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WHY DO SO MANY HOME OWNERS OVERPRICE THEIR HOMES TO SELL?

Inspired by Janet Guilbault, California Mortgage Expert, who ponders Deflation Nation: How to Be A Seller When No One Wants to Buy                              

In a fascinating article, Janet ponders the many reasons why sellers do not sell when opportunity presents.  We've all seen it happen.  Sellers chase the market down by staying just above the logical search price range for their area.  Or, they consciously overprice thinking that buyers will offer a bit less and then they can negotiate to a price that meets their goal

Sadly, I am reminded again and again that the consumer does not understand the real estate market.  They are all to often controlled by their emotional attachment to the property they wish or need to sell.  Sadly too, when sellers follow these practices, in a falling market such as we have experienced over the past few years, by the time a seller gets to a marketable price range, they can't sell because they now are in negative equity. 

Folks wonder why the home owner doesn't just look at the numbers presented them by their listing agent and price the home to sell if it is possible, given their mortgage balance and market price. 

I don't wonder.  I know why.  It's that magic word HOME.   

"HOME and HEARTH!"  It's where the home owner sits to relax, read, meet with friends and feel the warmth of the focal point of the living room or family room. 

The thought is not "Floor to Ceiling Fireplace with simulated stone construction". 

"Take me home, country road." 

The song is not "Take me to the frame structure situated on 4 wooded acres in a rural community".

The sampler on the wall has embroidered "Home Sweet Home". 

It doesn't say "2 acre lot with a 2000 square foot improvement". 

"What time will you be home Honey? 

The question is not "What time will you return to our real property Honey?

The co-workers doesn't ask, "Where did you make a real estate investment?

They ask "Where did you buy a home?"

HOME IS WHERE THE HEART IS!  says it all. 

  • Home is where we live. 
  • Home is where we raise our children. 
  • Home is where we meet with friends and family. 
  • Home is what satisfied our need for shelter. 
  • Home is reflects our tastes. 
  • Home is where we usually spend almost 2/3 of our daily time. 
  • Home is where we sit around the table and have conversations with our family about their day at school or work. 
  • Home is where families come together.

Don't expect home owners to be detached about selling their HOME.  Unless they have already relocated to another HOME and simply need to dispose of one they are selling or renting, they will not usually listen to market reason. 

Real estate agents and loan officers may consider a property an investment, but to the average home owner, it's much, much more and it's all wrapped up in the magic that is HOME.

                Family with home

                                        "Hi Gramma.  Welcome to our HOME!"

                                                        "Come on in."

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.


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94 Comments on WHY DO SO MANY SELLERS OVERPRICE AND LOSE THE OPPORTUNITY TO SELL THEIR HOME??

MAR
09
2009
513,653 Points 88 Featured Posts Outside Blog Attended Rain Camp

Lenn,

That's because some have no choice if they need to sell or if they aren't in the position to sell short. the ones who can realistically sell are hoping for something to change the market ...they keep hearing that the market will change when we all know that as long as the last trend took..the next trend will most likely be the same length or even longer. I've seen a drop in inventory and that is most likeley because of foreclosures that haven't been repackaged and home owners who simply took their homes off the market and are waiting for change.

2:57pm • #1
114,159 Points 2 Featured Posts

Lenn,  Well put.  I often have clients ask me, "..if I would buy this house?"  I tell them that it is such a personal thing there is no way I could be in the same place they are.

You agents have to take an extremely personal and emotional thing and put a price tag on it.  You agents that are good are really good!

2:58pm • #2
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I have found that opening up a discussion about their new home (or future goals) and talking about that for a bit before we discuss price helps them to remember why they are selling... and that is to start on their journey of making a new home! Great post Lenn.

3:08pm • #3
178,357 Points 108 Featured Posts Outside Blog

Lenn: A very compelling piece. I know that is how I feel about where I live.

This is the number one reason people need real estate agents. You are the buffer and the filter. You provide a service that is simply priceless. You protect from the pain of selling.

