Clark, Edge Realty: hundred. Jon G. Sanchez: Great job as always. Aaron Clark of Edge Reality. God bless everybody. We'll see you tomorrow on the John Sanchez show.