If you have uttered these words, "They can always make an offer" as a justification for not doing a price reduction, it is very likely that you are overpriced. Why? Let's examine this just a bit.
First a disclaimer of sorts. This may piss you off. I know. This conversation generally pisses people off. Most people are polite with me but I know they aren't loving these tough conversations. My dad doesn't have the need to keep it polite, and he clearly didn't like the frank nature of our conversation as we discussed his overpriced home. But, if you hire a good Realtor, you'll have someone that's willing to have the Tough Talks. It's not a service otherwise.
The reality is that these words are nothing more than a way to justify pricing on an overpriced listing. The truth (especially in today's climate): no one writes offers on overpriced listings. They just don't.
But why? Several reasons, but for the purposes of this conversation, I want to ask you to be the buyer. As a seller this is tough but really try. Be the buyer for the following scenarios and don't sneak in the way your situation is the exception to the rules. Trust me, it's not:
- I've seen 10 homes today. Some are in rough shape. Bank owned. Short sales. There were a couple of traditional sales I liked but they seemed high. If they were realistic, maybe. But, I'm not in a hurry. I'll just watch them to see what happens. In the meantime, something else may come up that's more in line with where the market should be.
- I'm torn between a couple of homes I looked at today. There was one that priced a bit higher than the others. It definitely was the nicest but I'd rather buy one that is cheaper and put in the finishes that I want.
- My agent told me that there is a house that meets my criteria perfectly but it's priced just over my budget. She thinks we should take a look - maybe they'll come down in price. I just don't want to stretch. There's plenty to see and I don't want to stretch my budget, especially in this market.
- I love this house but it seems priced too high. They must not be that motivated to sell.
- I love this house but there are others in this area that are less money. Let's go look at those.
- This home has something that is tough to find (big yard, view) so I would prefer this one. I just don't want to pay (x) more for it. I think that if I can wait, there may be a bank owned home that will come on the market that might have a (big yard, view). Like I said, I'm not in a hurry.
I have heard some version of every single one of these remarks from recent buyers. Think about the nature of today's buyers. They aren't in a hurry. Many of them have been waiting on the sidelines for months, even years, for the market to come down. There is no hurry.
Relocation buyers are often opting to rent for a while. Years ago they needed to hurry and buy before they were priced out. Today, that sense of urgency does not exist. First time buyers are as careful and as selective as they come, getting advice from every source you can imagine - parents, friends, coworkers, media sources, all telling them to search for a 'good deal'. Buyers that have been on the fence renting, watch for the 'deal'. That opportunity is what gets them off the fence; otherwise they will continue to rent.
If you take that buyer perspective back to your own home, you will realize that, "they can always make an offer" will not bring you an offer. Be clear about why you are selling. If you don't have to sell and you have a long term plan to own this property - great. If you do need to sell - create a winning strategy that is in-line with today's buyer. Price it to be the best home at the best price. Good Luck.
Originally posted on Why Didn't My Home Sell?
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