Are there homes for sale in Wayne & Pike County that are overpriced? Yes. There are homes around Lake Wallenpaupack that are listed a good $20,000 to $30,000 (or more) above the prices of similar comparable homes
that sold. There are homes that are priced properly, as well. But the properly priced homes are not the focus of this article.
A while back, I wrote an article titled "The Market Doesn't Care." My point was to try and help you, my readers, understand that The Market is not emotionally attached to your home, it doesn't care about the things that YOU think add to the home's value. The Market only cares about the cold hard facts - what buyers paid for homes similar to yours.
I met with a potential seller previous to writing that blog. He had a beautiful home with a nicely landscaped yard, custom tile and hardwood...but no garage and no basement and only 1.5 bathrooms. Because he had poured so much of himself into his home, he believed that it should be worth at least $425,000.
It was difficult to tell him that the homes selling for that price had two car garages and full, finished basements, with another bathroom and more bedrooms beside. Homes similar to his were selling for about $319,000 or even less. I showed him the comps - I printed them all out for him to see in black and white. I suggested that if he didn't have to sell right now, he should wait for some of his competition to come off the market. If he wanted to sell in the current market, then the price would have to reflect what The Market was telling us.
He thanked me for my time, and said he would probably wait until next year to put it on the market then.
Imagine my surprise a week later to see that very house come on the MLS, listed at $425,000.
As I predicted, the home just sat.
Some agents will tell sellers what they want to hear just to get the listing. Sometimes the agent is really ignorant about the market and has no idea, but usually they take the listing hoping to get the seller to agree to a price reduction later. Some agents are up front about this - they will say "I'll take your listing at the price you want, as long as you agree to adjust the price in 45 days if we get no interest..."
Unfortunately, pricing your home high to begin with and coming down later really ends up working against you. Buyers who are looking in the area keep an eye on new listings and they also keep an eye on MLS numbers and are pretty savvy at guessing how long a home has been on the market. A huge price reduction may stir up some interest, or it may raise red flags: "What's wrong with this home? Why has it been on the market so long? Why is it now $50,000 less than it was two months ago?"
Interest in your home is at its highest level when it first comes on the market. This is the time to nab the buyers who will most likely buy your home. Pricing your home too high will bring in buyers who are expecting MORE from your home than it can deliver, and by the time you price it for your target buyers, they know it's been on the market for months and your home is "stale." They may think you are desperate, and offer a very low price, or they may say "Well, let's wait a little longer and see if it comes down more."
Some sellers think that agents who price homes within the market are just trying to low-ball it so they can get a quick sale. Well, that's just silly. If I know I could sell your house for $250,000, I'd be an idiot to tell you to list it at $199,000 so I can get my money quicker - I stand to make MORE money if your home sells for more...don't you think it would be in my best interest as well to get you the highest price?
I shoot straight - I'll tell it like it is. I don't make things up and spout off flowery speeches to tickle your ears and tell you what you want to hear. I back up my statements with the data from the MLS - the market does not lie.
So before you accept someone's suggested list price for your home ask for facts that will support it, unless you want your home to expire unsold, and sit on the market for months and months...if you want to sell your home, price it according to what The Market is telling you.
I'll close with a success story. My buyers just put a home under contract in Wallenpaupack Lake Estates. I've been looking for the perfect home for them for some time - it didn't appear to be possible to find exactly what they were looking for in their price range. Then a new listing came on the market - incredibly, it was a great price.
Was it a steal? No...it wasn't a steal. It was priced at fair market value.
The listing agent was smart and obviously had a really smart seller - because two weeks after it went on the market, we had it under contract.
So while other sellers are waiting for someone to "make an offer" on their overpriced homes, this seller is making plans to move closer to her family in the time frame she wanted.
Pricing according to The Market works. If you want to wait six months, a year, two years - go ahead and overprice it. But if you want to get it sold, then price it right to begin with!
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