Special offer

Seller's Motivation Determines Time to Sell (short sales excluded)

Reblogger
Education & Training with Ludwig & Associates

Take a moment to read an outstanding post.

Good luck and success.

Lou Ludwig

Original content by Retired Notworking

seller motivation scaleOn a scale of 1-10, with 1 being lowest motivation (e.g. testing the market) and 10 being highest motivation (e.g. transferred and must sell in 30 days),  a seller with a motivation of 8-10 should price the house slightly below market value and then listen to what the market is telling them. (Note: if they also want to get the best possible price, they will make repairs, make it look good inside and out, and make it easy to show).

The message from the market is always loud and clear and should be taken personally. Over many years, Realtors have learned how the market speaks to each seller:

 

 

  • If the house gets lots of showings in the first two weeks, but no offers, the house is priced a little too high
  • If the house gets a few showings the first week and then they drop off, the price is too high
  • If the house doesn't get any showings, it is way overpriced and has been rejected by Realtors who won't recommend it to their clients
  • If the seller gets more than one offer and they are all way below what the seller expected, the market doesn't think the house is worth the listing price.

A motivated seller who listens to the market (and has a good Realtor giving them advice), will take action based on what the market tells them and will get their house sold within 30 days or less ... even in a buyer's market. They might even get multiple offers that raise the sale price above the list price.

Sellers who are less motivated because they don't have a compelling reason to move are less likely to listen to the market and their house is likely to take longer to sell, or won't sell at all.  

Regardless of what the seller thinks the value should be, it's the buyer's perception of value that counts. If you have to sell the house by a certain date, it's imperative to take action based on what the market tells you.

Don't listen to those who say a house hasn't sold because of the market.  It's really because of the seller's motivation. Find a Realtor who can help you overcome current market conditions.

Comments (3)

Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Exceptional post...needs to be a featured one!    Well said....

Jun 02, 2010 07:19 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good post. I always tell sellers that the buyer determines the price and it is up to the seller to accept or reject the offer.

Jun 02, 2010 11:14 PM
Adam Brett
The Adam and Eric Group - Fullerton, CA
The Adam and Eric Group, Fullerton's Finest

Good stuff as always Lou. Thanks for sharing. 

Jun 07, 2010 12:11 PM