It seems like every couple of days I get a call from a potential seller. With the marketing trends we have seen over the last two years it is more a buyer's or investor's market than we have seen in a while. Seller's that succeed in selling are motivated, they are willing to listen to their agent and price their home correctly, and make their home standout above the competition.
Many of the sellers calling me at this time had their home on the market with other agents last year. They are frustrated that their home did not sell, that the listing agent never showed their home and they tend to blame the other agent.
While researching the past history of the home, the old listings and county records the handwriting is on the wall and very easy to see why their home did not sell. It all comes down to pricing.
Today this was really driven home when a family called me to list their home. They had their home listed last year with a "local agent." Even if we were in seller's market the home had been listed about $75,000 higher than it would have sold for.
Now that another year has gone by we are looking at a price almost $100,000 lower than the price it was listed for. These sellers felt they had lost money since "the other agent" had over priced the home the sellers felt their home was worth the higher amount. This was never the case; the home actually has not lost any value, even with this buyer's market we are currently in.
Will they list the home for the true value of the home and what it stands a chance for selling? I hope so, today after meeting with them I did not take the listing, I gave them the cold hard facts of what a 20 year old frame built home without a master and a small bedroom will truly sell. I explained my marketing plan, told them what buyers are looking for and what their competition has that they do not and what they have that the competition does not. I agreed to list the property for a price that shocked them but nothing more, asked them to take my listing presentation, marketing plan and paperwork home, to think about it and let me know tomorrow.
After I left them, I just wanted to drive to the other agent's office and tell him exactly what I thought of what he had done to these wonderful people. The truly thought they had a chance of selling for a much higher price, they believed him, trusted him and were taken back with the truth.
If you plan to sell this year, please take a good look at your competing properties what more do you have to offer, price your home accordingly. Many agents will price the home where you set the price, knowing full well you do not stand a chance of receiving an offer and even if you did that the home will never appraise which will kill the deal. Competition is steep, but home are selling, allow your agent to give you the cold hard facts and price the home below your closest competitor.
One of the things I tell sellers to help get the point across is this: You CAN overprice it and possibly get a buyer in and possibly get an offer, but it will never get past the appraiser. Is it worth a year on the market waiting for the "possibility" only to have a purchase fall through? Not in my book.
Good luck Thesa. Please let us know if you get the listing and how things turn out.
Thesa,
I just got a listing last night...the lady was a former neighbor who had listed with another agent based on a friends referral...it was a mess and the buyers never closed...the agent then refused to remove the listing from the MLS until the seller threatened to file a complaint and her broker wouldn't return calls...she called me and I told her she would have to reposition the home at the right price or I couldn't help her...she obliged and now has to list it 100,000 lower based on the market. She has been searching for me for 3 weeks according to her and was sorry she mad an error in judgement.
Thesa--About 40% of my listings last year were relists. A couple were significantly overpriced by agents working outside their area. Both homes are now under contract. What was maddening to me on these were that the directions to the homes were incorrect for almost a year! I don't understand how that could happen. I have a couple of new relists and though priced right in the previous listing the photographs were HORRIBLE. With 80-90% of buyers weeding through listings on the internet before making home visits, the photos need to be awesome!
It's the Santa Clause Buyer syndrome.
Sellers believe that Santa is going to deliver a cash buyer who won't want an appraisal and will love the house and won't care about the price because they have more money than common sense.
When was the last time you had a cash buyer who didn't know what they were doing???
Sad. Sad. Overpriced listing and incompetent listing agents are holding the real estate recovery back and it's costing everyone dearly.
Hi Thesa,
Looks like we were on the same page! Its a shame that we have to go out there and clean up the damage because others agents don't tell the truth. I hope you get this listing these people sound like they need your help. :)
Thesa,
Very well put. On almost EVERY listing appointment the sellers want more for the house than they can possibly get. They have all kinds of excuses, too. They owe too much, they NEED to net a certain number, etc. It is our job to let them know that none of that matters to the buyers. AND the buyers have the stage right now. Thanks for a great post.
Some sellers just won't or can't listen when explain that the market will tell them what the price of their house should be. Whether it's the emotional investment in their home, or the need to take a certain amount of money out of the deal, so often they want to fly in the face of reason. Then the house sits, and they wonder why or blame the agent for not trying hard enough to sell it.