Charlotte's average "Days on Market" isn't too high...Your List Price Is!!!

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Real Estate Agent License # 258579

Charlotte's average "Days on Market" isn't too high...Your List Price Is!!!

Finally three years into the business and I am completely fine turning down any listing I think is over-priced or a waste of my time and money.  Many who are first starting in real estate want to get their signs in peoples front yards.  I understand this because this is where I was a couple years ago.  What I learned is that those overpriced listings do not produce quality buyer leads and do not help me build a trusting relationship with the sellers.

So far in September I have turned down one listing and did not re-list a house because both sellers were unrealistic with their list price.  Every real estate agent can probably name a couple agents in their area that will take any listing at any price.  These agents build a reputation for being unrealistic and they aren't doing their job as a trusted adviser if they have not told their sellers that they are overpriced. 

WHAT HAPPENS TO OVERPRICED LISTINGS???

Overpriced listings tend to chase the house prices downward and if/when they finally do sale, it is at a value much lower than what the seller could have achieved if it was priced right to begin with.

Example:  You list at $210,000 and your agent tells you we are in a declining market and your house should be listed around $190,000 to reflect market values.  Three months later you drop the price to $200,000 but now your agent tells you that the values have dropped and you should be listed closer to $185,000.  Another three months go by and you drop the price to $190,000 (where you should have been to begin with and you would have already sold the property and be in your next dream home) but now your house needs to be listed between $175K-$185K. 

See how this hurts the seller?  If the seller would have listened to the agent and listed at fair market value to begin with, then the house would sale much faster and at a higher price than if you keep reducing the list price trying to catch the declining market.  It always makes me question the seriousness of a seller when they say... "I know the value of my home, you don't need to show me those comps."....this is when I usually walk out the door and wish them good luck.  It seems that many sellers think that agents want to come in and get an under-priced listing so that we can get paid fast. 

I HOPE AGENTS DON'T THINK LIKE THIS.  I WANT MY SELLERS TO NET AS MUCH AS POSSIBLE BECAUSE THIS WILL STRENGTHEN MY RELATIONSHIP WITH THEM AND INCREASE MY CHANCE OF RECEIVING REFERRALS FROM THEM.

So I took a listing 12 days ago.  The seller told me he would only let me list the house for 14 days but he did list the house at what I thought was fair.  I put the house under contract lastnight after only 11 days and proved to myself that there is still a lot of buyer activity out there.  I, like all other agents, felt my business drop after the tax credit deadline.  Now I have a handful of listings that will close and a bunch of buyers. 

Any agent who says there are no buyers out there has either lost their mind or their drive to network. 

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North Carolina Mecklenburg County Charlotte
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Tags:
real estate market
average days on market
declining market
overpriced listings
list prices
underpriced listings

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Rainmaker
262,382
Dawn Crawley
Dawn Crawley Realty - Pinehurst, NC
Find Pinehurst Homes

We certainly have agents in our area that list homes too high.  I was going to show a home priced in the $700,000 range over the weekend. When I called to schedule an appointment, the agent said, "Oh, you haven't been in that home before, have you?". She then proceeded to tell me how much work it needed. It's been on the market a long time and obviously way over priced.  If I have a buyer for one of her properties, I immediately tell them to know 10-20% off the price.  Even if it has been lowered.

Sep 21, 2010 05:49 AM #1
Rainmaker
80,966
Brandon Farmer
Charlotte, NC
Keller Williams Realty Huntersville, NC

Dawn-Thanks for the comment and you are exactly right.  I can think of a few agents in Charlotte that overprice everything.  It becomes where I do not want to show their listings because I know, before I enter the house, that their $300,000 house is probably only worth $225,000 and my buyers will think I am not doing a good job of showing them houses that are priced correctly. 

Sep 21, 2010 05:58 AM #2
Rainer
208,562
Ilona Matteson
Beach Realty & Construction on the Outer Banks of NC - Duck, NC
Ilona Matteson

Brandon - I agree with you 100%.  It hurts the seller to not price properly.  I do have to add that I believe it's the job of the agent to educate and in the end SELL the seller on the correct price.  If the seller is truly motivated and the agent has a solid presentation packed with great questions then it should be fairly easy.  Now, I realize not everyone will listen.  The majority will, if questioned properly and given the right information.  Your presentation has to be so compelling they just can't even question what you're saying.  The same questions I ask every agent are...how many questions do you have in your presentation.  And, how often do you PRACTICE your presentation?  We get paid to the level we present.

Stay strong on price and your business will grow.  Good job!

Sep 21, 2010 06:13 AM #3
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Rainmaker
80,966

Brandon Farmer

Keller Williams Realty Huntersville, NC
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