Ar_home_b_search
 

It seems like this phrase, "I'll just list it at this price first. See what it does. If it does not sell by the time I need to move, then I'll just reduce the price"....

How many times have we heard Sellers say that? It sounds like they are in no pressure to sell at all. Or they feel that it gives them enough time to justify a "higher" than market price first, if they are no takers, then they could always lower it. Some **think they have all these months (3 - 4 months) to sell, for the "highest" price is something they can afford. While I can certainly understand this thought, I may not agree with this philosoph at all.

Unless you are in a Seller's market, most of us are experiencing some form of "Buyer's market". By definition, a Buyer's market is one that has more homes on the market for the available buyers. This translates to more properties, thus taking a longer time to sell. Ultimately, falling prices. So, how does a phrase such as above would can help in this Buyer's market? The honest truth: It does not.

In my experience of working in this current Buyer's market, almost all Buyers are not forgiving. If your property is somewhat "higher" than than the rest of the competition, they would not come back for a second look even after a new price adjustment (ie price reduction). This may be as sensitive as $5,000, let alone some properties that are priced $10,000-$20,000 more. The more important thing is to count the entire time (with the "wrong" price) as time-wasters for both the agent and the Sellers. Sure, showings during the first few weeks will go strong and the momentum and enthusiasm will be high, but very soon, reality will hit. And when it does, it hurts.

Another painful truth is to realize that the whole time the property has been "market", sad to say, Sellers can forget the time it has been on the market. The "real" clock really started clicking when the property was priced correctly. I know it hurts, but also do not say that "I have already reduced the price by $20,000"... Hmmm.... The truth is that it does not matter how much you ask until it is priced correctly. You probably should have priced it correctly the first time, then you may not need to reduce it at all. Don't start "counting" on your equity until you price it correctly - better yet, until you have a contract to see how much is net at closing. These are painful events that no agents want to see.

So, what is the lesson learnt? Price the property correctly the right time around. If you have an efficient agent partnering with you, you might want to take the advice. Your real estate agent representing you are in the same boat as you. They want to go to the same place you want to: the closing table. If a real estate agent can yield you a higher price, he or she would certainly want to do that. After all, the return would be a little higher too. However, testing the market is not a strategy in this unforgiving Buyer's market.

If you are in the market in selling your home and you would like a real estate partner in helping you close one chapter of your life and move on to another, please feel free to contact me. I proudly serve the North Texas real estate market from the Denton, Dallas and Collin county areas. 

 
This post has been included in Texas Real Estate News Collin County, TX Real Estate News Frisco, TX Real Estate News
Post is included in group: Learn to be a Top Producing Listing Agent
Post is included in group: Realtors®
Post is included in group: Selling Soulfully

9 Comments on Seller's Myth: Price This First, I Can Always Lower It

JUL
29
2007
2 Featured Posts
So true.  Pricing it too high to start off to see what happens also adds to the Days on Market.. another perception that can make a home look bad even after lowering the price.
6:06pm • #1
1,546,385 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

How much does the owner expect you to spend in cash and time to expose a home clearly overpriced?

That is the quesion/

6:17pm • #2
897,222 Points 20 Featured Posts Outside Blog
Good point, over pricing seems to be how sellers want to start out. Everyone seems to be educated in what our market is doing now vs 2 years ago, IMO....regards, Charles
6:31pm • #3
171,262 Points 3 Featured Posts

Buyers nowadays know exactly what market values are. They can comparison shop on the internet. Some sellers hope that someone will come along, fall in love with their house and will want to buy it despite the price.

Sandy

6:40pm • #4
Amen! Almost all sellers want to start out high and then reduce. Sellers need to read some of the blogs here on AR to see how this really affects them.  Good post!
6:45pm • #5
937,644 Points 361 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
Hi Loreena, Well I guess you know how I feel about overpricing. getting sellers to understand the importance of getting it right is sooooo important. Chasing a declining market downward is a losing proposition.
6:47pm • #6
281,336 Points 1 Featured Post Called Shot Master
We have to know what our properties competition is doing.  If yours hasn't sold within the first thirty days, you need to reevaluate your price position.  Many Buyers have passed up your listing in those crucial first weeks and are now GONE.  They've purchased your competition.  Revisit your original CMA and calculate your new strategy with the Sellers. 
8:38pm • #7
649,189 Points 29 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master
Hi Lorena:  I would rather walk away from a listing than take an over priced listing.  Usually those over priced listing end up selling for less than what they would have got if they had just priced the home correctly to begin with.  I think it gets a stigma.
9:49pm • #8
164,356 Points 6 Featured Posts Attended Rain Camp
Then there's my favorite..."Well I don't want to give it away."  How many times have we heard that.  Just come up with a professional way to turn down the listing.  You can always tell them to think about it and call you the next day.  If they want to overprice, turn them down over the phone if that makes it easier.
10:31pm • #9

What does the graphic say?

Leave a response…



(optional)
What does the graphic say?
 
Dsc00397 Ambassador_large

Loreena Yeo, Realtor®| Frisco TX Community Ambassador (214)783-2210

Frisco, TX

More about me…

3:16 team REALTY ~ Locally-owned Frisco TX Real Estate Co.

Address: Frisco, McKinney, Allen, Plano, Valley Ranch, Little Elm, The Colony, North Dallas, Addison, Frisco, TX, 75035

Office Phone: (214) 783-2210

Cell Phone: (214) 783-2210

Email Me

Follow me on Twitter

Loreena Yeo on Facebook

View Loreena Yeo's profile on LinkedIn

 
Loreena Yeo on Zillow
 
Loreena Yeo
 


View Top Picks - Houses of the Week - as viewed by Loreena. These are homes with attractive value. Contact Loreena for a showing.

Testimonials
16341
' We were completely impressed with Lorenna. She helped us find and buy a home in Frisco. We have very high expectations from a realtor and she ... more '
5.0/5.0
by JerryInFrisco
12708
' Loreena is our agent for life. She has gone well beyond the call of duty on all aspects of our home buying experience. She graciously and joyfully ... more '
5.0/5.0
by rakoczy_99
7058
' Professional, efficient, knowledgeable and easy to work with. Also ethical and very up with information and resources such as builders, specialty ... more '
5.0/5.0
by Jeffallysonk
My Frisco Real Estate Listings on Zillow


Listings

Links

Archives

RSS 2.0 Feed for this blog

Find TX real estate agents and Frisco real estate on ActiveRain.