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Dear Seller, About that number in your head....

By
Real Estate Agent with Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605

Numbers gameWhenever I go on a listing appointment, I generally find that the seller already has a “number in their head” about what their home should sell for.  This number can come from various sources.  It is – unfortunately – almost always higher than the current market can command.

In truth, I can’t blame sellers for this…their minds have been levered to continued price increases to such an extent that the current market has left most sellers blind sided.

The first thing I often hear is that “I need to get X out in order to buy my next home which I can now get for Y  because its gone down in price.    The trouble if the property you want to buy has gone down so much in price, chances are the property that you want to sell has gone down by a similar percentage.  Wishful thinking is often the culprit here.  Markets are fluid – that was fine when prices were going up – but it also holds true when prices decline.

Misinformation is another issue.  Many sellers look at what their neighbor is asking for their home.  Asking isn’t getting.  Many listings are overpriced  in this market – so setting your price on the basis of other listings is not a wise strategy.

“But my neighbor sold their house for X just six months ago!”  Six months is a lifetime in a depreciating market.   If your market is depreciating – and many markets still are – then prices have decreased over six months.

Zillow zestimates and other information on the internet may or may not be accurate.  Zillow has been off as much as 25% in our area.   So if the zestimate of your property seems too good to be true, it probably is.

If you need to sell, price your home competitively – this is particularly important in a declining market where inventories are high and buyers are few. Overpricing your property will result in fewer or no showings.  The property will sit as the market declines further – resulting in an even lower price down the road.   Overpricing a home is just about the worst thing you could do in this competitive market.

To Search for Homes and for further information go to my website/blog with free home search at The Westchester View

I am always happy to answer your questions and you can speak to me directly on my moble phone: 914-374-5529.

 

© 2010 Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.

Dear Seller, About that number in your head….

Comments (108)

Team Honeycutt
Allen Tate - Concord, NC

When sellers over price I  think they end up getting less in the end.  I know many look at what they owe to come up with the price and unfortunately that doesn't work right now.

Mar 08, 2010 02:37 AM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Cheryl,

In a depreciating market, that would work very well - good idea.

 

Hi Angelica,

You are welcome, that's a good way of putting it to those who "cashed out."

 

Hi Damon,

Interesting cooincidence!

 

Hi Allen,

No, that doesn't work at all.  In an appreciating market you could get away with it.

Mar 08, 2010 03:23 AM
Christianne O'Malley
Dickson Realty - Reno, NV
Exceptional Service - Delivering Results in Reno!

The best statement you made in the entire post is "Asking isn't Getting". It all boils down to that. It's sad so many sellers seem to be so misinformed about the value of their home. Great post, and congratulations on the feature.

Mar 08, 2010 03:43 AM
AZ Mortgage Broker: Michael George
Arizona Wholesale Mortgage Inc. - Phoenix, AZ
AZ Mortgage Rates

Great post Ruthmarie.  I hear this all of the time.  Then, they often blame the Realtor for trying to low ball a quick sale...  But there are no quick sales in this market, are there?  The sad part is, the first Realtor might lose the listing and it might take two or three before they understand the reality of it.  Frustrating.

Mar 08, 2010 05:29 AM
Evelyn Zebro
Beverly-Hanks & Associates - Asheville, NC
Asheville NC Real Estate Broker

How many times have we heard that one before!  I do know the more I hear it (including all the other agent stories) the easier it is to tell it like it is.  Soem sellers get it and others don't.  But at least I'm standing my ground.

Mar 08, 2010 05:44 AM
Terry McCarley
Coastal Real Estate - Cape Coral FL - Cape Coral, FL
REALTOR, SRES, CDPE - Cape Coral, FL

Great post...I am meeting a client this week that already has a price in her head that is totally over the top.  It boils down to asking them (after you review the facts with them) "Do you want to list your home or do you want to sell your home" - if they just want to list it, I'm not interested.

