Sellers are still somewhat on the fence about pricing in some of our market areas of Tarrant County. When they are on the fence, still thinking my home is beautiful and I need to get $____for it, it is so easy to take the easy way as an agent and agree or make a promise that you may not be able to follow through with.
Two situations for me recently really brought this point home to me. I have one listing that due to a court situation, the sellers insisted they had to get $160K for the home. The home an older home, with some nice features, but with an outdated look, and in a neighborhood that some would find less than perfect, has had more than 10 showings in 8 weeks and no offers! The sellers are unhappy and still do not want to lower the price.
Next situation: Small and older home in a similar neighborhood and the seller is eager to sell. AFter I present the comparables for the area and explain that the number of homes pended in their price range is a good indicator of how many similar homes of the same description are likely to be under contract for the next month. I also explan that I suggest they price it so that it almost looks too good to be true and then have the home as perfect as they can make it for showings. They agree on the strategy. 3 showings and we have a full price offer.
Even though the housing sales reports sound promising in general, the market is still tentative in many areas. The markets within the local market are all different, and there are people who are so discouraged about selling their homes, and their home values, that they are considering walking away even though they can make payments.
AS REALTORS, (only members of the National Association of REALTORS are REALTORS) it is our professional responsibility to tell the truth and show the figures to prove the accuracy of our pricing strategies. SEllers should know the whole truth before they sign the listing agreement. Every situation is different, however, the more realistic the seller is, the happier he will be when the home actually performs.
It may be a good strategy to have a price disclaimer in your file that you ask sellers to sign when they insist that they want a price that above the recommended price for that area. Agents cannot do enough marketing to sell and overpriced home.........and if they did, it might not appraise!