I remember as a little girl, my father was transferred every few years. No matter what, on the last day, when we closed the door for the last time, we all sobbed.

4:09pm • #4
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Janet.  By George, I think she's got it.

Liz.  Thanks.  My buyers open up to me very early on our relationship because I'm a very very good listener.

Jim.  Thanks.  My buyers buy for emotional reasons.  I understand that and I help them.  However, I let them know early on that if a house had defects, is overpriced or has other problems, I will let them know.  I have walked out of homes and when asked replied, "It's a money pit".  The buyers were feeling that but didn't know what to say.  I can say it for them.

Neal.  In some price ranges, the only good homes are short sales or foreclosures.  Home owners have, as you say, gone off market because they accept the fact of the market.

 

4:24pm • #5
253,288 Points 58 Featured Posts Called Shot Master

Lenn,

So true. That is all I have to say is, so true. We are the buffers of emotions to our sellers. When your buyer falls in love with a home, it is our job to make sure they don't get screwed on the price. When your seller wants to sell there home they have lived in for 20 years. It's our job to make sure they can get it sold, and not over price it.

-Lisa

4:33pm • #6
483,245 Points 53 Featured Posts Outside Blog Called Shot Master

Lenn--It is the rare homeseller that can pull their heart out of their home and insert logic. When it happens it is usually because they have found the new home to put their heart into.

4:34pm • #7
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Teri.  Exactly.  I've noticed that over the years. 

Lisa.  The home owner who lives in the property can't put emotion aside.  We have to do it for them.

4:47pm • #8
937,483 Points 361 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Lenn, This is not an issue in my area anymore. Sellers are either banks or short sellers. Either way it's no longer a home.

6:12pm • #9
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Bryant.  True.  That should take the emotion out of the sales. 

6:20pm • #10
415,283 Points 22 Featured Posts Outside Blog

Lenn - we use the word home purposely with our marketing to buyers. As of late I am seeing many more houses (homes) coming on the market high. BTW - Like what Janet said above - a buffer and a filter. ~Rita

6:34pm • #11
354,772 Points 137 Featured Posts Localism Sponsor Outside Blog

Lenn, helping the home owner make the transition to home seller is what professionals do.  Sometimes homeowners refuse to take counsel and in markets like this, the emotional devastation from following the market downward is awful.  There's no way to prepare them for what that will be like.  It's much easier to be realistic in the beginning. 

6:44pm • #12
175,751 Points 3 Featured Posts

Lenn,

As homeowners we are emotionally invested in our homes. I have so much sweat equity in my home that I can see how ones judgment can get clouded when pricing their own home. As realtor, it's our job to paint the picture for the seller.  Unfortunately, many agents paint such a rosy picture that they can't paint themselves out of it when there is a need to reduce the price.

6:51pm • #13
708,952 Points 63 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Hi Lenn... this is a great reminder to me.  Since so much of my business is Short Sales, the emotional detachment has already occurred in most cases.  Congratulations on the Gold Star!

6:54pm • #14
Localism Sponsor

Lenn, I cannot believe how many sellers chase the market down to then final take their property off the market. You'd think they would listen to us, the fulltime professional. But sellers like to hear what they like to hear. LOL

6:55pm • #15
706,299 Points 6 Featured Posts Outside Blog Called Shot Master

Well said!    Whether buying or selling, it's always an emotional decision!

 

 

6:58pm • #16
218,248 Points 13 Featured Posts Localism Sponsor Outside Blog

Lenn my experience is similiar as far as "sentimental VALUE" However, the ILLUSION that they can make more money is also a top reason for overpricing. Or that they NEED  certain amount to make their next purchase. None of those 3 reasons are relevant, only FAIR MARKET VALUE prevails if you want to SELL your home.

I heard the phrase, " Do you want your house ON the market or IN the market?"

