It seems we have come to a crossroad of two kinds of home sellers--- the ones that are facing the housing market straight up and pricing their homes to sell and the others who are simply ignoring the facts and digging in their heals.
Now, we can talk about this subject til the cows come home, but I'd rather cut to the chase and make things happen. The problem is everyone in the media is an expert in real estate and whatever position you take, it is human nature to tune into people who say what you want to hear.
Although, if you are like me, we need to become better informed on how to tell people that their house is not worth alot more than what the market is calling for.
We need to take a lesson from Walmart, "Low prices are one of the surest ways to beat the competition". Called ``drama pricing" or ``energy pricing," it is a drastic measure for difficult times. Although, your clients will be disappointed, we must share the information of other competitive listings and sold inventory that are seen by consumers as a perception of value. That is human nature.
The experts tell us to lay out the facts on how tough it would be to sell at the suggested owner's listing price. However, we must adhere to the rules and ethics as Realtors and understand the bottom line is the owner's decision.
All, we can and must do is educate them. And I must admit, I need to brush up on my skills.
The point is if you start too high, buyers forget about your property -- it doesn't matter how beautiful it is. As a home seller, you may prefer to wait out the market, if you don't really need or want to sell. Now, some agents won't agree with me, but I just think the more inventory we have of homes, the harder it is for everybody. Especially, the sellers who need to sell.
Today, we must focus on what is not selling and persuade our sellers to look at the prices of active listings that are indeed selling.
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County
This goes back to what I call "Sellers" and "For Saler-rs". They need to hear the truth from us!
Apr 04, 2008 02:35 AM
HomeStarr Realty Inc. - New Hope, PA
Associate Broker
I guess it's really just going to come down to motivation of having to sell. I've seen quite a few sellers just "dig in their heels" and start "rejecting" after getting a low ball offer. And, eventually , the buyer came around when the same thing happened to them a few times. While not the norm, I've seen that happen quite a few times in the last several months. I think it's just going to come down to the local markets and how bad the sellers want to make a move and how bad the buyers want to get into a home. Good topic
Apr 04, 2008 02:38 AM
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes
Here is one thing we shouldnt take from walmart though is the number of pricing. They like to do 4.98 or 5.74 because it seems much cheaper then competitors. However in real estate I find it beneficial to clients to price things evenly $200,000, $225,000. Which doing a home search their home would come up in both search criterias of $175,000-$200,000 and it would $200,000-$225000. But if you did $199,900 it would only come up with 1 search. Dont follow the crowd be a leader.
Apr 04, 2008 02:41 AM
Royalty Home Solutions - Madera, CA
"We Treat You Like a King"
Camille. That was a good post. You are telling the truth. What is their motivation in selling? Is there only one reason that they are selling? Thanks, Royal..
Apr 04, 2008 02:43 AM
RE/MAX Gold Coast REALTORS, Ventura County, California - Ventura, CA
No Ordinary Joe
As real estate pros we need to be able to analyze the comps, figure out where the price should be and communicate it honestly with he seller. Even if we don't get the listing we need to tell the truth. It's better to have a seller mad at it you now. A few months after he closed (or sooner) he'll ascribe Houdini like powers to you because you helped him escape as he watches his less fortunate neighbors struggle. If you don't give them the facts now, they may like you temporarily, but down the road, they will blame you.
Apr 04, 2008 02:47 AM
Prudential Verani Realty - Epping, NH
One of the guys from our company sends us tid bits all the time and a great one came on pricing homes and dealing with sellers objections. I will find it and email it to you.
Apr 04, 2008 02:50 AM
O'Donnell Properties - Queenstown, MD
Dear Gary, Brian, Amie, Joe, Heather and Royal Goodman Group,
Thank you all for the feedback....I suppose we are all having to put on our creative hats and look beyond the gloom and doom and like Joe said If we are not honest with our clients- it will come back to bite you in the butt.
Amy, thanks for the tidbits- I will use some of them with my sellers who are getting sooooooooooo impatient and throwing their hands up.
Heather, I like your thinking about the pricing range to make sure we don't get lost in the shuffle.
Apr 10, 2008 03:12 AM
Annapolis Plaza CB Residential and Commercial - Annapolis, MD
Annapolis, AA Co., Md. Real Estate Sales
Camille, Excellent post! This is a time where we professionals need to reveal all the data to our sellers and show them how appropriate pricing in this market is moving properties.
Jun 17, 2008 05:01 AM
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