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I recently worked with clients that hired me to professionally market their home for sale.
As with many owners in our area, they had high hopes their home would bring top dollar. Their figures and my figures on what we each felt the house would bring in today's market did not match. My figure was considerably less than theirs. As we discussed the current market, they were not happy and they told me so. This is a big pill for sellers to swallow, and for some it takes longer to swallow than for others. Often it's an education over time.
But, unfortunately, it's reality.
They took my recommendations in getting the home "show ready". And, they were in agreement to remove their pet each time there was a showing. They did a great job of keeping the house spotless, so the home showed beautifully. They were great to work with.
As a couple of weeks passed, I continued providing them with market reports on what was or was not selling in their neighborhood. They were receptive to a quick price reduction within weeks (as I had them agree to it at the time of listing, if we did not have an offer). I continued to tell them like it was. I didn't paint a rosy picture of an outrageous price I thought they might get. I asked, "Do you want to sell or not? We've got to be sure that the house does not grow stale on the market." The short sales and foreclosures have been undercutting prices in the area.
These owners received an offer on their home in just over 30 days, they negotiated it and accepted it. It was less than they thought they were going to get for their home BEFORE I met them. We worked together to help them gain a better understanding of the market, as well reviewing the comparable sales in their neighborhood. The house had to appraise, based on what other similar properties had recently sold for. So, realism did set in for them.
The closing on their home was successful.
The sellers were happy. They told me, several times, that they appreciated everything that I had done for them. They are straight shooters. They didn't mince their words. I enjoyed working with them. They told me that I never waivered in what I told them from the first day I met them. She said that I never fed them a line of BS just to get the listing, that I gracioulsy told them how it was, even when it wasn't exactly what they wanted to hear. They thanked me for my honesty. (I've been shown to the door once or twice by owners that weren't quite as receptive to my honesty.)
Ironically, I just finished reading an article from RISMedia. A study by the California Association of Realtors was conducted on consumers, asking if they would use the same real estate agent again. The number dropped from 79% in 2004 to 22% in 2009! 64% in the study complained that their home was on the market too long. 51% indicated that their house sold for much less than they had hoped for.
Often sellers that do not understand, are uninformed, or that have unrealistic expectatations blame their real estate agent. The study went on to add that sometimes agents are to blame when they are not educating their clients about the state of the market and current conditions.
What do you think?
Is an agent to blame when they are not educating their clients to current market conditions? Is the agent at fault when the house sells for much less than what an owner hopes for?
FOOTNOTE: I have added a link in this post to the original RIS Media article where these statistics came from.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.