6:59pm • #17
421,594 Points 76 Featured Posts Called Shot Master

Lenn, it may seem strange, but some homeowners still don't understand the depth of the "housing crisis," or they think it doesn't apply to their location.  Buying and selling a home is a very emotional process; that's why savvy sellers try to appeal to emotional triggers.  While it is difficult for sellers to remove emotion from the process and to base their pricing on facts, a good agent can serve as a guide and can explain the ramifications of pricing too high. 

Today's market is especially troubling for it comes at a time when homeowners have seen their savings cut in half, and are now expected to forgo the profit they expected on their home. I admire those of you who continue to struggle with this market and the unreasonable expectations of buyers and sellers.

7:00pm • #18
276,126 Points 1 Featured Post Outside Blog

Lenn, great post and spot on!  Most homeowners do get attached to a place and factor in many of these homeowners believe that the fence, the pool, the gnomes decorating the lawn are all additive to the price and no CMA is going to tell them otherwise.

7:01pm • #19
8 Featured Posts

Lenn, This West Virginia girl thinks you might be a Mountaineer at heart...Take Me Home, Country Roads is our theme song!  Great post, wish I'd thought of it :)

7:06pm • #20
175,854 Points 14 Featured Posts Called Shot Master

Very well stated Lenn. Many times we as agents need to be reminded of the emotional aspect of the sellers.

7:06pm • #21
1,481,047 Points 275 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Lenn, thre are so many buyers and buyer brokers who just don't get the "home" part of the equation!  I've had agents totally insult sellers and their homes while trying to justify very low offers.  And that strategy certainly doesn't help sellers to get over their chasing the downward market foolishness.

7:07pm • #22
156,303 Points

Lenn: Agree with you 100%. So many times when we are sitting at the breakfast table going over the market numbers with the sellers, they listen as you tell them what their home is worth on the market right now and where the house should be priced to sell. Then they look at you and want to overprice their house, so they can come down when they get their first offer. Then we try to explain to them that they won't be getting any offers if they overprice the house, infact they won't get any showings. Then they tell you how much better their house is than all of the comps that you have shown them.

Sometimes I want to ask them how long they have been selling real estate!

As always, you are right on! Thanks for the great post!

7:09pm • #23
1 Featured Post

Bulls eye, Lenn!  With allof my home buyer and home seller clients, I go over the concept I call "The Home Factor."  It's that intangible feeling that you've talked about that even though invisible, is unbelievably powerful.  We can match features and parameters all day long - but we CANNOT conjure up the feel of the property.  And if that "The Home Factor" is ignored, it can have terrible consequences for buyers AND sellers.  Very nice post, lady!

7:12pm • #24
548,132 Points 1 Featured Post Localism Sponsor Outside Blog Attended Rain Camp

I have thought that when you buy it and live ther it's your home but when we want to sell it does become a house. Too bad they can't get the home out of the house sooner.

7:15pm • #25

Why is it that I attract these types of sellers? Am I jinxed or what?

7:21pm • #26

I show them comps and reports galore. I even prepare bar graphs of MONTHS (not days) on the market. I talk about "pricing to sell not sit". They say they don't want to overprice like "Joe" down the street has done. So I think they're "getting it". Then they mention what price they want/need to list at. Guess what - they don't get it. Of the last 3 listing appointments, I've had to remove my name from consideration on two of them since I don't want a grossly overpriced listing. They just don't think the market applies to THEIR HOME! They believe they have the ONE home that is different. :-(

7:45pm • #27
194,057 Points 4 Featured Posts Outside Blog Attended Rain Camp

Great article Lenn.  The sad thing for some of these sellers is that they were the buyers in a seller's market.  Bought at the top and have to sell at the bottom.  Ouchh...

8:09pm • #28
1,226,270 Points 262 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Lenn...

There's nothing inherently wrong with developing an attachment to the place where you raised your family. celebrated the holidays, and experienced every day life in its most basic form.

But when they decide to relinquish their domicile in exchange for money, they must detach their sentiments from the process, as hard as that is!

