In teaching my class on Homes, Buyers and Mortgages, I ask the attending Realtors "How many listings in your area are overpriced?" The number most frequently mentioned is 50%. Why is that number so high, particularly in today's market? The most common responses are:

• The sellers refuse to accept reality.
• Sellers have an inflated, unrealistic view of the value of their property.
• Sellers do not understand the impact of distressed properties in their area and the relationship to their home price.

Each of these statements basically says the same thing - sellers want more for their property than they are likely to receive, if they sell the property at all.

In our classroom discussion, the consensus is that it is very difficult to get the seller to be realistic. But, the fact is that if the appraisal does not support the sales price, the alternatives to resolving the situation are limited.

There are a number of non-traditional things that should be considered to aid in marketing the property. As a matter of fact, they can aid you in focusing the property to specific buyers.

• Can the property be financed? Is the property a Condo and eligible for FHA or Fannie Mae financing? If not, look to a local lender.
• Property location may influence the types of financing options that are available. An example of this is a rural property that may be eligible for US Department of Agriculture - Rural Development loan.
• Is it a unique property, such as a farm, that makes a local lender a better option for financing?
• Is the property in need of repairs and eligible for the FHA 203-k rehabilitation loan?

The more that you understand about various available financing options, the better you can service your client.

Jason Kotar, Author

Homes Buyers and Mortgages