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Delusional seller? Or maybe doesn't really want to sell?

By
Real Estate Agent with Compass

I am currently prepping an awesome new listing to come on the market this weekend.  The clients have been absolute A + gold star sellers.  They did everything I asked them to do for staging, turned down my offers to run around and do it for them, agreed with me on pricing and showing instructions.   Did not complain and got it done fast.  Showing instructions could have been a big deal with them as they have a toddler who goes to bed early.  We talked about how to handle this and I said you really never should turn down a showing.  I am a mom, and I know the rule you never wake a sleeping baby too, but selling your home is all about short term sacrifice for long term goals.     We agreed she would let people come past the baby's bedtime, but she'd just tell them that the baby was asleep and they could skip that room and remind them the photos show it quite well.  Problem - solution!  Not ideal, but better than saying "no you can't come at all!"  They want to sell and are doing what it takes to get it done.  

There have been a lot of stories about sellers not showing their homes lately and there's a listing I've been following that has refused to make changes to the condition and very slow on price reductions over the course of 5 months.  I asked my buyer who was interested in the listing if it were priced much lower, what she thought of the latest very tiny price reduction.  She said "they don't want to sell."   

Is that the message you are sending with your listing?   Because that is the perception buyers will have if you are not amenable to show it or reduce the price or change the conditon after months on the market.  

I said the seller and agent are delusional to think the house will sell at the price and condition it's in.   But I do wonder, how many sellers are just wasting everyone's time?  How many are just dipping their toe in the water thinking "that one buyer" will pay me this way above market price and love my flowered wall paper?  They don't truly want to sell.  I think anyone would sell at anytime for a ridiculous amount of money.  I'd be a seller very fast if someone knocked on my door and offered me a million dollars cash to buy my house.    Most of us would.  But that doesn't mean we are going to enter the marketplace with those kind of expectations.  

How many agents out there are enabling this behavior that wastes the time and energy of dozens, if not hundreds of buyers and their agents and makes the market look worse than it really is?

 

 

Christopher Pataki
RE/MAX Associates - Hockessin, DE
Hockessin Delaware Real Estate

Sellers come in all shapes and sizes.  Maybe "are you delusional" should be part of the client interview.....................chris

Jun 21, 2011 03:31 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Dipping the toe in the water to see if they can get what they want is what a lot of sellers are doing right now.  These are the sellers stuck in 2005 prices in their head.

Jun 21, 2011 03:45 AM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Coral - We had to deal with this issue just last night - "Well, I don't really need to sell quickly, how about if we list it at $x more than you suggest and see what happens?". We learned a long time ago to get tough right then, and either walk away with a listing that will sell, or just walk away.

Jun 21, 2011 05:36 AM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

"How many agents out there are enabling this behavior that wastes the time and energy of dozens, if not hundreds of buyers and their agents and makes the market look worse than it really is?"

WAY TOO MANY!!!  I too have asked this question several times on my own blog and end up getting chastised by AR Realtors who try to justify why they are engaging in this exact behavior.  I will bet money that you are going to end up getting a bunch of comments from AR Realtors/agent who are engaging in this behavior and they will relay some story about how some seller started out unrealistically high but they eventually got them to come down.  

However, I'm more interested in the other 10, 20 or 50 sellers and over-priced listing they never succeeded in getting priced right.  I'm more interested in how many over-priced expired listings they've had over their career because of all the delusional sellers that they couldn't convice to come down.  Was that one success story worth all the ones where they never succeeded in convincing the delusional seller to price the property right?

Jun 21, 2011 05:58 AM
Coral Gundlach
Compass - Arlington, VA
Real Lives. Not Just Real Estate.

Donne - Thank you!!  I hope so, bring it on :).   I seriously would love to hear the justification.  So many will never sell.  And it's not just about price.  I could not take a listing that had insane showing requirements.  Cara Marcelle Mancusco just blogged about one that required a contract before showing!!!???  Just say no people!  There are other real sellers out there who won't waste everyone's time.

Jun 21, 2011 06:12 AM
Karen Bernetti
Southington, CT

Great post Coral.  Sellers who aren't willing to properly prepare their home for sale, make it difficult to show and/or refuse to be realistic about price may think they want to sell.  I think the bigger problem is they're not READY to part with their home just yet.  Emotional attachment to a home often gets in the way.  

Jun 21, 2011 04:27 PM
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

There are quite a few of these out there.  Some will get religion and lower the price - others won't.  Around here though most sellers have - through hard knocks - gotten it! Buyers - that's another story...

Jun 26, 2011 12:49 PM
Dawn Brenengen
Dawn Brenengen - Trailwood Realty - Raleigh, NC
Sales and Management

I had to turn down my best friend who wanted to list a $155k home for $185k.  She was hoping that some sucker would just walk by and decide they couldn't live without buying it.  I explained to her how appraisals worked and showed her the comps.  I think it finally sunk in, and they have decided to stay put until the market picks up a bit.  That's exactly what they should be doing.

Jun 26, 2011 02:05 PM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

As with Dawn, I think it's the appraisal argument that should help "sell" the correct price range to sellers.  Even if they DO get an offer at an overpriced level, the appraisal wouldn't support it, and if the buyers needed a mortgage, pfffft - waste of time!

Thanks for posting!

Jun 26, 2011 11:34 PM
Sandy Acevedo
951-290-8588 - Chino Hills, CA
RE/MAX Masters, Inland Empire Homes for Sale

Your first client, the one with the baby... Can I have ten of them, please. Thank you.

Jun 27, 2011 05:59 AM
Coral Gundlach
Compass - Arlington, VA
Real Lives. Not Just Real Estate.

Chris - Hmm, if only it were that easy.

Chris Ann - Yep - but why do agents let them do it!?  Enable rather I should say.

Dick - What we all should say is - "I know what will happen.   In 6 months you will have made that many more mortgage payments, will have a stale listing that everyone is ingoring because you've established yourself as unreasonable/unrealistic and will sell it for less than I am suggesting."   Easier said than done, but I have said it.

Karen- I think maybe so.  And that can be hard for an agent to see through I suppose.  

Ruthmarie - Most eventually do- but what a saga to get there!  And how many buyers have wasted their time looking at these homes before they see the light?

Dawn - Bravo. That takes real guts and is a sign of a fantastic agent....and true friend.

Kathleen - Yes, it should, but around here they aren't a huge issue, so it's a weak one.

Sandi - She's great!  When I can figure out to clone these gems, I'll let you know.

Jun 27, 2011 06:30 AM
Tracie Cope
Granville, Newark, Heath, Buckeye Lake & all of Central Ohio - Granville, OH
ReMax 360 - www.LCountyHomes.com

I wouldn't mind selling my house, but I can't lie to myself - we might not break even.  Sure, I could put it out there for what we would NEED to move on, but what we need has nothing to do with what the market will bear.

Jun 28, 2011 12:58 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Not every seller wants to sell. I would have to say that besides being delusional, I really do believe that the vast majority of them really want to sell.  Overpricing, unwillingness to show and slow price reductions send mix messages from those suffering from de-lusion-itis.

Jun 28, 2011 08:31 AM