8:14pm • #29

Very good article!  Sellers always think they have the nicest house in the neighborhood and it's worth $xx more than their neighbor.  It's hard for sellers to not be emotional about their homes but we need to have that difficult conversation with our clients up front!!  Price it right when it first comes on the market!!

8:22pm • #30
422,778 Points 20 Featured Posts Localism Sponsor Called Shot Master

Hi Lenn,  I liked this post because I think you have gotten to the Heart of the Matter! Thanks!

8:34pm • #31
1 Featured Post Localism Sponsor

Lenn, you said a mouthful.  Very well put.  Emotions run high on both sides when deciding on a home.

8:36pm • #32
792,418 Points 32 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Like Janet, I moved many times and it is never easy to leave your current home behind.  As with grief, there are several stages to pass through before you reach acceptance. I have prepared listing paperwork for sellers only to have them say they are "not ready" to sign them yet.

8:44pm • #33
114,049 Points

Hmmmm, this is a great question, why do sellers overprice their homes? maybe we should ask our friends at Zillow or our competition it was listed at before why they put it on the market at that price and got the sellers all excited in the first place.

8:46pm • #34
861,456 Points 76 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

You don't buy a home with your head, you buy it with your heart..

Unfortunately, when you go to sell, frequently your heart rules and not your head. You can give a seller all the cold hard facts / data you want, but they then are so invested in it with their hearts that they cannot think unemotionally.

8:48pm • #35
806,038 Points 27 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Lenn,

Very well put! I am seeing some realistic sellers of late. It is hard to fight black & white statistics!!

8:50pm • #36
293,614 Points 19 Featured Posts Outside Blog

So very true.  They always think theirs is better.  ALWAYS.  Now to convince them otherwise..

9:09pm • #37
745,186 Points 3 Featured Posts

Lenn,

No one wants to leave money on the table, but when the sellers get anxious, this approach turns into a disaster.

Brian Madigan

 

9:17pm • #38
227,064 Points 25 Featured Posts

Everyone thinks of their home as a castle - better than the rest.  I am still amazed how many roadblocks some seller put in front of buyers.  It is almost as if they really don't want to sell their home.  Some seller get very emotional and visibly upset when they get a lower than list price offer - some won't even bother countering.

9:37pm • #39
622,286 Points 21 Featured Posts Outside Blog

I had a freind call today talking about how great his house was even though it had no driveway, no front landscaping but he thought he could get top dollar.

9:46pm • #40
293,830 Points 49 Featured Posts Outside Blog

Lenn, so true.  One of the first things I was taught in real estate was to never, ever, refer to a seller's home as "home" but "house."  Of course, this was an effort to detach them from the emotion.  As if an hour in someone's kitchen calling the home a house could do that.  An exercise in futility, I suppose, but I still follow that lesson.

10:00pm • #41
531,037 Points 4 Featured Posts Outside Blog

Many sellers know what they want for their home and the market just won't bare it.. It is best to go ahead and price correctly and not continue to make payments. In the long run they may come out ahead.

10:12pm • #42
531,037 Points 4 Featured Posts Outside Blog

Many sellers know what they want for their home and the market just won't bare it.. It is best to go ahead and price correctly and not continue to make payments. In the long run they may come out ahead.

10:13pm • #43
1,304,771 Points 314 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Lenn - excellent. I haven't met a seller yet who wasn't emotionally attached to their home and had trouble with this. And aren't many agents the same, even though we should know better?

Jeff

10:47pm • #44
608,296 Points 26 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Lenn, that's part of the problem. In the past homes weren't considered a piggy bank quick investment as they have been in the past few years.  You would think after two solid years of bad news people would get the picture but many still do not and want to chase the market, thinking their home is an exception.

