Ann Arbor and all of Washtenaw County continues to feel the effects of the Pfizer move to Conn. These homes are so undervalued that buyers are snapping them up quickly. For instance, I have a transaction closing in August that the sellers paid 525,000 for last year and we are closing at 425,000. That is a great opportunity for my buyers and many other home buyers in Washtenaw County.
The effects of this will take years to overcome and eventually these will be sold and off the market. Then sellers in those neighborhoods will be looking at appraisals coming in low and most appraisers will not know that it was a Pfizer Relocation house. We Realtors will have to be on our toes to be able to show the appraisers that because it was such a low sales price, the sellers were actually able to get back at up to 100,000. in their " loss on sale" clause.
Pfizer is offering their employees up to 100,000 loss on sale as an incentive to relocate. So ultimately the sellers did not lose anything. Prudential Relocation does not want these homes in their inventory so they are being dumped at incredible values.
Average List Price Average Sale Price
List vs Sales Price
All data is compiled by a great company Big House Data, located in Ann Arbor Michigan, aka, our very own Todd Waller. The static's are compliled from the MLS data from the Ann Arbor Area Board of Realtors.
I send out a a 10 page report monthly to my sellers each for condo's residential, and Washtenaw County. In any market but especially one that is slow and homes are staying on the market a long time, it is important to keep your sellers informed.
Sellers will tend to think it is "just their house" or worse yet " your not doing your job" in getting it sold.
The market is what the market is, we as professionals can't control the market, but we do have a responsibility to keep our sellers up to date on the conditons of that market. The biggest complaint I get when I am the 2nd Realtor in to list a home is that the sellers feel their Realtor never called them or kept them up to date.
How do you stay in touch with your clients ? Weekly, Monthly? What kind of things do you do ?
Wow!! Can you tell me "HOW" you made those graphs?!?
I stay in touch with my clients a minimum of once per month...some twice!
Missy - It will take some diligence on the part of agents to know which of these homes were Pfizer homes.
Your graphs are awesome - I looked up the company to see if they offer this data for Indy and they don't. I stay in touch with newsletters and market updates, just no graphs :(
Stephanie, trust me I don't do the graphs, Todd Wallers company does them.
Cyndee, Allyssa is doing much better tonight.
Teri, the graphs and numbers are what I go over in my pre-list appointments. You can't fight numbers !
Susie, contact ToddWaller@BigHouseData.com
Paula, if you can get you data, Todd might be able to work something out.
Missy,
Very nice post with excellent graphics. Thanks for reminding us of the importance of client contact.
Fran
Missy,
The big corporate moves usually have such a negative economic impact on an area and sometimes it takes year to recovery. Glad to see you are thinking about how to deal with the appraisers in the future regarding these relo homes. I communicate with my seller based on their needs, some twice a month others twice a week. I email reports which includes all sorts of stats.
Fran, client's love to hear from it. But, it is so hard to call, when nothing is happening on their home.
Jennifer, thanks for sharing what you do.
Thesa, :)
Missy, I do hate that, well...nothing's happening call. I send them market reports and call them periodically when another house goes on the market similar to theirs. Seinding them their competition at least once a month is an effective tool as well.
Sounds like there are some real bargains to be had in Ann Arbor currently! I can't imagine having to sell a house for $100K less than the price I paid!!! OUCH!
Whoa!
Missy, thanks for the plug for Big House Data!
I would recommend talking to my business partner, Dave. He can be reached at dave[at]bighousedata.com. We are currently focused on Washtenaw County in Michigan, and are looking to expand. So, let's talk!
Thanks for the kind words regarding the charts!
Missy
I think you have to touch base once a week, even if you just mail or email.
As to the Pfizer homes, it sounds like there will be so many it really wont matter if a sale is a Pfizer or not. They will all be affected eventually.
Still praying for your daughter.
Missy,
What are sellers who don't have the Pfizer plan doing? It has to be hard on those who need to move but don't work for Pfizer.
Todd, your the best !!
Terry, thanks for still praying.
Rita, it is soooooooooooooo hard for the sellers who aren't Pfizer employees and will be for many years.
Missy, this was a very interesting post. Todd's graphics are fantastic. They really make the case very clearly about what is happening in the market. Over here in Grand Rapids, we're seeing significant discounts, but not at the level you are describing here. I am bookmarking this post. Thanks.
*Also, very thankful to hear Allysa is doing better. We continue to pray for complete healing.