Stop Under-Pricing Your Listings

By
Real Estate Agent with The Boutique Real Estate Group

The Orange County market has changed...A LOT! It's no longer necessary to price a $500,000 home at $425,000 to get offers. Why not price the home at $500,000 or even $515,000? You'll still get offers, but now, you'll only get a few serious offers instead of 30, with the majority of them being well below market value. It only takes 1 good offer to get a home sold.

I can't understand why a tactic used to sell homes in a downward trending market would be the same pricing strategy in an upward trending market. It's COMPLETELY unnecessary. PLEASE STOP!

I now leave pending properties out of my CMA because we have no clue as to what the actual sale may be. It used to be pending sales were an indicator of what prices are getting buyer's to make an offer, and the sales price was somewhere near it. Now any list price will get them to make an offer.

It seems like many homes are selling at 10% or even 15% over list price right now. Why would you want to deal with all the traffic and offers from buyer's that won't pay or can't afford market value for the home? I think your client would be ok with less traffic if you were still able to get them the offer they wanted. Even if it's a short-sale, we still have a duty to get the home sold as close to market value as we can and, once again, why inconvenience the seller with buyers that can't really afford their home?

It's REALLY time to start marketing homes at their real value.

 

Comments (4)

David North
Coldwell Banker Bain - Duvall, WA
for a rewarding real estate experience

Jeremy, about what percentage of properties in your market are getting multiple offers and selling above the listing price?  Are there any problems with appraisals?

Mar 27, 2010 09:13 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It was tough to get sellers and Realtors to realize we were in a down market when it happened, sounds like you're having the same difficulty in reverse.

Mar 27, 2010 11:18 PM
Jeremy Lehman
The Boutique Real Estate Group - Garden Grove, CA
Jeremy Lehman

Almost all properties get multiple offers, unless it's luxury property. There can be issues with appraisals, because market value is going up, much like a downward trending market where the next purchase price is lower, our next purchase price seems to be a little higher. Also, there are many shortsales that are closing, that were negotiated 6-12 months ago, so this low comp pops up. You need to consider that the market conditions were different when the price was accepted.

Mar 28, 2010 04:48 AM
Chris Olsen
Olsen Ziegler Realty - Cleveland, OH
Broker Owner Cleveland Ohio Real Estate

Hi Jeremy -- I find sometimes that agents have no clue on what the current trends are, etc.

Mar 28, 2010 04:57 PM