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WHY HAVEN"T YOU SOLD MY HOUSE????

It is a question we hear frequently, especially in a Buyers Market.

Most sellers do not like the answer:LOWER YOUR PRICE!!. In most cases that is the only thing left to do. We can't change the location of the house. However, the seller is convinced that their house hasn't sold because of lack of advertising. I'm sure you have heard that.

I think agents have to advise sellers of market conditions: explain buyers market,etc.. This should be done at the time of the listing. It is difficult to talk about conditions later. Locally, the average days on the market is 140. Our market has about 2000 single family detached homes.

Our company advertising policy is a price reduction at day 45 for a new listing, then every 30 days thereafter. Again this is discussed at the listing presentation.

WE always dislike seeing our listings expire and to show up at a competitors at the RIGHT price. They are then the heros with a correctly priced house.

Listings priced correctly sell quicker!!! This is nothing new!!! Real Estate has always been the same, we just have a little more technology.

Posted by Janice Lipka on 05/29/2007 01:10 PM

Comments (8)

8 Comments on WHY HAVEN"T YOU SOLD MY HOUSE????

MAY

2007

Janice, you are so right, you must discuss pricing and price reductions right at the listing presentation. We explain that selling the home is a team effort, both the PRICE and the MARKETING must be right for the CURRENT MARKET. We do the marketing, but they have to be part of the team with the right price. We still don't have it down pat, but are working on it. Up front and center is the best policy.

MAY

2007

Good Morning Janie, I am glad you agree. Some agents haven't figured this out yet. They might agree in theory but they allow the seller to be in control.

AUG

2007

i beleive most realtors minmize advertizement as much as possible not unless ads are listed in contract.

When you've been in the business a while, you learn what works and what doesn't work. I just had a seller ask why I'm not in the newspaper with his house ads. I explained the day we listed that I don't run classified ads--they don't work any more. I spend money where it works: direct mail and the internet plus one local real estate journal that WORKS. Period. So I had to go over that again with him. You cannot just throw more ads in the paper or throw money at advertising more & sell the house. You have to spend carefully, in a targeted way. Sellers who start to panic don't see this. You can go over it in the beginning, but they're not fully listening when they're signing the agreement. Or they forget what you said about advertising. Or they see other companies (throwing their money away) in the newspaper ads and they want one too! When they're in the panic mode, they just want it sold, and seeing you run ads means you're working (in their eyes) to sell it. No ads means you're NOT working. I know--not true, but it's the perception.

AUG

2007

I've found it's even more important than ever to take control from day 1. I've learned not to negotiate listing price at the initial appointment. I'm the expert, I tell them the range that I'll start the listing at and they can pick the price from that range with the lower the price, the faster the sale. Most clients opt to be somewhere towards the middle.

The important thing though, take control up front...I'm the expert, not the seller, my terms or they can find someone else. When an agent negotiates it hurts credibility and control. I also don't negotiate down on commission but they can always pick a higher one if they want.