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The Price is WRONG Bob!

By
Real Estate Agent with Transaction Alliance 513.520.5305 www.LizTour.com SAL.2002007747

Home pricingThe Price is WRONG Bob!

Roddy says "Come on down Next Contestant" in the "Price Your Home" game!  Spin the wonderful pricing wheel, pick a number, let's find out if you're going to STAY the owner of a "slightly used, vintage" home!!

Oh wait, that's not really how it works is it??  There's no practice game guessing how many boxes of Kraft Mac & Cheese it takes to get to $8.43, no dropping Pachinko chips to warm up, you're LIVE from the first time the sign is in the yard and you're in MLS!

And as much as we'd like to sell ALL our Warren County listings, sometimes we don't succeed.  Yes, it's true.  The Liz Spear Team of RE/MAX Elite does NOT sell a home every time we put a sign in the yard. 
AcesWe don't fail often, but it happens. It's not for lack of effort, or lack of marketing.  We've got all that in spades.

The bottom line for every home is PRICE.  All the marketing and effort in the world doesn't trump PRICE.  It doesn't matter the home's condition, location next to a dump, style or need for updates, there IS a price for every home and situation that WILL get the job done.  Get the price right, the buyers WILL beat a path to your door, and you'll get an offer or two or more.

The problem is sometimes that RIGHT price is all WRONG for the seller.  A case of where the seller WANTS to move, but perhaps CAN'T move without some great luck. Where the mortgage owed is full market value or maybe even a bit more, and the bank account just doesn't have the balance to make it happen.  A short sale isn't viable because they don't want the credit hit, and walking away isn't either.

Despite those circumstances we'll do our utmost to sell that home.  As long as the seller understands the odds are VERY long for both of us.  We've shown you the comps, you know what we think is the RIGHT price, but we'll try at the WRONG price as long as the gap isn't too large. 

All we can say is be patient and trust that we'll be doing our part and keeping you informed.  And if you decide that it's just not the right thing to keep your home on the market, well no hard feelings!  We hope that you were satisfied with our work and when circumstances change and you're ready to try again, we'll be here ready to help!

Serving Warren County's residential real estate needs,
Liz and Bill aka BLiz

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Serving Warren County Ohio & Adjacent Areas

The Liz Spear Team of Transaction Alliance
Elizabeth Spear, ABR, Ohio License SAL.2002007747

William (Bill) Spear, Ohio License SAL.2004011109  Kentucky 77938
Ask for us by name if you visit the office!

EHO
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Fax: 866-302-8418

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Comments(50)

Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Bliz, 

Absolutely fantastic blog post!  The PRICE has to be right in this environment.  When it's not, it's a huge challenge.  I hate not making a sale happen for my sellers.  

Even when we think we are right, there have been a few surprises the last few years that keep us guessing. See, there's excitement in real estate, too.  Just not as much as on TV?

All the best, Michelle

Jun 09, 2011 02:35 PM
Cindy Marchant
Keller Williams Indy NE 317-290-7775 www.marchantteam.com - Carmel, IN
"Cindy in Indy" , Realtor, Fishers Real Estate

Love the price is right analogy!  I had one I lost recently...I knew going into it I probably would lose staging and tour money...but tried it anyway...I don't do it often though...  That's why you need the sellers that have to sell...

The last three I've sold...all took way less than they ever thought they would...but all three "had" to sell so it got done.

Jun 09, 2011 02:41 PM
Karen Bernetti
Southington, CT

Well said - but such a bitter pill to swallow.  It's best to be realistic from the start.  We know what happens to a house that sits too long on the market at the wrong price - and that's not easy to swallow either. 

Jun 09, 2011 02:47 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Michelle, We'll take on the challenges...you get a lot of them when your niche is Expireds!  If they were easy, they'd have sold the first time :)

Cindy, It's certainlhy a calculated risk.  Some work, some we're out the time and resources we expended.  Such as real estate life.  And there is a huge difference between the Have Tos and the Want Tos.

Karen, It's okay, we knew this was probably the likely outcome of this home for some time.  Realistic we could all be, just couldn't financially make it happen.  Perhaps next time :)

Jun 09, 2011 03:00 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Liz & Bill I do understand that some people can not lower the price due to their circumstances.....then all we can do is show them the absorption rate and how much longer the house needs to be on the market if they do not listen...oh well we will be for them next time I agree. I just had one fall into the same category.(:

Jun 09, 2011 03:01 PM
Al & Peggy Cunningham, Brokers
RE/MAX West Realty Inc., Brokerage - Brampton, ON
Our Family Wants To Help Your Family!