10:48pm • #45
364,087 Points 12 Featured Posts Localism Sponsor Outside Blog

It is emotion until the first agent is fired and the second agent is hired; then, it is all business.  The question is how does the first agent turn the emotional sale into a business sale?  We have all been at both ends of the spectrum, and I do not have the answer.  Right now, I am a hero to several because they saw the business side of the home sale, and the emotion left.  I did lose one, and explained this concept in depth with the seller....noting that would end up selling where I initially suggested. That did not work, and day one after I am gone they reduce the price to where I had told them and it sold where I told them.  It is a very interesting psychology......

10:49pm • #46
392,760 Points 11 Featured Posts Attended Rain Camp Called Shot Master

With each of us our emotions come to play when it comes to our own home. It's the one factor that complicates the marketing of homes as a commodity. People can only sell a house for what it's worth to a buyer and pricing it high won't bring the buyers in. THe problem is that the homeowner is emotionally attached to his home and doesn't see it as just a house. How to get him to, that is the question.

10:56pm • #47
980,970 Points 81 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Lenn,

After all you said about home, we can't really blame the homeowner that they do not jump on the opportunity to sell. Unfortunately, in a slow market they place a higher value on is their home. It may not be the wisest move, but with so much attachment that only a Home can have, it is not easy

11:17pm • #48
MAR
10
2009

Isn't it the truth that everyone thinks their home is worth more than another one exactly like it! Many sellers don't seem to listen to their Realtors. They hire them because they are professionals but it seems like they don't allow their Realtor to price the home competitively. They do seem to build in the "negotiating room" that they expect the buyer to ask for. I think it boils down to everyone wants to feel like they are "winning" when it comes to purchasing or selling a home.

12:09am • #49
160,341 Points 1 Featured Post Localism Sponsor

Lenn- You're right on target.  It's no wonder that sellers have an emotional attachment to their property.  After all, it's their...HOME.

12:54am • #50

Lenn - Absolutely correct and very nicely said!  It works the same way in the rental end too.  Another good reason to hire a professional property manager - and even more importantly - to listen to their experience and knowledge.  Owners planning to rent out their HOME are much more emotionally attached than investors.  They have fond memories of births, deaths - well actually life lived within those walls. And it usually will cost them financially.  

3:43am • #51
139,352 Points

Both the buying and selling of a home is a very emotional experience for most people. It has been exceeding difficult recently for sellers because many haven't forgotten the quick run up in prices a few years ago with buyers bidding up prices without contingencies. It takes time for the mind to adjust. Based on my experience the past month or so we may be seeing that move back to reality.

3:52am • #52
1,139,227 Points 139 Featured Posts Outside Blog Called Shot Master

Lenn, Congrats on the Feature. Houses are nothing more than brick, mortar and wood. People take the finished product and with love, turn it into a home...

Your building consultant for life in Nashville, TN ~ Michael

3:54am • #53
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Kenna.  I have, for some years, referred to listings as houses and properties under contract as "homes".  It just seems to work. 

Lola.  I agree.  I also believe that we can be more helpful if we understand the home owner's conflicts.  IMO, the worst thing a real estate agent can do is just take listings without either understanding or offering the market facts to home sellers.  We can understand their conflicts but should still stay faithful to facts.

Remo.  Indeed.  I am also emotionally and deeply financially invested in my now deeply discounted home.  HA!  I'm in the same boat as many home owners in my area with a new home built in 2006.   When I say to home owners, "I feel your pain", I really mean it.

Steve.  With so many short sales, home sellers are even more conflicted.  Of course, once they have moved on, acceptance becomes easier.  A Gold Star, what do you know.  I had given up hope of ever getting another.   Perhaps "hard core real estate" isn't as popular any longer. 

 

 

 

4:34am • #54
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Ronnie.  But sellers like to hear what they like to hear

That is what we have to fight daily.  I know from experience that sellers will often take market facts personally. 

Sea to Sky.  Indeed.  We can be sensitive to the seller's emotional concerns, but can't let it cloud our judgement. 

BethAnn.  Right you are.  We have to lead and not follow the seller's belief that they can sell for what they want and not consider the real estate market.  It's a powerful force.

