Ledyard Real EstateTough love with a bite of reality for sellers in New London County serious about getting their home sold.

I've told this story a few times over the past year but finally my story has an ending. Not a happy one.

A year and a half ago, I completed a market analysis for a relocation company for a transferring client who owned a home in Ledyard.  My suggested list price of $325,000 was significantly lower than that of the agent I was competing against. The homeowner, thinking his home was worth much more than my recommended price, listed his home at $389,000. The infuriating part of the story is that this home was located in a subdivision of similar homes and not one of them had sold anywhere near that price. To suggest a list price of $389,000 was just crazy. I was so incensed that I sent an email to the relocation contact saying I would have considered it a violation of the code of ethics to suggest listing the property at that price.

Last week the home closed at $210,000. This is not a typo.

Prices continued to drop by about 1% a month in 2009. By listing so far over market value, the relocation company, ended up chasing the market down with a series of price reductions that were too little and too late. In hindsight, my $325,000 estimate was probably a bit high, but had the home been listed at $325,000 in July 2008, I suspect the end result would have been a sales price of about $300,000, a $90,000 difference. It would be unprofessional of me to send an "I told you so" email but I admit I feel vindicated.  

The best chance of selling a home close to asking price is within the first 30 days. Sellers would do themselves a favor by pricing their home lower than the competition and lower than recently sold comparable homes. Chasing the market down is never pretty.

Straight Talk on Tuesday Morning is an ongoing series for sellers in New London County who are willing to listen, roll up their sleeves, and do what they need to do to get their home sold. If you aren't serious about selling your home, then move along. There is nothing to see here.

Linda Davis has been selling real estate in Ledyard CT for 33 years. You'll find Linda's complete profile on her Online Business Card.

 
Posted by Linda Davis on 12/29/2009 08:10 AM   Comments (15)   Feedback in the Home Selling Channel   straight talk on tuesday morning  
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15 Comments on Straight Talk on Tuesday Morning

DEC
29
2009
800,700 Points 20 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Pricing in the rear view mirror still happens. I guess when you are looking in the rearview mirror you can not see what is ahead!
8:15am • #1
315,754 Points 39 Featured Posts Outside Blog

What a shame that some other agent actually took the listing at such a high price or maybe even suggested that price.  Chasing the market never works out and I agree that the 1st 30 days of market time is crucial!
8:19am • #2
1,004,039 Points 13 Featured Posts Localism Sponsor Outside Blog

Linda - I run into this sort of thing in my market where certain agents tell the seller a crazy high figure to get the listing.  I often wonder if that agent even thinks they have a chance at selling the home or if they are just trying to play the game of pinball and bounce a buyer off of that house and onto another listing that is priced right.  Either way, the seller is the one who pays the ultimate financial price and ends up selling for far less than we could have got if we would have listed it at or below the current market value.
8:21am • #3
878,477 Points 75 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Linda how many times have we heard this same story before? It is amazing sometimes how sellers seem to think they know more than the professionals do.
8:52am • #4
1,582,982 Points 429 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Linda - just another good example to show that we do know what we are talking about, and not listening to the market can be a huge mistake.

Jeff
8:59am • #5
1,151,519 Points 86 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

This in itself would be an excellent article to present to a home seller when they insist on pricing high. Pricing at or near the last sale is never bad advice for comparable properties. Thanks for sharing.
9:01am • #6
103,058 Points 1 Featured Post Attended Rain Camp

Linda, I can totally relate to your post.  For some reason the sellers of the world still think they know our jobs better than we do.  Go figure. Thanks for sharing this.
9:08am • #7
493,808 Points 75 Featured Posts Outside Blog Called Shot Master

Linda - Wowsers!  Someday perhaps folks will give credence to a professional who tells them something that may not initially be ideal to their ears.  Hopefully others can learn from this all too common lesson.
9:19am • #8
1,095,729 Points 25 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Linda...same old story....the sellers think they know more and also get greedy.
10:13am • #9
373,580 Points 40 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

But, but, but....but I have new insulation....but I have a better deck....but I have updated light fixtures....

Sellers are doing themselves no favors by overpricing - whether it's an individual or a bank.  Buyers, and their accompanying agents, are smarter than that and will either pass it by or come in low.  No spin can change the realities of the market.
10:41am • #10
570,582 Points 25 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Hi Linda - I think this is our biggest challenge:  Convincing sellers that it is not a good idea to overprice their home "to leave room for negotiation" unless that room is very narrow.  Everyone takes pride in their own home and believes it to be worth more than it will get on the market - especially in a declining market.  It's too bad they wouldn't listen to you.  They could have been $100,000 richer.

By the way, HAPPY ANNIVERSARY!
2:54pm • #11
DEC
30
2009
1,945,692 Points 477 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Fact is, homes that are overpriced don't even get viewed since they can rarely compete in MLS description for features, BR, BA, etc. with homes that are priced right.

I agree.  The listing agent bought the listing and, not knowing what they were doing, cost the relo company. 

I wonder how much the relo company paid the seller????  MMMMM.
7:54am • #12
JAN
01
2010
165,653 Points 58 Featured Posts Localism Sponsor Outside Blog Hit Router

Happy New Year all!  Let's hope that sellers made a resolution this year to listen to their real estate agent!
1:42pm • #13
JUN
07
2010
1,176,751 Points 3 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp

Chasing the market when it's declining is so very painful for those who refuse to listen to the facts~
3:32pm • #14
JAN
28
2012

I like this straight talk. I wish that the govt.will take proper steps for this price control.Thank you for writing this special issue.

 
M&G Mortgage
5:18am • #15


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