Mar 08, 2010 07:51 AM
Irja Kujala
Coldwell Banker Bain - Tacoma, WA

Good post, great comments. I think that this is one of the biggest battles we face frequently: pricing our listings. I would feel like a cheater if I did take something grossly overpriced, because I would by my actions give the sellers hope that the home will sell, when I know it will only waste their time, and make them exhausted (as well as me). Sellers telling you that they are in no hurry to sell are LYING! They are in no hurry for the first two weeks, and then you really have your feet in the hot water. Of course, I can't say that I have not sometimes been surprised about the price a listing has brought in, when I would have thought it overpriced. We don't have that crystal ball, but our predictions are by far closer than the sellers wishful thinking. We need to be professionals even in tough times.

 

Mar 08, 2010 09:01 AM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Michael,

I'm sorry you are going through so much.   I hope you get to sell the domain names!  WOW!!! What a list...

Yes it is frustrating. Sellers really don't get it yet.

 

Hi Christine,

One of the problems is that many sellers feel - "if you don't ask, you don't get." That's the counterpoint I get to "asking isn't getting."  What they don't understand, is while the fiddle - Rome burns.  THe market is depreciating as they play with the "price in their heads."

 

Mar 08, 2010 10:40 AM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Evelyn,
I know how you feel. When you first hear it - the temptation is to go along with it - but not anymore....NOOOOOO WAY!  Good way to lose your shirt.

Mar 08, 2010 10:42 AM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Terry,

Good for you. We aren't doing sellers any favors by feeding a fantasy that could actually cause a lot of harm.

 

 

Mar 08, 2010 10:43 AM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Irja,

I had a situation like this...they needed to sell more than they were willing to admit to me.  By not telling me, they compromised my ability to advise them properly.  The house finally sold, but it didn't have to be an ordeal.

Mar 08, 2010 10:45 AM
Sherry Chastain
Hendersonville, Nashville, Old Hickory, Lebanon Tennessee - Hendersonville, TN
Realtor, Selling Homes, Lake Properties,Luxury Homes,Short Sales

Yes it's hard to walk away from a listing, but if we do then were not the bad guy. The agent that takes it and doesn't sell it is.

Mar 08, 2010 12:51 PM
Don Wixom
RE/MAX Executives Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

Great post! So true ! I love the, "Asking isn't getting!"

Mar 08, 2010 01:20 PM
Whitney Peddy
de Luxe Homes & Estates - Fort Worth, TX

What's unfortunate is how many owner/agents have this problem when selling their own homes. Great Post!

Mar 09, 2010 02:47 PM
Jonathan Goode
AlaLandCo (Land for Sale in West Alabama) - Marion, AL

Great article. It is important for us to know our markets and really help owners know what their property will bring in this market.  If an agent inflates the asking price or lists it at above market, they are doing themselves and the seller a disservice. Don't buy the listing. I have found that nothing convinces a buyer to reduce the number in their head as when I say, "Just last week we sold a property like yours for..." That helps the seller know you are getting results and that you probably understand what the market will bear. Good reminder for us all.

Mar 10, 2010 01:56 AM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Sherry,

This is so true. Taking a listing you can't sell is oh sooooo deadly - on all levels.  For the agent and seller alike.

 

Hi Don,
Thanks - but so many see the "list price" as the sales price!  Its amazing.

 

Hi Whitney,
This is why agents shouldn't sell their own homes!

 

Thanks Jonathan,

It is hard to tell sellers the truth.  They often just want to hear what they want to hear.  But telling them what we have sold and what has sold generally and for how much is very important.

Mar 10, 2010 04:10 PM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

Ruthmarie, what a great post! We just ran into this yesterday while discussing price on the phone with a prospective Seller. Sure enough, their number was higher than what we thought the market would command...Have to check out Predictably Irrational, sounds like a good book for us to read!

Mar 11, 2010 01:53 AM
Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.
Truly a reamarkable post and good information as well. You never kniow sometimes where a seller gets those numbers.
Mar 11, 2010 02:43 AM
Maria Weston
Fort Lauderdale, FL

I agree absolutely with you! Sellers should have more information about the real price of their properties. Share this ideas in www.flippingpad.com Is important to spread the word about this kind of topics! Thank you for this interesting article. Have a great week.

Mar 20, 2010 06:00 AM
Heidi Engel
RE/MAX Suburban - Mount Prospect, IL
BROKER/Realtor, ADPR, SRES, FSSR

Ruthmarie, another great post!!! I think you hit the nail on the head. I had to re-blog it!!

Mar 30, 2010 01:30 AM