You're right BLiz, price is king and jester too.  We have seen many sellers lose money by pricing too high......

Jun 09, 2011 03:17 PM
Nona Swann
Swann & Associates Real Estate - Indialantic, FL
Serving the needs of the Sellers in Brevard County

Bliz,

It is the price that stirs the offers. I find that if the seller puts a good fair market value on the home right from the beginning they receive offers closer to the list price. If it is over priced it sits and goes below the fair market value before it finally gets an offer.

Sellers sometimes are in denial of the current market OR they think their home is the exception.

Jun 09, 2011 03:22 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Endre, And I'm okay with it when we and the sellers are both fully aware.  With a typical long DOM here, if it takes a year to sell a property, and they're loyal to us, we'll stick it out as long as they're willing.

Al & Peggy, We've been fortunate to have a stable and not falling market.  Overpricing in the falling market makes the Jester VERY happy!

Jun 09, 2011 03:23 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Nona,  Fortunately for our area sellers, price has been flat for some time, and perhaps slightly climbing.  Make the pirce high mistake seems to have less penalty other than additional days on market.

Jun 09, 2011 04:25 PM
Karen Baker
Sunset Beach and Beyond Realty - Sunset Beach, NC
Professional Help with Rapid Responses...

Bliz ~ The price can be dictated by the market in most areas ~ Is the price dictated in your area?

Jun 09, 2011 04:35 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Karen, In most cases there are enough comps to make an accurate estimate.   A little harder with country properties, and even more challenging when the seller doesn't have the financial means to make the predicted price work, and not in a situation to go short sale.

Jun 09, 2011 04:55 PM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

It used to annoy the heck out of me when sellers would list with the agent who promised the highest price. And I knew several agents who would promise the moon just to get the listing - then browbeat the sellers when an offer came in low.

Some sellers simply don't understand that it's the market that sets the price, not the agent.

Jun 09, 2011 07:14 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Marte, True!  The hope for the listing price is that it generates traffic AND an offer or more, and hopefully enough the seller can make thier transition.  In some cases, the list price can't be set low enough to get the desired effect.  If it's due to "buying the listing" those our frustrating.  If on the other hand it's like our situation where financially the seller can't go any lower and it's a long shot to try, well that obviously doesn't bother us as much :)

Jun 09, 2011 11:00 PM
John Howard
Century 21 LeMac Realty - Mountain Home, AR
GRI, Mountain Home, Arkansas 870-404-3614

Read your post with the intended grin...but oh so true as well....We have to get them priced right!  Thank You for a great post!

Jun 10, 2011 03:16 AM
Patricia Beck
RE/MAX Properties, Inc., ABR, GRI, SRES - Colorado Springs, CO
Colorado Springs Realty

So true, any home will sell for the right price!  It's a tough situation when the seller does not want to short sale and the home isn't selling since it is the wrong price for the market.  Great post!

Jun 10, 2011 08:00 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

John, Gotta have some fun don't we, even when we lose a listing! :)

Patricia, It is a rock and a hard place for the situation.  We do what we can, sometimes it's enough, sometimes it's not.

Jun 10, 2011 08:04 AM
Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty

Such a great post.  I am dealing with an overpricing situation right now.  The potential client was recommended by a former client.  She does not need to sell, she just wants to sell and build a smaller home, since her children are gone, and her husband died about a year ago. She feels her house is too big for her.

The only way she can build is to sell for higher than current market value.  I have recommended that she really think about her situation, because the chances of getting a sale at her price is slim.

Jun 11, 2011 05:39 AM
Kimberly Brandon
Smart Moves Real Estate - Venice, FL
Broker/Owner

You nailed it - Price is King

Jun 11, 2011 06:19 AM
Jennifer Manchester
Suburban Properties of Charlotte, LLC - Mint Hill, NC
GRI, ePRO, ASP - Broker/Home Stager

The right price is wrong for the seller.  I love that line, it is so true for so many these days that want to "try" their price (because they think yours is wrong). Congratulations on the post.

Jun 11, 2011 06:46 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Karen, Sounds like a rock and a hard place.  May have to settle for a resale?

Kimberly, I'll have to give credit to Tish in #5 for that :)

Jennifer, In this particular case, both we and the seller knew the price was wrong, but they couldn't do right.  An attempt was made knowing it probably wouldn't succeed, so no feelings hurt after the try.  Such is real estate life.  A conscious decision on our part to make the attempt :)

Jun 11, 2011 10:10 AM