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Can we list it high and just test the Fort Wayne real estate market?

By Amanda Christiansen

Real Estate Broker/Owner with Christiansen Group Realty (260)704-0843

August 21, 2013 03:20 AM

The simple answer to this question is YES. Yes you can list your home high and just test the Fort Wayne real estate market.

The smart answer (in my humble opinion) is NO.

Amanda and I went to a listing appointment recently. We arrived, met the sellers, and toured the home. It was a beautiful home in a very nice subdivision in Northwest Allen County.

As we sat down to discuss our marketing plan and the real estate market, the seller went right to price.

"I'm thinking that we should list the home for $300,000. Let's test the market. Let's see what happens! What do you think?"

Well, we thought knew that $300,000 was WAY too high for the home in that area. Our market analysis and knowledge of the area showed that the home should sell in the $225,000 range. We recommended a list price in the $240,000 range.

The seller again said that he wanted to start at $300,000, just to see what will happen over the 6 month contract. We broke down exactly what will happen if we list it at $300,000.

1. It won't sell at that price. (Of course we showed him the market and explained why.)

2. It won't get shown. (Other Realtors will see just how high it's priced and realize the seller isn't realistic.)

3. The sellers will get impatient because it's not being shown. (They they'll start harping on us for not selling their home.)

4. If, for some reason, a Realtor was dumb enough inclined to write an offer anywhere close to $300,000, it would never appraise. (Appraisers see the same market that we do, and this is a common home in a common subdivision.)

5. After our 6 month contract is up and we've had zero showings, the seller will then realize that it's over priced. He will then call another Realtor (because we couldn't get the job done) and will then price it where it needs to be priced. Then it will sell.

We left the listing appointment on good terms, but we didn't get the listing. That's okay with us. We'll re-visit this seller at the end of his current 6 month contract with the Realtor that did list it for $300,000. Maybe he'll listen to us then. :)

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Kathy Stoltman

Ventura, CA

RETIRED

Good for you for walking away. Do they want to sell or just test the waters? Testing the waters never works for me.

Aug 21, 2013 03:37 AM

Kelly Cherry

Keller Williams Preferred Realty - Raleigh, NC

Keller Williams Preferred Realty

It's always interesting to me when sellers want to go with the price they believe is the right price vs looking at your data or your experience in situations such as this in the past. I'm running into that situation with a client who has asked me to iist their home but then prefaced they won't accept below a certain price, however, no other home in the subdivision has sold for that price in 8 months. Sometimes it is best to step back and let them realize it on their own.

Aug 21, 2013 03:51 AM

Carla Muss-Jacobs, RETIRED

RETIRED / State License is Inactive - Portland, OR

Testing the market . . . ha ha ha. The market will surely 'TEST' them! This isn't an e-Bay auction. If the sellers are serious about selling, they price it accordingly, and don't play games with buyers, list agents, buyers agents. Interest rates -- hmmmmm . . . wonder where they will be in 6 months time?

Aug 21, 2013 04:35 AM

Amanda S. Davidson

Amanda Davidson Real Estate Group Brokered By Real - Alexandria, VA

Alexandria Virginia Homes For Sale

Jared, you and Amanda are smart to walk away but, remain on good terms. They'll be calling you in 6 months when it doesn't sell. That's a huge gap in where it should be priced and where they want it priced, not worth it!

Aug 21, 2013 04:36 AM

Wanda Kubat-Nerdin - Wanda Can!

Red Rock Real Estate (435) 632-9374 - St. George, UT

St. George Utah Area Residential Sales Agent

Jared, A horrible marketing strategy in my opinion unless you're just collecting listings and do not mind missing your sales window! Some sellers will never learn, sad to say.

Aug 21, 2013 05:07 AM

Nick T Pappas

Assoc. Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, Broker/Providence Property Mgmnt, LLC Huntsville AL - Huntsville, AL

Madison & Huntsville Alabama Real Estate Resource

Amanda & Jared, yes you have summed it up pretty much the way it will go. Not taking the listing is in my opinion the wisest course of action unless after the first month of no showings and no offers the sellers agree to get realistic with the list price.

Aug 21, 2013 05:08 AM

Jay & Michelle Lieberman

Keller Williams World Class - Agoura Hills, CA

Creating Calm in the Buying and Selling Chaos

I hate that. I really try to talk my clients out of reaching for the stars and coming down. Real estate is not a pawn shop negotiation of starting 100% higher in hopes of getting 50%.

Aug 21, 2013 05:16 AM

Jane Peters

Home Jane Realty - Los Angeles, CA

Los Angeles real estate concierge services

Good for you. There have been a couple of articles lately talking about whether to price a home high to get close to the desired price. For heavens sake, how about pricing it at market!

Aug 21, 2013 05:51 AM

Sharon Tara

Sharon Tara Transformations - Portsmouth, NH

Retired New Hampshire Home Stager

Some sellers just have to learn the hard way. Your prediction of what will happen is pretty accurate as far as I'm concerned!

Aug 21, 2013 06:09 AM

Tammie White, Broker

Franklin Homes Realty LLC - Franklin, TN

Franklin TN Homes for Sale

Jared, I love the last clip when the buyer said you were casual which made them feel comfortable during the process. I think that is the nicest compliment anyone could ever pay you. As we know, the buying and selling process can be very stressful. If our clients feel comfortable with us through the process, then the experience is much better for everyone concerned. Great video testimonials. It's obvious you go above and beyond for your clients.

Aug 21, 2013 11:05 AM

Bryan Robertson

Los Altos, CA

Once that high price is on the table the listing is tainted and buyers will steer clear of it, even when the price drops. At least that's what happens here.

Aug 21, 2013 11:48 AM

Sussie Sutton

David Tracy Real Estate - Houston, TX

David Tracy Real Estate for Buyers & Sellers

I think you did the right thing by walking away. I would have done the same thing.

Aug 21, 2013 01:11 PM

Chris and Dick Dovorany

Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL

Broker/Associate at Premiere Plus Realty

Geesh sellers, do you want to sell or not. I might take it with their permission put in the MLS, all offers considered.

Aug 22, 2013 12:24 AM

Amanda Christiansen

Christiansen Group Realty (260)704-0843 - Fort Wayne, IN

Christiansen Group Realty

Kathy: I do believe they are just testing the waters. We'll see.

Kelly: Agreed. I'm sure there's an agent out there that will take the listing, just to have a listing.

Carla: But they won't be TESTING me! :)

Amanda: Agreed. It's not worth the headache when I know the end result already.

Wanda: I concur. I hope these folks do learn before it bites them.

Nick: This seller made it clear that he was in it (at this price) for the long haul. What a LONG haul it will be...

Jay and Michelle: I like that analogy. It might be a title of a future post! Real estate is not a pawn shop.

Jane: Right? It seems like a simple concept to me.

Sharon: I agree. These folks will learn the hard way.

Steven: Yes, I could work with those numbers as long as they were realistic and willing to come down in a month or so.

Tammie: Thank you so much!! We just had this one done a few days ago. It was humbling to sit back and listen to past clients all say the same things. We are very blessed. :)

Bryan: You know, that happens here too come to think about it. Good point!

Sussie: Right on. We are in this business to sell homes, not test waters.

C & D: I don't think these folks did want to sell. At least not yet!

Thanks for stopping by everybody. It's much appreciated!

Aug 22, 2013 03:53 AM