John.  You bring up a very important fact, the loss of the value of their retirement accounts and then being told that their real estate has about half the value they paid for it.  It's hard for owners.

Tim and Pam.  That's my experience.  They do not believe what they see in black and white.

 

4:41am • #55
2 Featured Posts

Overpriced homes will always be around.  It is just more apparent today with upside down loans.  The overpriced homes allow the properly priced homes to stand out and get sold as they should. 

At some point down the road, the overpriced homes will cycle to the correct price and replacement overpriced homes will be placed on the market to begin anew. 

4:45am • #56
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Amy.  Thanks.  We, as business persons, often overlook the emotional perspective of the average home owner. 

Cameron.  I agree.  We know the facts, but facts don't always get through the emotional shields.

Pat.  I've seen that happen over the years.  Insulting a seller is not the way to get them to listen to market facts.

Sandy.  I feel like I'm sitting there at the breakfast table with you when you show the CMA and the seller then changes the subject to tree they planted in the front yard.  They don't hear what they don't want to hear.

 

4:46am • #57
360,757 Points 36 Featured Posts Called Shot Master

Lenn, I also think we, as the experts, need to be more forceful with potential sellers about the reality of the market.  I've been rejecting listings when sellers are too unrealistic about value.

4:47am • #58
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Randy.  Thanks.  I believe that one of the reasons I have been successful selling real estate over these years is because, with experience, we learn to really "listen" to the home buyers and sellers.

Terry.  True.  Folks have real love for their homes and it shows when you try to show them value in today's market.  You have to tread lightly when their pride meets head on with their pocketbook.

Kelsey.  You're not alone.  I speak with them every single day. 

Elaine.  Indeed and sometimes, sadly, they've got the one that is "different" and with less value than their neighbors. 

Tere.  That's the market fact that we face daily.  It's just so much harder for the folks invested in it.

 

4:52am • #59
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Mary D.  By George, I think she's got it!

Leslie.  They do indeed and, as the unemotional entity involved, we often receive the ire from the sellers. 

Norma.  Right and sometimes that's the best decision.  Of course, in a falling market. . . . .

 

4:55am • #60
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Sonny.  I am second to none in voicing my distain when supposedly smart agents just take those overpriced listings and clutter the MLS with them.  They, the agents, serve no one.

Erica.  Right and we've all seen it many times.  In fact, we can often feel it.

Dorie.  Sometimes.  However, many sellers have a vision of their home that is not realistic.   They're very personally vested in every inch of it.

James.  I never said it would be easy.  Just necessary.

Brian.  I'm not clear on your message. 

Maggie.  You're right.  The term house and home are worlds apart.  Referring to someone's home as a house will often make them feel like you're trying to rip their heart out.

 

 

5:01am • #61
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Ryan.  Been there.  I just closed a sale where the property was clearly overpriced by $100K.  Unfortunately, the listing agent kept harping on the "improvements" the sellers had made.  Sadly, I had to be relentless when showing that their "improvements" had added no value. 

Roland.  I don't understand your advice to "stop making payments"  Isn't that risky???

Jeff.  Sadly, yes.  We should be unemotional, but that takes experience.  We can have empathy, but have to remain professional.

Frank and Sharon.  Right.  Many folks use their home like a piggy bank until they need to sell and find themselves upside down and then can't sell if they want to.

Tim.  Perhaps they just didn't want to reward you for bringing them to reality. 

5:08am • #62
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Lora.  Exactly and the agent is right in the firing line.

Jon.  That's my message.

Libby.  Indeed they do and sellers often buy the NAR message about real estate being the great investment.   The NAR wouldn't get off that nonsense even with prices plummeting.

Marilyn.  Indeed.  Sellers often do not think, they feel.

Betty.  Of course, it affects rentals too.  Not only are the owners moving out, someone else is moving in in their space.

Alan.  It's called capitulation.  Some folks never give up though.

Michael.  Goodness, you must have read my article.

