How an Overpriced Listing Affects BUYERS!!
In the article below, Carla Muss-Jacobs does an excellent job of explaining how an Overpriced Listing Affects Buyers. Sellers may think that Buyers will look at their home anyway and offer less but most Buyers will not look at a home that is much outside of their price range.
Most Buyers today are also quite educated and have searched homes online and have looked at all the homes on the market. They really know what the competition looks like. Those who are working with an Exclusive Buyer Agent also have the expertise of their agent working for them.
By overpricing the home, Sellers are really missing out on a potential sale.
How an overpriced listing affects buyers!
Broker Bryant has written a little diddie that got me thinking: Some Little Diddies To Help You Be A Better Lister.
At first, I read it as "better listner" -- which might not be a bad thing for SELLERS!!
Realizing BB was talking about listings, and as an Exclusive Buyers Agents my brokerage does not list properties, I thought about how overpriced listings AFFECT BUYERS! And they do!!
1) Priced above market = Priced above my clients' price range: My clients have a budget. They are, typically, pre-approved for a loan and as the best Exclusive Buyer Agent this side of the grand 'ol Miss, I actually try to get great deals for them. This means, if they are pre-approved for $250,000, we look at properties in that comfort range . . .
If a seller has placed a home on the market to "test the waters" or assume "they can always offer less" -- that overpricing takes away my clients' motivation to see your property.
2) Priced above market = Making the other listings look good: Happens all the time when I tour with clients. There's a few overpriced properties in the mix. Of course, we might not realize this ON PAPER (going off the info on the listing sheet). But, once we get to the property we see just how much "puffery" the listing agent / sellers are doing.
There are OTHER homes on the market along with yours. Your overpriced listing just made the house two blocks away look REALLY GOOD!!
3) Priced above market = Scratching it off our list: If the properties in the buyers' price range have sufficient inventory, guess what? We're not going to assume your $25,000 above current market is a viable property to tour.
Buyers and their agents aren't mind readers. If you told your listing agent "we will take less" don't assume anyone else knows this!
4) Priced above market = Over all annoyance: Don't expect "feed back" on your listing to provide you with the correct pricing. If the listing agent didn't run the comps correctly, doesn't have their finger on the pulse of the market, don't expect buyer agents, or buyers, to price the property for you.
The listing agent who prices above market, then calls for "feed back" is annoying. The homes currently on the market are YOUR competition, not the buyers.
5) Priced above market = Missing the market: Added market time can be the kiss of death. Buyers are not coming out in droves in our local market. With pricing, the idea is to capture the market, not give buyers an excuse to cross a property off the list.
Prior to listing a property, many sellers have talked with several listings agents. If they list their home with the agent with highest list price, they are NOT LISTENING . . . TO THE MARKET!
EBA Portland ~~ 100% BUYER REPRESENTATION ~~ 100% of the Time
EBA Portland, LLC is an Exclusive Buyer Agency serving the Metro Portland real estate market since 1999. If you’re a Buyer in the Metro Portland area (including: Beaverton, Tigard, Hillsboro, Lake Oswego, Downtown Portland,) and contemplating a purchase, talk with a Buyer’s Agent . . . better yet, talk to an Exclusive Buyers Agent. Exclusive Buyers Agents do not work for listing brokerages or Sellers. An EBA’s fiduciary duty is: 100% BUYER REPRESENTATION . . . 100% of the Time.
Carla Muss-Jacobs
503-810-7192
Carla@carlahomes.comAll rights reserved ©
Comments (7)Subscribe to CommentsComment