I hear this comment several times from a prospective seller,  "If I don't get X from the sale of my home, I won't be able to do Y".  So "we" need to price it at Z!  Mr. & Mrs. Seller, this is not a good approach to take in selling your home.  It doesn't matter to a prospective buyer what you want to net.  The only thing that matters is what a buyer is willing to pay for your home.  

I research, very diligently, what has sold in the area, comparable to your home. Remember, your home will have to appraise. An appraiser will look at those comparables as well.  I look at what is on the market that is your competition. We want a buyer to choose your home over the others.  I evaluate how many houses sell per month and how many are listed in the area of your home.  That is an indication of the number of buyers.  And then I do the math to reach a price to market your home based on its condition, location, appeal.  There is no calculation for what you want to net.

what you want to net

 

 

 

Agents don't create the market.  Market demand, interest rates, the economy and inventory are what control the local market. We realtors can't fix the economy and we can't change what people are willing to pay for your house.  So we cannot control what you want to net.

I Can't List Your House based on What You Want to Net

 

If you are Buying, Selling or Relocating to the Lansdale, Montgomery/Bucks county PA area and need help from a professional REALTOR®, I would be happy to assist you!
Please visit my Lansdale real estate website for property searches and to sign up for free listing alerts and other information.

 

 

 
Star Posted by Kathy McGuriman, CRS, SRES, ACRE Realtor for Lansdale, PA area on 05/01/2011 08:37 PM   Comments (95)  
Short URL: http://actvra.in/9dR

95 Comments on I Can’t List Your House based on What You Want to Net

20 Most Recent Comments Displayed Show All

MAY
03
2011
1 Featured Post Outside Blog Called Shot Master

It is hard sometimes to get a seller to be realistic.  They had to look at what the real value is.
5:40pm • #76
119,991 Points 1 Featured Post

I'm thinking you need a T shirt that says "Numbers crunched here, wishes are handled by another department."
6:24pm • #77
2 Featured Posts

Marshall - Good one!
7:03pm • #78
297,580 Points 8 Featured Posts

Great post Kathy and I love Marshall's T-shirt idea.

I wonder if clients like this would respond to an analogy, or if you asked him to look around and guess whether all the other homes that have recently sold in his neighborhood were priced at what the vendors wanted to net.
9:26pm • #79

Great post!  Sometimes sellers need to be reminded of these things!
Jodi Theis
10:06pm • #80
MAY
04
2011

Kathy - Trying to get a seller to look at his house as an investment decision is so challenging.  Their memories, the money they spent to paint it pink to match their curtains, and on and on.  When they were spending the money they probably were not up on what the market for their neighborhood was doing.  Hence the battle.  Do you provide occasional CMA's to homes in your farm?  I think this is one way of at least having a foot in the door and a track record of service that may have some influence when selling becomes an option.
2:09am • #81
154,703 Points 1 Featured Post Outside Blog

I hear this comment all the time as well.  A home is only worth as much as someone is willing to pay for it.
8:32am • #82
166,610 Points Outside Blog

I agree - the research we do to help a seller decide on a price, is the best we can do.  What they want to net has absolutely nothing to do with what the market will say!
10:52am • #83
130,258 Points 2 Featured Posts Outside Blog Attended Rain Camp

In the middle of drilling this into a sellers head right now.  She'll eventually get it and I will continue to repeat it. Thanks!
11:36am • #84

So true, as one person said there is no testing the market today. 
11:54am • #85
1,023,886 Points 15 Featured Posts Localism Sponsor Outside Blog Called Shot Master

I wonder if they needed less than they could get if they would be happy with a Net Listing and just settle for what they needed?
12:42pm • #86

I love the article esp since I just had this conversation with a seller just two days ago!

I also love that you took the activerain university class on blogging and it shows :) GOOD JOB!
1:29pm • #87

Yes, funny how sellers seem to think things work ! 
7:25pm • #88
137,278 Points 1 Featured Post Outside Blog Attended Rain Camp

Sellers also don't realize that in many areas, tightened lending markets have reduced the number of people who can actually buy, so that even the properly priced homes have fewer potential buyers.
11:50pm • #89
MAY
05
2011
2 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp

Kathy, you put it so well!  If only Sellers could just KNOW this, or at least have the capacity to detach their emotions and use their eyes of logic and common sense!  (Oh!  I forgot!  Those things don't count for much any more, do they?)

You solicited some great ideas and responses, but especially some humor!  I'm still chuckling over the two funniest, which were so clever (Marshall & Scott)!  And I really appreciated Jim Hale's graph!
2:23am • #90
MAY
19
2011

Great post!
1:39pm • #91
MAY
24
2011
199,383 Points 5 Featured Posts

So true, I think many sellers often forget an overpriced home will not appraise.
10:17am • #92
JUL
19
2011
354,662 Points 19 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

That is a great description of the pricing recipe. Have to make it tasty for the Buyers or the house sits on the shelf, so to spreak.
9:39pm • #93
AUG
18
2011

Great post - my favorite is "if you were a buyer would YOU pay that"?
Connie Addison
6:06pm • #94
NOV
15
2011
115,846 Points 3 Featured Posts Outside Blog

So very true Kathy!  Since when did how much money a person needed from their home have anything to do with what it's worth.  I'd like to get a million from my home so I can pay cash for a home on the water, pay off all my bills, and go to Hawaii for a month.  Nevermind the fact that it's worth $150k and my mortgage is $120k.  LOL!
12:23pm • #95

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Kathy McGuriman, CRS, SRES, ACRE Realtor for Lansdale, PA area

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