Motivated Seller: Two Words You Will Never See in My Listings
If there are two words I think undermine a seller's position, they are "motivated seller." Nothing says, "Lowball the crap out of me," like motivated seller appearing in a listing.
Patricia Kennedy wrote a post today about the concept some seller's have of pricing high to negotiate down. If you haven't seen it, stop by and give it a read. It brought to mind my feelings on advertising the motivation of sellers, versus advertising the property.
Recently, a home that was nearly identical to one I had listed for $358,000 went under contract and sold for $340,000. I say nearly identical because while both homes had the same floor plan and backed to the same undesirable power line easement, the one that sold for $340,000 actually showed a whole lot better 
than mine. When we got an offer at $350,000 I was so happy. A buyer saw the home beyond the custom paint and decor and was willing to pay $350,000.
Was the market that much different? No. It was a matter of a couple months between one sale and the contract coming in on my listing. So when meeting with the appraiser I had to show them why our home was woth more.
Naturally, when I showed him the recent comps, he said about the $340,000 home up the street, "Yeah. I saw that one. Exact same house, right?" Uh-oh. I know where this going. "Why do you think they sold $10,000 lower than your contract is for?"
I handed over my comp with two words highlighted. MOTIVATED SELLERS! Just like that, all caps and an exclamation point. My reasoning, which I shared with the apprasier was, "Why did a buyer feel they had to make a list price offer (which would have been $349,000) with those words there?"
Sure enough, the appraisal on my listing came in at contract price of $350,000. Did the words "motivated sellers" cost the sellers up the street? I think so. And that is why I will never put those words in my listing.
If you are truly motivated to sell, pick a fair list price. Pricing too high and telling your agent to go get offers is not good for your bottomline. Don't instruct them to tell folks you are motivated. Of course you are! You're house is on the market for sale. If you aren't motivated, you must be some sort of masochist that enjoys the pain in the rear of keeping your house neat as a pin for showings. Having to make beds, do the dishes and vacuum every day is not my idea of a good time. Price your home right and let the market do its thing. Advertising your "motivation" instead of a fair list price can cost you.
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