Selling an Atlanta home? It's a good thing if you know what you are doing, and setting the right listing price is the first place to start. Recently in the Atlanta I've noticed listings that just sold within the last year for lets say 250K. The very same Atlanta home is now listed for sale at 475K. What? Yes, you heard it right! The current Atlanta home seller hasn't done one thing to the property to justify the new price. When the obvious is looked at closely by an experienced agent...reality is unavoidable! It is obvious that because the sales are so recent...that interior photos, and features can be compared. The last sales data and marketing information are all available. The previous owner was the one that installed the new kitchen, finished basement, and added in-ground pool and patio. The new owner did nothing but stage around the old decor. It is very obvious.
I may be missing something, but I've never seen appreciation like that in Atlanta even in good times. The neighborhood prices may still be +/- that same price range for a recent sale in a flat real estate market...and as a professional I'm at a loss to even fathom the logic. I wish I could say this was an isolated incident, but is is more common than I would like to admit. From what I've seen... these overpriced listings have a few things in common.
•1. They are listed with new agents with little or no experience.
•2. The homes were all purchased with 100% financing in one form or another.
•3. Some are agent / owner.
Perhaps the seller has watched too much TV and believes they can flip a home for a hefty profit. It may be akin to kids jumping out windows when I was a child from watching too much Superman...and believing they could fly. It simply isn't reality. Perhaps selling Atlanta real estate should carry a warning! "Please, do not try this at home, we are trained professionals."
My own thoughts are even if the Atlanta home seller were to get an offer, the home will not appraise, the seller will not negotiate, the current price will hinder any sale, and the seller will lose a year or more of marketing time before they come to there senses. At that point, the home price may move lower than the current price point. The reality is simple.
Because the seller purchased the home at market price, it means they will sell the home at a loss by the time the commission is paid, and negotiations are over. They purchased a home at the peak of the market, just as the market started dropping. It is the sellers problem. Not all investments increase in price, and many drop in value. Our stocks, bonds, and other material investments fall, and real estate is not exempt. The consequences are unavoidable, but losses can be pared if the sale of the property is swift and reality based. An agent that lists the home is an enabler, and too weak as a professional to tell the seller the truth. Other agents simply by-pass showing the listing because of the unrealistic price, and back at many real estate offices...the listing agent is the brunt of many jokes. There is a difference among agents. When you go to sell a home, whom will you hire?
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What a good example, Pricing the home should be done by a fully trained licensed professional.