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Email Questions: Can We Try a Higher Price For The First Month?

By
Real Estate Broker/Owner with Waves Realty BK3246853

Few questions bother me more than this one...I see quite a few Realtors use this poor strategy.

 

The Question:

Hello Jeffrey,

We loved your listing presentation and all the ideas you had to help sell our home. The question we have is can we list the home at 350k instead of 325k for the first month. If it does not sell we can lower it to 325k at that point. The other Realtor we spoke to said we can list at any price we choose for the first month.

Thanks,

John and Mary

 

My Answer:

Hi John and Mary,

The other agent is correct...it is your home and you can list it at any price you choose...however, I feel very strongly in my belief that over pricing a home is not in the best interest of my clients. The first three weeks of a listing is the foundation of my goal to sell quickly for top dollar. By over pricing the home for a month you miss your most important marketing window...And if by chance the home does sell it will likely not appraise for the sales price. I can not in good faith do what I know in my heart is not in my clients best interest.

if you decide to go with the agent who said it is OK to price at any number for the first month...I wish you good luck.

Jeffrey

The FYI:

The sellers went with the listing agent who over priced the home. After a month they dropped the price to 335k...30 days later they dropped to 325k...they just expired at 310k. 

Posted by

 

Jeffrey DiMuria

Waves Realty
Broker/Owner
2018 Melbourne Ct, suite 206
Melbourne, FL 32901

Phone: 321.223.6253         

e-mail:  Jeff@WavesRealtyFL.com 

Comments (25)

Eileen Hsu
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

Over price the first month is the kiss of death Jeff! Well answered.

Oct 10, 2012 06:35 AM
Danielle Garofalo
Founder at Noisecut Media - Manhattan, NY

Good luck to them is right, they will need it. One of the worst tactics out there is to overprice the first month. Great answer Jeff!

Oct 10, 2012 06:40 AM
Denise Hamlin, Broker/Owner
Cardinal Realty ~ 319-400-0268 - Iowa City, IA
Helping Happy Clients Make Smart Choices

Oh, the question we all love... Of course the house expired. Some people just have to learn the hard way. 

Oct 10, 2012 06:46 AM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

Jeffrey: Definitely get back to the seller now that's it's expired. But since it did not sell at $310 K, you can't even to back to the $325 K you suggested at the beginning of all this. Still, it's worth a shot. They should at least trust you now.

Oct 10, 2012 07:26 AM
Frank Iglesias
Working With Houses, LLC - Atlanta Real Estate Investments - Lawrenceville, GA
Atlanta, GA Real Estate Investor

The ever moving target of pricing always keeps things interesting.  Maybe the house isn't quite as good a deal as expected.

Oct 10, 2012 07:47 AM
Glenn Gurvitch
My Area Realty - Wellington, FL

Great post, as I go through the same scenarios with sellers on a daily basis. Thanks for sharing

Oct 10, 2012 07:51 AM
Michael Clarkson
Snow Coast Real Estate - Littleton, CO

It's amazing.  I want to hire you for what you know.  I sign with whomever tells me what I want to hear.

I had a prior client that I advised to sell at $433k.  They wanted $450k.  $433k was realistic for the market at that time (early 2009). They signed...but then told me I didn't know where the market was going.  So, they cancelled.

In November 2011, they sold for $339k, after relisting, starting at $389.9k.

The entire experience cost them about $100k.  (Oh, and my advice was to sell now and wait to purchase until the market reset.)

Doh!!!!  I probably got the blame...don't we all!?!?

Oct 10, 2012 08:25 AM
No Longer here

Real Estate 101; An overpriced listing » a stale listing » kiss of death for seller and agent.  Jeff, this was a great read.  I hope it reaches the intended audience!  

Oct 10, 2012 09:54 AM
Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Maybe they should have listed for 500k for the first month (LOL). SOmetimes the truth hurts, but just think how much they will respect you now....

Oct 10, 2012 10:15 AM
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

Jeffrey, "buying" a listing isn't always a good thing. Sellers need to realize that their house is worth what it is, not what they want it to be.

Oct 10, 2012 10:35 AM
Ginger Harper
Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

The first days that a house comes on the market is it's best selling time. 

You loose that edge if you price to high.

Oct 10, 2012 11:10 AM
Erv Fleishman
Realty Associates - Boca Raton, FL
Luxury Prop Specialist Realty Associates

Ask, do you want to sell the home or own the home. Because you are the only ones who will think it is a buy at that price.

Oct 10, 2012 11:59 AM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

Very wise choice Jeffrey.  I liked how you explained that the first 3 weeks is the foundation of your goal to sell it for quick and for top dollar.  Great post and congrats on the feature!  

Oct 10, 2012 09:26 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Yes, this is the question we probably all get.  I understand their point of view, but your answer is absolutely correct, Jeffrey.

Oct 10, 2012 10:20 PM
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Jeffrey - There is a big difference between trying to get top dollar for a home and flat out overpricing it. I will not take an overpriced listing and have lost listings because of this, but every time the sellers end up having several price reductions before selling or the listing expiring. 

Oct 10, 2012 11:48 PM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

More and more I;m seeing an important factor that is imperative for a successful listing. .

We are not appraisers. .we are real estate agents.

Omitting something can cost our clients several thousands of dollars . either way. .on dollars or in time wasted. .why not just ask. "Let's get an appraisal. .this is an important step for you. .I'm not an appraiser, let's get one!"

Oct 10, 2012 11:53 PM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes
It is so nice when I write a post and get such great feedback. Thanks everyone for the amazing responses
Oct 11, 2012 01:53 AM
Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-739-3843

Jeffrey, oh, the never-ending Price Saga! I do the same thing you do, couch it with the facts. I know my area really well and I tell the sellers that appraisers call me all of the time because I do the listings and the sales out here and know what I'm doing.

I found that my listings came in TWO DOLLARS OFF the average sold price--pretty accurate I'd say!

Oct 11, 2012 02:43 AM
Mary Douglas
United Country Ponderosa Realty, Red Feather Lakes, Colorado - Red Feather Lakes, CO
REALTOR, Red Feather Lakes, Colorado

It's painful to see it happen over and over...but it does. Congrats on the feature Jeffrey, and once the seller gets the higher price in their head,or decide to dig in their heels,  it's much harder to get them to the right price- sometimes, downright impossible.

Oct 20, 2012 12:51 AM
Monique Keith
Ahwatukee, AZ
Ahwatukeenulls Favorite Realtor, Buyers Agent with

When I advertise rentals I tend I tend to start high, but can tell within a few days if the number is unrealistic. I lead with the philosophy that we can always go down with price, but not up with rental. But rentals are a different beast then home sales. Home sales it is safer to go sightly lower then the cma's and let the multiple offers bring the price up.

Funny how fickle clients can be. 

Oct 23, 2012 03:26 PM