 

 

5:15am • #63
320,285 Points 5 Featured Posts Outside Blog

Emotion always come into play as to us its another house on the market but to the homeowner its so much more as you described.

6:04am • #64
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Laura.  Indeed it is.  They feel it in their bones and in their heart as well as their pocketbook.

6:05am • #65
317,970 Points 32 Featured Posts Outside Blog

Lenn, This is great information for everyone.  I have a buyer who keeps asking me why people don't see reality when they list so high.  Thanks for laying it out so well.

6:05am • #66
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Paddy.  Thanks.  That buyer will feel the same way when they have selected the color of paint on the walls of their newly purchased home and then price it over market to sell because it's so lovely.

 

6:12am • #67
429,369 Points 57 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Well said LENN- Be it ever so humble There is no place like home!

6:45am • #68
Outside Blog

Very good post...and SPOT ON!  It is hard to get that parade of Buyers to come back down the street once they have marched on!!!

7:36am • #69

So true..Involved in two very emotional sales right now--one estate sale, where Mom lived for many years and one where Grandma went to nursing home.   Sellers can't let go!

Rosa
7:47am • #70
4 Featured Posts Localism Sponsor

Lenn - You're right that it's difficult to get your sellers to think of where they live as a house, not their home!  What else besides that emotion thing keeps a home from selling?  Sometimes its greed . . . greed . . . greed.  I read somewhere that the most important thing we can do for our sellers is to control their greed.  Add that to the emotion and we've got a house that will not sell!

Mary

7:50am • #71
576,978 Points 3 Featured Posts

We have to get them out of that mode. I ask them to mentally move out, imagine and only think about where they are going. As good as this part was if they truly want to sell it is over. I also ask them to buy their home back, when ever they turn down an offer that is what they are doing. When we decide on price I ask are they comfortable paying that much for it. You would be surprised at what I hear.

7:58am • #72
317,970 Points 32 Featured Posts Outside Blog

So right Lenn!  We all think we have the best.  Although seeing so many homes has made me think mine needs a lot of work to be worth anything.

8:17am • #73
3 Featured Posts

Lenn,

Such and excellent perspective, as are so many of the replies. This is so helpful on so many levels to newer agents, like myself.

In many cases, we are asking them to part with their most expensive family heirloom, at what they see is a yard sale price. Tact is so necessary.

 

8:36am • #74
811,199 Points 91 Featured Posts Outside Blog Called Shot Master

Great post.  The reason a home owner hires an experienced agent to represent them is to keep a handle on objectiviity.  If the emotions run the deal it is hopeless.  Sellers can really blind themselves to the realities of the current markets...emotions need to be contained.

8:42am • #75
2 Featured Posts Localism Sponsor Hit Router

Lenn, I got here via Janet's post - - thank you for another insightful, entertaining piece.  If people didn't feel this way about their homes, all we'd have is junk to sell.  Love of home and pride of ownership create the properties that show the best and breeze through inspections!  No one can force us to list at unrealistic prices.

8:50am • #76
268,741 Points 2 Featured Posts Called Shot Master

Lenn, I completely understand where you are coming from. As a mortgage consultant I work with clients that are buying a home (not just a framed structure) and they are emotionally attached in the very beginning.

9:37am • #77

How true.  Home is a place we spend time with our families and there is a lot of emotions attached.  That is why sellers should look to an expert in their market to help sell their home without the emotional attachment

9:38am • #78
221,977 Points 9 Featured Posts Outside Blog Called Shot Master

Lenn, Sellers have to look at their home as a commodity when selling and try to depersonalize it and that is so difficult. I have had buyers walk in a home and say this does or doesn't "feel" right, so they are going on gut more than investment purposes sometimes. One agent in my office says do you want a good deal or a good home that fits your family.Great Post!!

10:21am • #79
179,006 Points 13 Featured Posts

I think ultimately sellers over price their home is because their agents let them.

The agent needs to represent their selling interest, not their emotional one.

