I had a discussion with some Sellers last night about maybe helping them sell their house. Their house has been listed for well over a year; then the listing expired and they re-listed with the same agent, then ultimately withdrew the listing a few weeks ago. They have been trying to sell privately/FSBO since then. They really want to sell their house. But, they really want to squeeze every penny out of the sale, too. I understand their position. Nearly everyone selling a house wants a good deal and they want to maximize their profit. My market is Central Florida and the house I am talking about will be bought by first-time Buyers who need some or all of their closing costs and down payment paid for on their behalf. No one else would be interested in this house b/c it's not big enough for a "move-up" Buyer and it's not cheap enough for an investor.
This couple's particular real estate situation has some pros and cons. The pros are that, while they bought their home in the past few years, they actually have equity if they price it and sell it near to what it needs to be to sell. The house has all the major systems upgraded, with the exception of the electric but everything seems to work fine. They basically have a 3 BR, 2 bath home, which is what people want to buy. They are positive and up-beat about selling. The cons are that this house is really a 2 BR, 1 bath house that the previous owner adjusted by bumping out another room and placing a full bath in the utility room. That particular room's flooring is not graded the same as the concrete slab for the rest of the house (you must step down), so the floorplan is a little weird, but there is ductwork for the A/C and heat to this extra room, which is a must in Florida.
I have several concerns for selling this home. The main thing is that the price range I told the couple to list/sell the home at is fair and reasonable (and just slightly less than what it didn't sell at previously). I take the advice of Broker Bryant Tutas and don't tell people what their house is worth; I merely tell them what it's going to take to sell their house in this market. The couple could sell and net a goodly amount of money from the sale of the property, even with giving some major concessions to a Buyer. But--they want more. Geesh! I'm good but if I wave my magic wand, nothing happens b/c NOBODY can sell a $1 bill for more than a dollar. Their house IS what it is and no Buyer in their right mind is going to walk through their door and OVERPAY for their house. It simply will not happen.
If anything, Sellers in my market today need to think CONCESSION, CONCESSION, CONCESSION and hope and pray that bi-weekly price repositionings and Seller concessions to the Buyer will sell their house. We have roughly 25,000-26,000 homes for sale and about 1,000 wind up closing per month. What that means is that for Sellers in my market for homes that are in the first-time Buyer range ($100,000-200,000), they simply MUST price right, give concessions, or stay put and don't move. Otherwise, it doesn't make sense to waste everyone's time, energy, and money.
So, to wrap up: I say a home is a "listing" if it's not priced right and the Seller doesn't HAVE to move. I believe you are working with a "Seller" when the owner listens to you as a professional real estate agent, makes a good decision about the right price, and also gives concessions to help Buyers into properties, if necessary. After all, we agents are the professionals. We do this full-time. This is our career. The Sellers typically move every 5 years or so and a lot changes during those years. They need us to be honest and tell them the truth about the market (it's our ethical duty, if we're REALTORS) so they can make good decisions for themselves and their families.
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Never thought about it that way, Lisa. In an ideal world, we just wouldn't waste our time (and loose money) taking listings that won't sell.