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Servicing will not sell an unsaleable home!

LET ME REPEAT THAT:

SERVICING WILL NOT SELL AN UNSALEABLE HOME!

This is one of the biggest things we need to understand as both real estate agents and home sellers. We as agents and sellers have to snap back to reality and realize that home prices have fallen and probably will continue to do so throughtout this year. I am one of the most optimisitc and positive people that you will find, however this is a fact and we need to stop trying to tell ourselves different.

My main point here is, if you are overpriced by $20,000 or more, there is nothing a Realtor can do as far as advertising, open houses, etc. You could put a 20 X 20 billboard on the AC expressway advertising your home and it would not sell. Then is only one solution to this problem, and that is to pull our a price reduction form and get the price adjusted to where it SHOULD be. You will be surprise as to the increase in activity once the home is priced right, and you will be sure when the price is right because you will be getting buyers in their looking at least once a week.

Realtors you need to understand this also. You are doing your clients a disservice by not being honest with them in fear of angering them. If you let the property sit on the market six months overpriced by $20,000 or more, at the end of the agreement you look like you didn't know what you were doing. Do not set yourself up for failure by taking an overpriced listing, you are only hurting yourself, and your client.

Sellers, if you can not afford to lower your price into the price bracket it should be in, then you are better off waiting till the market gets better. Please understand however that we as Realtors can only do our job with your help. We need the cooperation and for you to trust our opinion, we are professionals and we "do" real estate everyday.

Keep in mind in addition to SERVICING WILL NOT SELL AN UNSALEABLE HOME, that THERE IS NOTHING THAT THE RIGHT PRICE AND TERMS WON'T CURE.

Meet with your real estate professional today to discuss whether your price is right, and if it isn't make that price reduction and help yourself.

Posted by David Width Jr. on 03/05/2009 11:07 AM

Comments (26)

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26 Comments on Servicing will not sell an unsaleable home!

MAR

2009

Right you are David! And neither will marketing. No matter how beautiful the house is if the price is wrong it's not going anywhere. And you can advertise and market until the cows come home - it won't matter if the price is too high. We had a house in Cambridge that was probably in a dozen magazine and newspaper articles - but it sat and sat. Getting ahead of the curve on price is the only answer. Thanks for a great post.

Liz

I agree. I've seen many houses get listed for what sellers want because the sellers "think it is worth it" regardless of what the market is telling them. We are not in a one idea fixes everything situation but your advice is a step in the right direction.

Right on David! And I wish folks would stop saying we have to blow rainbows and butterflies up the skirts of our sellers so they think we are being "positive" about the market! I'm not running around saying "OUR market isn't affected" like some folks around town and that doesn't mean my attitude needs adjusting! EVERYBODY's market is affected to one degree or another and we need to SHOW our sellers what they can and should do to compete! Their goal is sell and our job is to get er done!!!!! When my listings sell and theirs don't all I can say is 'Who's the monkey now?'

Liz ~ I am glad we are on the same page here. Location, Location, Location is the old slogan of real estate. It is now Price, Price, Price.

Absolutely David. Any seller who does not understand this at this point in time has not been paying attention. Since most of our listings are short sales we do not have to contend with the sellers over price. It's the banks that still seem to have their heads in the sand (wanted to use a different analogy but decided to keep it clean). Once the bank and their investors understand that prices are declining maybe we can get this market cooking again. They seem to be coming to their senses. But it's like turning around a big oil tanker. It takes time. Good post and best of luck.

Spot on. I advise my sellers that if you do not have to sell, to wait. But if they must sell, the home has to be priced correctly, no matter what you owe. I for one, am not a n agent that will take a listing to just get a sign in the yard.

Dave - I admire your insight and the fact that you're not afraid to tell people what they need to hear. Not every client will listen, but those that do will meet their goals.

Zac ~ Thanks for the comment Zac.

Sarah ~ Right on. We like I said I am very optimistic, but I am realistic too. The market is not what it used to be plain and simple. Everyone needs to realize that.

Jerry ~ Exactly, we can turn this makret around and get sales going, once 75 % of the people lower their prices to realistic terms. It is the Realtors job to help them realize they need to reduce.

Doug ~ Good point. IF you can not afford to lower the price, then hold on to the property and wait 3-5 years and make it worth while for yourself.

Jason ~ If your seller chooses not to listen, send them two forms. I price reduction form, and a withdraw form and ask them to sign one of them. It may seem daring, but you are hurting both yourself and the seller by keeping them overpriced.

Absolutly right especially in today's market where there is soooo much competition.

David- I think I might forward this to one of my clients who is deliberating right now on whether to list her home with the lower price I've suggested, or with the "other" agent that is telling her what she wants to hear; that it's worth $30K more. Thanks for putting it so well.

Brenda Sours

Sky Realty

Pat ~ I know sellers think that everyone wants to bargain, so they think by pricing the property 20,000 plus over its value that it is a good thing for them. However, now these buyers are looking at homes really worth the value that the seller who priced their property 20,000 over is.

Brenda ~ I would be honored if you did that. You have my full permission to do so.

David, we're in a tough period right now. Even when priced right things move slow, making the pricing even more important. Good post!

Laura ~ Thanks for you comment and I am glad an agent like yourself has the same viewpoint as I do. Thanks again.

David - If more agents would "tell like it is" like you are here, folks would either have to price right or take it off the market. The best marketing plan I have to offer a seller is to be competitively priced. Bravo!

Alyce ~ Thanks for the comment. Your marketing plan sounds good to me. You can sell any home there is out there, at the right price.

Amen, Dave. It's all about the PRICE. All the lipstick in the world won't make a pig marriage material.

Tom ~ Thanks for the comment and I like the analogy.

Price is a key issue. One of the first things I learned during my staging course was that if the house is staged properly and doesn't sell it is the price. I prefer to work with agents who price realistically. Staging is becoming even more important in this market. Sellers have to realize that their home is now a commodity and must compete. Staging helps them present the best product they can to the buyers. As with any other product, once it is ready you have to price it right. Owners must realize that when a house sits on the market too long people begin to wonder what is wrong with it. A home in my area is just sitting there because the bank holding the mortgage won't let them reduce the price.

Janice ~ I would agree and say that staging can definently help the sale of the home, as long as it's cost-effective.

David you are right. Owners need to know what improvements will help them sell and return their investment. I was taught that you can invest 1% to 3% of the list price when getting a house ready for sale. If an owner doesn't have the budget to have the stager do the work they should follow the recommendations and do the staging themselves. I have had many clients that have made a big difference by following my advice. A lot of staging is sweat equity. You want the house to present well but still look like a home that someone is enjoying - therefore they will too.

I ALMOST agree with you. It's NOT always about price and condition. You still need to ensure you market the property right. But - if the price isn't right - it doesn't matter how many pictures or open houses or mailings. It won't sell.

MAR

2009

Janice ~ Thank you for the comment and you make a good point.

James ~ Thanks for the comment and I do agree with you, marketing is key, but price needs to be perfect to get the home sold.

MAR

2009

David, So true. In this market it is all about price and condition. It the propery shows perfectly then it is all about price.

Diane ~ There are some homes that definitely need work to make them more appealing, but if a home is appealing, beautiful, shows well, and is just aesthetically pleasing overall and it is not selling, there is only one other thing it could be, PRICE!

MAR

2009

Go to http://www.RickDeLuca.com for tips and advice.

GingerHarper@seacoastrealty.com

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David Width Jr.

Little Egg Harbor, NJ

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Coldwell Banker Red Top Realty

Address: 824 Radio Road, Little Egg Harbor, NJ, 08087

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