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A Recipe For Disaster

By Sandy Childs

Real Estate Agent with Keller Williams Realty

September 20, 2009 10:30 AM

In Spartanburg, South Carolina, we are definitely in a buyer's market. We have a lot of inventory on the market. We have builder's, who cannot get loans to finish their construction and have unfinished houses just sitting. We are seeing many builder's take drastic price cuts just to move their inventory. This has hurt the resale market by lowering the price per square foot.

Then we have the seller's, who just cannot believe that their house is worth less than it was this time last year. I recently went on a listing appointment and was showing the seller their numbers. They just could not believe me. So, I got out my computer and pulled up the MLS and just started showing them some prime examples of what the market is doing. I showed them comps from the past 2 years and then the comps from this year. They were stunned, however, they no longer questioned my numbers.

I really don't know what it is going to take to get our seller's into the real world. The housing market is not stuck in 2005 to 2006, although, they are still there. In this market taking a listing overpriced is just not in anyone's best interest. First of all you set the seller and yourself up for failure from the beginning.

It is never good to chase the market down with a listing. The seller ends up on the market longer and gets less for the house, than if it was priced right and staged well upfront.

What are your thoughts and frustrations on this topic?

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John Mulkey

TheHousingGuru.com - Waleska, GA

Housing Guru

Sandy - Before the recession is ended, we will have lost about 50% of our home builders. And while many sellers haven't yet seen the reality of this market, they will when they can't sell.

Sep 20, 2009 10:38 AM

Sandy Childs

Keller Williams Realty - Spartanburg, SC

Realtor - Spartanburg, SC

John: How can we get the sellers to understand that their house will NOT sell if it is overpriced. What usually happens is that it expires, you lose the listing, then the seller lowers the price with the new agent and the house sells.

Sep 20, 2009 10:46 AM

David Painter

Sandy: An over priced listing is no good for any one. It is a wrong turn in the road from the beginning.

Sep 20, 2009 10:59 AM

David: What was it we were told in one of our classes: No amount of advertising dollars will sell an overpriced listing.

Sep 20, 2009 11:02 AM

Richard Weisser

Richard Weisser Realty - Newnan, GA

Richard Weisser Retired Real Estate Professional

Sandy...

As soon as I hear the words "I really don't need to sell" I think to myself: "Then you won't!" You can't chase the market, it is indeed a recipe for disaster.

Sep 20, 2009 11:47 AM

Richard: It's good to hear that you agree with me. Chasing the market is the worst thing a seller can do.

Sep 20, 2009 12:03 PM

Kathleen Frawley

Keller Williams 916 730-4404 Elk Grove, Wilton, Folsom, Sacramento - Wilton, CA

South County Sacramento, 916 730 4404

Time will fix it. I think we are a year or to ahead of your cycle, It's not a fast thing...sellers will get it, (eventually) meanwhile stick with the very motivated.

Sep 21, 2009 03:05 AM

A Recipe For Disaster

It is never good to chase the market down with a listing. The seller ends up on the market longer and gets less for the house, than if it was priced right and staged well upfront.

What are your thoughts and frustrations on this topic?

Comments(7)

Sandy Childs

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