That is what Bob Barker said on the showcase show down.
In that show the contestant bid on a showcase of fabulous prizes and all they have to do to get the prize package is get as close to the right price as you can without going over.
I say this to liken it to the current real estate market. Real Estate 101 is pricing. In my fact finding consultation with prospective clients I find out how much they owe on the property, what they hope to get out of it and their motivation for selling. I have walked away from many listings because the sellers "want/need" a price that the market is simply not conveying.
So many agents are putting listings on the MLS at 2005 prices. Are they ill-informed on current pendings and solds prices? If they are, where is their broker's direction.
Do they know they going in they are over pricing but are just looking to put the sign in the yard to field buyers their way? If that is what they are doing, are they being honest with the seller that their home is not going to getting any serious consideration, but they sure do appreciate the sign exposure?
Are they hoping in 30 days they will be able to go to the seller and talk them into a price reduction? My reaction to that is, if you can not get a realistic price in the beginning....what makes you think you can do the right thing 30 days into it? Don't bet on it. What happens is the seller agrees to a 5,000 price reduction and the chase begins.
The seller is chasing the market and probably doesn't even realize it. I walk into every listing presentation knowing my comps, knowing my price per square foot and I know what price range to put the home in for it to have the best chance of selling.
Sadly for the sellers, buyers do not care what the seller "needs" to clear. They are shopping the competition and they can tell an over priced listing as can their agent.
I say all this to ask ....Why are agents listing homes in 2007 at 2005 prices.
At the end of "The Price is Right" one contestant wins, one loses. The winner can be $1000 under and still win. All the loser has to do is be over by $1.00
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