Here is the situation. You need/want to sell your home. You engage a Realtor to look over your home and come up with a fair list price for your home. The price is below what you owe. Apparently you forgot about the second mortgage you took out when things were great to cover the cost of that vacation. Now what do you do?
This situation will come up today. I have a listing appointment this afternoon with a lady who now owes more than the house will sell for or appraise for. She will want to list her home at least $25,000 over the Realtor recommended price.
I will explain to her that with all the competition in the area and the recent foreclosures in the neighborhood, a high list price will do her no good. She will explain to me that she does not have the money to bring to a closing and she really is under no hardship at this time. I will explain that these are the times we are in. She will explain that she still needs to sell her home and I will explain that it will not sell at an inflated price, no matter how nice her home looks. At this point in time I will have to decline the listing of her home.
In these times especially price is everything. We Realtors are not trying to depress the value of your home. We are trying to squeeze every ounce of value out of your home by selling at the absolutely highest price we can, and still sell your home. But with the values of homes all around us low and the inventory high, pricing your home above market will not help you sell your home. I wish it would. The agent that assures you they can sell your home at the higher price you want may either be a genius or just need their sign out in your neighborhood. Either way I wish you the best of luck with your listing.
Hopefully, someday soon, housing prices will start to recover and we will be able to start recommending more agressive pricing. I can't wait for those days to be upon us.
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