Special offer

YOU WANT HOW MUCH FOR YOUR HOUSE!!!!!!!

By
Real Estate Agent with Southern Homes of the Carolinas 254679

Recently we had an encouter with a client who had decided to sell their home.  This custom home had lots of great features.  However, it was located in an area that had not sold many homes in that price range, school system was not the most desirable and the neighborhood had no ammenities.  This homeowner loved their home and felt that they should be able to sell it for "  the amount they felt was reasonable" .   When asked where they came up with their price, they told us that this is what they think the house is worth.    "PRICE PULLED OUT OF THIN AIR". 

Boy would I love to be able to do that.  Decide on a price to sell a house  for and it magically becomes worth that price.  You see.... homes will sell.. for what the market is willing to pay.  No matter how much you disagree..... the market will set the price....

The value of your home is directly related to the market and conditions surrounding the home.  It would be so nice if we could have enough control to change the market, but it is driven by stronger powers than myself.

This client listed their home for the price they wanted, upset that the price they wanted last year did not work either.  (They were almost $80,000 more then).  The home was advertised on MLS.  Pictures were taken and posted.  A professional tour was created...

Months later... NOT ONE SHOWING!  OVERPRICED! 

You see, it does not matter how beautiful and fantastic your home is... if it is OVERPRICED it will  not sell.  In this case, it was so overpriced it never even had a showing.  The client blamed it on the photos.. He did not like them.   The fact was that statistical data showed that the pictures were never even viewed. Once the potential client got to the main picture and information, they moved on. 

It is important to listen to your Real Estate Professional.  Believe me... it does us no good to underprice a home.  It sells but the seller and the agent loose money.  Pricing a home right involves lots of different data to be gathered and then based on the market the price is determined. 

Adjustments may follow based on the market conditions every changing climate. 

Work with your agent and listen to their advise.  If you have had no showings or have had 10-15 showings without an offer.  You have to look at the PRICE.

Good luck to everyone working to price homes accurately....

Posted by

    

Sarah Moore, CRS, CDPE, SFS, e-Pro, Broker/REALTOR ®

RE/MAX EXECUTIVE REALTY  ~  7752 Gateway Lane, Suite 204  ~  Concord, NC   ~  28027

www.WeOpenMoreDoors.com

 

Jon Wnoroski
America's 1st Choice RH Realty Co., Inc. - Green, OH
Summit County Realtor

Hi Sarah, this is an issue we all deal with more frequently than we'd like to.  There are many problems associated with pricing a home too high... most frequently it will not sell because buyers are more savvy than ever before given the Internet resources available to them.  In time, the agent gets blamed and the seller moves on to the next agent for much of the same.  I have tracked homes that I have listed based on the price the seller wanted to list it for as well as those listings I walked away from because I felt their asking price was too high.  They always are on the market for a long time and rarely sell.

The other issue you will face is if a buyer does come along and is willing to pay the list price (or close to it) and the bank appraisal comes in lower than what is offered, the buyer will have financing issues.  The seller will either have to come down in price or the buyer will have to put money down that will bring the financing level in line with what the lender is willing to do.

It seems like a "no win" situation to me.

Jul 29, 2008 02:06 AM
David Slavin
Keller Williams Premier - Katy, TX
CDPE, ABR, SRES Keller Williams Premier

Some sellers just aren't motivated to get their house sold.  They need to understand that they are hiring us for our knowledge of the market as well as many other reasons.  If they won't listen to the market facts then let the competetion deal with them and wait for it to expire and meet with the seller at that time.  They might be willing to listen now.

Jul 29, 2008 02:58 AM