A question people try to avoid, especially home sellers. Before I tell you my thoughts, here is the scenario. A home is listed. The seller insists of listing at an amount higher than all sale comps in the area. For those non agents, a comp is a home that has sold in the last 6 month's or a home for sale, usually within the same or similar neighborhood as the home for sale. It should be within 20% in size, 20 years in age and be of a similar style and condition. We add or deduct for upgrades or repairs.
Here in the Manchester NH area, there is a shortage of homes for sale in some areas, so those homes that have sold carry a greater weight to base price and or value on.
The questions are how long to you wait to lower the price? How do you know it is time?
So this luxury home is listed. There are very few comps in this small upscale town. Using comps from similar surrounding towns are necessary. The homes that sold show us what the home will most likely sell for and what we should ask.
The seller insists on listing it higher than any home this size in town. It has some features and upgrades that no other home for sale has.
I let them know we can sure try the higher price. That in my business I use a "splash marketing" program that splashes ads and marketing everywhere to reach potential buyers. In most cases within 2 weeks I know if the price is too high based on conversations with those inquiring about it. I let them know we can try the higher price, but should reduce the price if the market deems it "too high."
How do we know if it is too high? How much time do you wait? Those are both questions from, most sellers. The easy answer is if you have a limited amount of showings, you may be too high. Most important is the comments from those who have seen it. We have had a slow but steady flow of showings with out any offers.
I like to track the showings and two of the buyers bought other homes in town which were larger in size and lower in price. Right there tells me we are over priced and the price needs to come down.
The seller has chosen not to reduce the price despite the facts. We can discuss "timing the market" in an upcoming blog. Which means simply what time of year you list. Our fall market rivals the spring market but runs September and October and sharply comes to an end when we approach Thanksgiving. Waiting to put the home on the market, missed them the fall rush.
The moral of the story is that a home seller needs to work with the listing agent, not against them. We all know that there is a difference from agent to agent. That a Buyer or Seller should not choose just any agent, choose the BEST agent for the job. The key to this story is take the advice of the professional if you want to sell your home.
My philosophy is simple, provide more personal and professional service to guide my clients through each step of the buying or selling process. All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. Those that hire me, find a dedication like no other.