Atlanta Home Sales from 1st Quarter in 2011 reveal severe penalties for unrealistic sellers! It appears that Sellers should be more afraid of over pricing their house - than under pricing it. I know this could easily get written off as real estate agent dogma but after digging deep for the truth, the data should be sobering. It is still very common for a real estate agent in the Atlanta market to hear "I just need to start out at $ _____" from a prospective seller during a listing appointment. Our professional instincts and experience tell us that there is probably a 95% chance this will backfire. We are thinking "probability". The seller is thinking "possibility". Yet, since we do not know for 100% certainty that it will be a mistake, the tendency is to stop fighting, reluctantly go along and let the market solve the question. I believe vast amounts of emotional and financial resources are being expended to resolve the last 5% of what it will take to unequivocally prove who is right. Meanwhile, the buying public looks on with bewilderment and dismay. They can wait. They have nothing to prove.
According to Atlanta home sales data produced by Chuck Carr and the experts at Chartmaster Services, LLC, 87% of ALL listed sellers in Atlanta initially overpriced their home in the 1st Quarter of 2011. This is not "follow the leader"... It is more like "follow the hardheaded". Yes, 87 percent. Two thirds of those people got ignored and gave up (see the red bars in the above chart). The others ended up taking 23% more off their price to get it sold. In the final analysis, the few who beat the odds got 97% of original list price in a month. The ones who "had to try it" eventually got it done but only netted 74% of their original list price in 6 months. Penalty: 23% less and 5 extra months.
As agents, we do not make the market we just interpret it. The market is not good or bad, it doesn't have feelings - it just is. Sometimes it favors sellers; sometimes it favors buyers. I just got off the phone with a caller who said (without missing a beat I might add) that he hoped the market would stay down for another year. He is hoping that home sales in Atlanta will wait for him to finish school and get in position to buy. The winning percentage for Atlanta sellers over the past 12 Quarters has been hovering around 10%. If that does not improve, this buyer's wish may come true.
Looking for High Performance real estate consulting in the Atlanta market? You can find us at www.michaelbunch.com and we are glad to help.