When a new, cooler cycle emerges from the ashes of a completely lit past market, it takes time for home sellers to get on board with reality. Try as agents might, there’s no convincing all owners of current property value.
Three reasons why listings sit on the market rather than quickly going under contract: 💰 Sellers think the law of attraction will bring an unsupecting buyer, encouraging them to pay well above market price. 🦄 They are convinced their upgraded home will ignite a bidding war, fueled by wealthy unicorn buyers from outside areas. 🔥 Most take into … (13 comments)
Recently, I asked this question in the ActiveRain Q & A section regarding: Under what circumstances would you order a desktop appraisal for a buyer client? Never was the majority of answers! They do have a place in this new market, if only to prove a listed property is indeed way overpriced.
A desktop appraisal can be advantageous to cash buyers looking in the market when price is a key component in making an informed decision. Here are three ways to limit the risk of paying too much for a property:
1. Since an appraiser doesn't need to visit the … (20 comments)
The listing agent's recommended list price was based on recent comparable sales, but Bill and Judy decided set the price much higher to 'test the market'. Several home showings were immediately scheduled, they both became extremely excited and then no viewings for several days afterwards.
Soon, they began to question their agent as to why an offer hasn't been submitted. After all, they had 40+ potential buyers walk through since the listing went live. She explained to them that the three properties that compared to theirs were priced very competitively to sell in the marketplace.
Part of being an effective real estate agent is keeping up with comparable's, property sales and subtle shifts in the local marketplace. Getting the call for a listing appointment offers a chance to relay solid information.
After meeting the home seller at the house she wished to sell, we discussed marketing strategies, condition, location. I asked about her expectations regarding timeline to closing and also her price point to list.
She gave me a number that was both unrealistic and pretty lofty. In turn, I gave an up-to-date professional opinion based on a Comparable Market … (20 comments)
After meeting the home seller at the proposed property to list, we walked from room to room, I noticed the condition that each held. Clear evidence of past water damage was present on several ceilings.
Though there was an attempt to repair, the areas were not painted and the seller told me that was not going to do that! Instead, she pointed out the new door, appliances and carpet in a few of the rooms.
At the end of the appointment, I proposed a list amount that the property most likely would sell for and she just laughed, … (14 comments)
Given the opportunity, home owner's may overprice a property in hopes of netting more money. To avoid paying uber-inflated prices, consumer's in the market to buy need guidance to help navigate the process.
Well-maintained properties in a fantastic location become very desirable. Emotions are hard to control when determined to become a homeowner at any cost, especially when multiple offers result.
Rising interest rates have not deterred consumers from moving forward. Though I have a several buyers actively looking, sellers are still reluctant to accept offers requiring financing and appraisal conditions.
My parents purchased a new build back in the late 1970's … (12 comments)
A while back I asked a question in the Q & A section here in the Rain. It had to do with evaluating a river front property with no more land available along the flow of water in the area.
Due to the property's uniqueness, there was one comparable a year back but it was 30 years older than the subject home and sold for much less. Try as I might, there was no way to bring to bring it up to the value he was reaching for.
He was about $70K high in the price and even asked me to … (16 comments)
From the moment, the agent and her clients crossed the threshold of the home for sale, the stench of dog urine and feces became more evident. The potential buyers turned and walked out without seeing the rest of the home.
The property has been a rental for many years with the owner in another state. A local property management company was hired to maintain the upkeep of the home as renters moved in - moved out.
Unfortunately, the recent tenants saw no need to send their animals outside everytime to do their business. The carpets are stiff in places with not-so … (8 comments)
What is the longest period of time you have seen a listing sit on the market in your area? While searching homes on the MLS, I came across a property that had a cumulative 2,003 days on the market.
Four agents so far have taken the listing to no avail. The sellers may have unrealistic expectations of the value. That can also be the result of a listing agent opting to overprice the property with the assumption to eventually lower the price later on.
This property has not sold in 5.5 years though offers have been made. Whatever the reason … (8 comments)
overpriced listings: Resign -or- Re-sign? That is the question.
- 03/24/14 11:56 PM
Resign -or- Re-sign? That is the question. Prior to a listing expiring, sellers will have a clear view on how they wish to proceed with the sale of their home. They may opt to extend the listing with the same agent, shop around for another agent or take the home off the market. Some factors a home sits long on the market: It is overpriced. Even after reducing the price several months after, the window to sell has passed. Inundation of properties hitting the market. More homes means less showings, creating a buyer's market. Suggested repairs at the start that were not done and clearly are a deficit … (27 comments)
Southern Utah has over 300 days of sunshine per year while offering mild winter temperatures for outdoor activities every day! Add that to the picturesque canyons, red rock cliffs, sandstone bluffs, clean air plus small town atmosphere and you are Home, Sweet Home! Come and experience Southern Utah for yourself!
I cover the following areas:
- St. George
- Hurricane
- Washington City
- Santa Clara
- Ivins
- Central
- New Harmony
- Pine Valley
- Toquerville
- Veyo
- Central
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Seller says, "It's a Steal" at This Price!
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