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Phyllis Lerner, Realtor
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45 Comments on The Asking Price Roulette... How It Starts... Where It Ends...
Buyers are an educated group while sellers appear to be a group more often in denial. At some point there will be a meeting of the minds.
Phyllis, some very good points. Sellers don't realize that chasing the market with the price will not bring in buyers. Sellers need to read this post.
Well put. There are sellers still want to put their house on the market for a high price and it just sits there.
Phyllis, that original listing price is essential to get a house moved quickly. Unfortunately, those too high prices are too often the norm.
It is essential a home is priced at or just below market price to sell in thie market. Over priced homes make up over half of the inventory and account for 90% of days on market.
Phyllis:
Sometimes no matter what comps you show your client they think their house is so wonderful a buyer would be willing to pay more for it. Oh, I wish that were true. Then all you would have to worry about is the appraisal.
Phyllis, MIT did a study on Sellers and actually came up with a name for the syndrome whereby owners of a home think their home is worth more than it actually is.
Sharon
While many sellers believe that their home is special in some way and therefore should demand a higher price than the competitors down the street, they are also very afraid to be out negotiated and therefore want a "security cushion" above the actual market value of their home... resulting in overpriced listings... the better way would be to price their homes for sale aggressively and let buyers fight over them... many times that strategy results in multiple offers... and faster closings...
You are so right. My mother, a veteran Realtor, always used to say the first offer is usually the best offer.
Phyllis - Great tips and suggestions for sellers to consider. There isn't a lot of satisfaction when sellers tell you, you were right, and they wish they would have listened to you from the start. It's time and money lost.
Phyllis, this is an excellent post. Thanks for sharing today.
Hi Phyllis Great post on the disadvantages of overpricing a listing. This would be a great piece for use in a listing presentation.
You are so right. The sellers who understand correct pricing from the start yield a higher price and better terms than the sellers who are in denial. In my market of Santa Cruz County, CA. buyers are well educated on the inventory and values and when a home is in good condition, in a good location and priced right multiple offers are often obtained.
Price matter the most and it should reflect location, condition and amenities. Overpriced homes waste a lot of time for everyone.
Your post is excellent and would be great to give potential sellers to start a discussion.
A home is only worth what someone is willing to pay at an arms length agreement.
great post but most sellers Agee with your cautions ...the just don't agree with what overpriced is for their home ...a challenge for some even when it appears to be black and white
depending on the market, but over pricing in a market that is still declining can cost the seller dearly. In the case of sellers who are buying up this market creates a great opportunity to make up for their perceived loss on the next purchase.
the whole process can be frustrating as so many people 'know' more than we do.... sometimes the process isn't worth it... other times- you are glad you stood it out!
"Helps only to sell similar but well priced properties in your neighborhood", what a great point. You can simply ask your potential listings if they want to sell their own home or if they are trying to help sell other homes in the neighborhood.
That one line is a gem for me!
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