I am of the opinion there are two types of home sellers. One home seller treats the real estate market like the lottery. (You can't win it if you are not in it.) They are under no pressure to sell and will only sell if they get enough money. The second seller needs to sell. They can not wait for the market to catch up to their price. I believe both listings are worth taking. A sign on a beautiful over priced home will generate buyers inquiries that you can convert to prospects. We all understand most of our closings will come from those homes priced properly to sell.If your customer wants to play the lottery what do you do? You explain to them how the market works and you will take the listing but they can not expect you be pressured to do the impossible. Being forthright and honest is always the best policy. The vendor that is overpriced yet expecting a quick sale can not be kept happy. That is a listing I will not take and do not want.
I realize it can be difficult to adjust when the market changes under our feet.That is what has happened here in Canada because of the more restrictive lending guide lines brought in by the federal government. I have never seen such a dramatic change in the market since rates were 22% in the early 80's. The scarcity of available home buyers have swung many local markets from a great sellers market to a buyers market in a very short period of time. Many of my listings that weren't over priced when listed are now over priced based on increased listing inventories and a higher number of motivated sellers. As an appraiser I am seeing more and more homes selling below replacement cost with definite downward pressure on prices. As more lower comparable sales become a matter of record we could start to see our hard earned tax free equity being eroded. This on top of the volitility in the stock market. Trying times to say the least. Through all this our customers need our advice and we need to make them aware of what's going on. They watch the national news and hear about the housing market in Vancover or Toronto being so strong. Any local market impacted positively by immigration (such as Vancover) or migration (such as Fort MacMurry) will probably maintain a reasonable housing market. That is not true for most of canada's small towns and community's. With the tightened lending requirements and no qualified buyers that small builder can't keep his small crew working. Many of these tradesmen will end up migrating to those other communities where there is work. Your local market is unique to your location and it is your responsibility to make your customers aware of what is going on. That can be tough if you are located in an area that has swung to a sellers market. I have just posted this video on my facebook page. It is a public video on youtube. The title is "Why Some Houses Sit While Other Houses Sell." It is an explanation by Jay Papasan and I think it is an excellent video to show you how to explain pricing to your customers. here is the link
http://www.youtube.com/watch?v=TUJeJYHj-cE&feature=share
Happy Selling
Larry
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