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Maybe this can shed some light for sellers dealing with REALTORS

By
Services for Real Estate Pros with And the United States of America AZ SA543893000

trustNow is the time for each and every seller to ask themselves, "Did I choose the right agent to sell my home?"

 

Selling a home in a difficult market can be tough.  How often are sellers getting in their own way?

Look, unrestricted lockbox access increases the likelihood that your home will be sold since agents won't have to jump through hoops to show it.  Restricing access will greatly diminish the number of showings you'll have.

This morning, I just saw a listing hit a client's search parameters as a price reductionI went and previewed this property about two weeks ago.  It was on the market for $229,000.  My clients didn't want to spend more than $195,000 for a home.  I previewed it anyway since it had a pool and was the exact, EXACT same floor plan of a home that they didn't get when they were outbid in a three week process.

 

Why didn't they make an offer on it anyway?  - The $229,000 price scared them.  There were three other EXACT MODEL MATCHES that were priced below $200,000.  All three went under contract.  My clients would have easily paid $190,000 to $195,000 for this home, CASH.  They really wanted to move!  They were worried about whether or not the seller would settle for a price in the $190's so they didn't feel comfortable making an offer.  LOSE-LOSE

EVERY EXACT COMPARABLE on the market sold for less than $200,000!   It was painfully obvious that the subject listing was overpriced by $20,000 to $30,000.  Sure it wasn't a short sale or REO but I doubt there was an agent that would miss the mark by that much!  How do I know about every other comparable?  The same way I know that there are 6 of this model in a two square mile radius that are in default!  My clients liked loved the floorplan so much that I was tracking potential short sales and foreclosures for them...

They fell in love with something else!

 

don't hold your breathToday, this listing sits at $190,000.  THE "OWNER WANTS SOLD" comment is even in the MLS report.  Maybe the owner should have wanted this sold a couple of weeks ago and had it priced accordingly.  If so, my clients would have picked it up.  Instead, they paid cash and closed on a home last Thursday.  I can only imagine how the sellers insisted on a $229,000 price.  BIG MISTAKE!

Sellers, trust the professional that you hired!

  • If they tell you to keep the air on cold, trust them.
  • If they think that unrestricted access is important, figure out how to do it.
  • If they're willing to do an open house, let them.
  • If they tell you that pricing has changed and a price cut is in order, do it or counter argue or expect your home to sell whenever the market gets around to seeing value in your house.
  • If they suggest staging, get it staged.
  • Needs work, get it done.
  • Clean off the counters, remove family photos, clean the closet, clean the front door, plant flowers, keep the interior spotlessly clean

Do what you can to sell your home or get a lawn chair out and watch your neighbors sell their home first.

Posted by

Mark Organek

RE/MAX Excalibur

mark@monopolyman.com

www.monopolyman.com

Thank you for taking the time to read this post.  Hopefully one day we can interact or meet soon.

Comments (11)

Vickie McCartney
Maverick Realty - Owensboro, KY
Broker, Real Estate Agent Owensboro KY

Mark~  It is too bad that some sellers just want to do it their own way and don't trust their Realtors judgement from the beginning.  It is an expensive lesson to learn!

Aug 25, 2008 03:49 AM
Mark Organek
And the United States of America - Mesa, AZ
It's not a game, it's your life.

Vickie - No kidding!  This home would've been purchased by my buyers for more than the current list price.  Unfortunately, three exact model matches closed in the low $190's and now these sellers are competing with a few new short sales and pending REO's.  Costly mistake, expensive lesson.

Aug 25, 2008 03:51 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Wow Mark, you really covered that subject. I am always amazed at the way a seller thinks or forgets to think. If a lawyer tells you something, people jump. If an accountant tells you something, you pay. If a Realtor tells you something, you ignore them and do as you please until your plan fails and you blame the Realtor...

Aug 25, 2008 03:52 AM
Mark Organek
And the United States of America - Mesa, AZ
It's not a game, it's your life.

Paul - The sad part about the whole story is this home will probably drop another 10% in value by the time it is sold.  The sellers REACTED to the recent sales and lowered their price to the new plateau instead of trying to sell quick.  I'll be curious to see whether or not they get over $180,000 for the home.

Aug 25, 2008 03:55 AM
Patty Carroll
Vancouver, WA

This is a great post. We are finding that a couple of homes that we listed need to be lowered due to recent sales in their area but the seller will not consider lowering their prices. This makes it tought to get the home sold in todays market.

Aug 25, 2008 03:58 AM
Mark Organek
And the United States of America - Mesa, AZ
It's not a game, it's your life.

Patty and Scott - I put the post out there for sellers to read.  As I commented for Paul, since the sellers only reacted to the new comparable sales amounts, they are still going to trail the market at $190,000.  They're on a small lot three houses up from a busy street.  They should've dropped into the $180's so they could move it.  Otherwise, when the REO's and short sales hit, they're going to have it tough.

Aug 25, 2008 04:01 AM
Mesa, Arizona Real Estate Mesa Arizona Realtor
Homes Arizona Real Estate LLC - Mesa, AZ
AzLadyInRed

Mark, this is an EXCELLENT post. I've been thinking about putting something like this on my website as well as a scenario for buyers - explaining just what the Realtor does - drive them around - show them umpteen homes, etc. The public really needs to become educated...posts like this definitely help. Good job. :-)

Pepper

Aug 25, 2008 09:08 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Mark, I get the bulk of my listings from expired listings. What I have found is that most sellers do take their REALTORS(R) advice. The problem is they are getting bad advice. I'm always shocked at how many sellers I meet with that have never even seen a CMA!!! They just say this is how much I want and the listing agent says OK. So maybe it was the seller but maybe it was bad counsel.

Aug 25, 2008 10:18 AM
Mark Organek
And the United States of America - Mesa, AZ
It's not a game, it's your life.

Teri - Thank you for stopping by and commenting.  I was just feeling sorry for the agent that is trailing the market on the property.  We do need to educate clients and they need to be receptive to our advice.  Thank you for the compliment.

Bryant - Excellent point!  From your experience pulling listings from expireds, I'm sure you see many overpriced listings.  You bring up a great "other side" possibility to the story.

Aug 25, 2008 10:29 AM
Doreen McPherson
Homesmart ~ Scottsdale ~ Tempe - Tempe, AZ
Phoenix Arizona Real Estate ~

Mark, It's unfortunate that there are still agents taking over priced listings.  I think if we all said no to it, the sellers would realize the truth.  The thing that bothers me most is how many of these sellers end up selling for much less than if they had priced properly in the first place. 

Aug 26, 2008 04:40 PM
Linda Le - Hawaii Loan Officer
Pacific Access Mortgage - Honolulu, HI

I'll never understand why a seller would hire an agent to list their property and not trust what they say or work with their agent to get the property sold.  If your agent tells you to take down the person pictures, do it.  If they tell you to clean up your place, do it. 

Aug 30, 2008 09:33 AM