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I am sorry, your neighbor's home is OVERPRICED!

By
Real Estate Agent with Veracity Real Estate Group, LLC

I have done my fair share of listings and listing presentations and always seem to hear the same objections. 

 

As price conscientious shopper, nickle-pinching family member and overly compulsive REALTOR- I take pricing my listings very seriously.  I do the standard first step of typing the address into the mls system and printing the comp page, but then start reliving hours of stat classes and start diagramming, calculating and bell curving.

And, with a notebook filled with pricing research and calculations I always here-

 

But my neighbor's house has been on the market for _____ months for $________.  Mind you the neighbors house is always much more than what I suggest selling the house for. 

And why?  Your neighbor's house is overpriced!  Had they invited me over for an interview and believed my pricing theories you would have a new neighbor by now.

So again I would like to take a minute to remind anyone looking to price their house for sale- look at sold homes in the area to determine what someone will probably be willing to pay for your house, and look at other homes on the market as your competition and what you need to beat!

Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Only sold comps have any value.  What other properties are listed for are just an estimation of value and I remind my prospective clients of that over and over again!  I used to live in Ahwatukee in the Executive Series :-) off of Warner Loop on Coconino Street. 

May 18, 2008 11:02 AM
Barbara Carter
Century 21 Alliance Realty Group - Highland, NY
Serving Your Real Estate Needs in the Hudson Valle

This is so true, Dawn. Very important reminder for sellers when pricing the home for sale.

May 18, 2008 11:08 AM
Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552

Anyone can ask any price for their home.  If the neighbors' house has been for sale for a long time, that should tell them something right there!

May 18, 2008 11:09 AM
Dawn Workman
Veracity Real Estate Group, LLC - Camas, WA
Camas Real Estate Expert, MBA, 480-540-8100

Cindy, my former neighbor- Dead on!  I have a house closing there later this week- on Kachina. 

Barbara- Thanks!

Brian- I agree, but I think when people become desperate and see the home values going to scary low numbers they just don't want to think rationally.  Somethimes I think sellers briefly think the longer the price has been 'set' the more realistic it is.

May 18, 2008 11:14 AM
Kay Perry
Kay Perry, Broker - College Station, TX

Sold properties are what I use.  I am very familiar with my neighborhood and know what other houses sell for and the asking price of other active listings.

May 18, 2008 11:24 AM
Dawn Workman
Veracity Real Estate Group, LLC - Camas, WA
Camas Real Estate Expert, MBA, 480-540-8100

Kay- me too!  I do look at what is currently available as well to compare to though. 

May 18, 2008 11:28 AM
Anonymous
Michele Reneau, Charleston, SC relocation expert

Sold properties are what we have been taught to use and is a must, however, in a market of oversupply, I also use active properties to show sellers that they must be in the top 5 on pricing b/c the actives are your competition. My job is to get the seller where they want to go on time and overpricing is a good way to be late.

May 18, 2008 11:44 AM
#7
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL

Dawn - Great Point!  I love when sellers tell me so and so's house is priced at....  Well the last sale is what matters not a house that has been lingering on the market for months.  Great post! 

May 22, 2008 12:46 AM
Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

Right on Dawn.  You can price a hoouse wherever you want, but pricing it correctly will determine how long it sits on the market.

May 22, 2008 02:06 AM
Bart Whitmore
Keller Williams- Louisville - Louisville, KY
Real Estate Agent

What is the old saying do you want to price your home to sit or to sell?

May 22, 2008 06:40 AM