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.
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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.

"Hi Gramma. Welcome to our HOME!"
"Come on in."
Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.
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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.