10:27am • #80
285,140 Points 11 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Lenn,

Home....ah, what wonderful feelings it evokes.  Isn't it kind of ironic that this emotional feeling both works for us and against us...for us when we are seller's agent and try to find that house that says home...and against us when we try to break that attachment which is nigh impossible to do!  I too remember when my childhood family home was sold...lots of tears!  And when in town, I sometimes drive by to see the house and progress of three trees my Dad, Mom and I planted!

Lori Cofer Realtor Pullman WA

10:54am • #81
156,303 Points

Lenn:

We have just stopped taking the really overpriced ones, it has hurt our inventory, but we made the decision that it just was not worth the expense and the time to take a listing into our inventory that has no chance of selling. We figure, some other agent will take it - overpriced - it won't sell - and we will re-visit them after it expires -maybe then they will listen. Love what you said about the tree in the yard  - love it even better when they want to take the tree with them when they move.

10:55am • #82
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Sandy.  What a great business plan.  Let your competition have the overpriced listings.  I love it.

Lori.  It is hard.  You can empathise with sellers.

Mark.  Of course.  Tell that to a home owner who believes that their home is the best on the block even when it's the smallest, oldest, ugliest.

Kristi.  Thanks.  I've told buyers who asked "when will we know" that "you'll know.  You'll feel it".

Kristina.  Indeed.  However, the "expert" has to be trusted and strong.  Otherwise. . . . .

Integrity.  You bet they are. 

11:23am • #83
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Terry.  You got the message right.

Jim.  Right and it's so misleading for agents, experts to take overpriced listings.

Bill.  Tact is important and they have to trust your judgement.

Paddy.  We should know better but I wonder who would give a fig for my bulb garden.

Charles.  You're a genius.  I love it.  mentally move out

 

11:26am • #84
1,256,101 Points 242 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Lenn- You are right, for most, it is home. For many down here it was ATM machine!

But back to home, we tell sellers that they must detach, now their HOME is nothing but a COMMODITY. And being such they must accept the fact to not take anything personal. Strictly becomes business. If we can get them to detach; we are on our way to successfully pricing the home commodity.

4:09pm • #87
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Katerina.  Which, of course, is why sellers need an experienced agent to advise them.  One with strong facts who will not acquiesce to sellers' emotional explanation about how their's is the best. . . . .

4:15pm • #88
313,393 Points 8 Featured Posts Outside Blog

Lenn,

It's understandable that homeowners get overly attached to their houses and then can't be realistic as to its market value. Like now it's also a matter of not be willing to incur a loss. It's a difficult environment.

9:36pm • #89
MAR
11
2009
1,007,999 Points 208 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Hi Lenn!  Coaching the 'emotion-out' of the real estate transaction is sometimes THE most difficult part of our jobs.  Even with buyers who 'fall in love' with a homeI wish I had a pill to give them to keep the emotion OUT, because you simply cannot maintain a business 'sense' when you're the least bit emotional--and using the business approach is the only way you're going to SELL--esecially in the current market!

Congrats on that little gold star!  And, food-for-thought--are you aware that you are WELL on your way to ONE MILLION points?!  WHOA, now that is some serious writing, my friend, serious writing!

8:05am • #91
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Thanks Debe.  I tell my buyers to just think about the home you're looking for and I let them know when a property is seriously overpriced.  I just closed one that was priced in the mid $580s and we got it for $505.  It just takes some work.

A million points.  Mmmm. 

8:46am • #92
MAR
12
2009
300,676 Points 55 Featured Posts Localism Sponsor Outside Blog

Lenn - Nice message. It is a little like assuming that pets are not family members. Anything attached to a family, whether living creatures or fixtures can be considered an integral piece of somebody's lifetime of memories that can all equate to "home". For most people, a home contains a lot more than the obvious furnishings.

6:22pm • #93
MAR
13
2009
1,545,941 Points 417 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Carol.  Indeed.  Certainly a lot more than the liber and folio.

 

4:51am • #94

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