Whoever Told You Your House is Worth Half a Million Dollars is Giving You Bad Advice

By
Real Estate Broker/Owner with Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes

 

Whoever Told You Your House is Worth Half a Million Dollars is Giving You Bad Advice

 

About two weeks ago, I received a phone call from a homeowner who wanted to list her house for sale.  But here's the catch.  She wanted her home listed for what she had determined it to be worth.  She wanted $500,000.

I'm familiar with the home, but I made a trip to meet with her and to discuss recent sales in the neighborhood.  After showing her detailed information on area market trends, recent sold properties and market times, she pushed aside the information I brought her, commenting "I need to get five hundred thousand for my place. If you can sell it for that, I'll list my house with you".

I reminded her that all the market data we had reviewed points to a likely sale at just under $400,000.  She acted outraged.  "My house is worth way more than that".

My next question to her was "where are you getting your information on the value of your home?"

She launched into a lengthy speech about how her daughter (who lives in Utah) told her that the houses "just like" mom's place "are selling for half a million out here".  And her elderly neighbor told her that listing agents are all "pricing houses ridiculously low just to make a fast buck" and advised her to "stick to your guns".

 

Sellers, where on earth are you getting your advice about the value of your home??

 

If you don't trust what an agent is telling you, do some research.  Don't waste time listing to your grown children (who have a vested interest in the value of your estate) about how house prices are supposedly the same all over the United States.  When a neighbor starts to offer advice, try asking them how recently they've sold a home in your area.

Do your homework.  Turn on the news or read the business section/real estate section of a local newspaper.  I'm not talking about the National Enquirer.

Learn how to use the Internet and Google Search. Gather some reliable statistics about what homes are selling for in your neighborhood or vicinity.  Your laptop computer is capable of more than sending and receiving email.  There is an abundance of available information on the Web about specific real estate markets, organized by city, state and zip code.

Turn off the "Oxygen Channel" or "Lifetime Television" and watch a little financial sector news.  Pay close attention to statistics about foreclosure rates and the backlog of bank owned properties waiting for qualified buyers.

 

Don't point to your property tax statement or pull a five year old appraisal out of a desk drawer and tell me that's what your house will bring in today's market.  If you don't like my advice, show me some tangible proof which demonstrates your knowledge of the area market is more accurate than what I'm providing.

 

When you've done your homework, let's chat again about how much you "need to get" for your home.

 

 

 

 

 

 

Posted by

Contact Broker Eric Kodner with Wayzata Lakes Realty about Minneapolis & Saint Paul area properties, including Lake Minnetonka, Edina and the Minneapolis City Lakes area (Lake Calhoun, Lake of the Isles, Lake Harriet). We also sell on the Saint Croix River and on Lake Superior, including Bayfield, Wisconsin and Madeline Island homes.  With sixteen years experience marketing and selling waterfront properties in Minnesota and Wisconsin, we know Lake Minnetonka and Madeline Island real estate.

Wayzata Lakes Realty LLC (Minnesota) and Madeline Island Realty LLC (Wisconsin)

Real Estate Brokerage licensed in Minnesota & Wisconsin

Phone or Text Message 612.670.2539

EMKodner@Gmail.com  or

MadelineIsland@Gmail.com

Wayzata Lakes Realty

 

 

 

 

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Rainmaker
1,239,346
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

5 years ago, someone told my sister that she could get 2X what she originally sold her house for a few years later...that was THEN and this is NOW works and needs to be remembered!

Nov 20, 2011 03:41 AM #1
Rainmaker
565,890
Eric Kodner
Madeline Island Realty - La Pointe, WI
CRS, Madeline Island Realty, LaPointe, WI 54850 -

Wallace - Don't you just love those words "someone told me my house is worth lots more"?

Nov 20, 2011 03:50 AM #2
Rainmaker
454,015
Brian Rugg
Rugg Realty LLC Sun City Texas 512-818-6700 - Georgetown, TX
Sun City TX Real Estate - Georgetown, TX Real Est

Hello Eric:

There is plenty of bad advice to go around. Adult children, optimistic real estate agents and Zillow all contribute to the misinformation.

Nov 20, 2011 04:08 AM #3
Rainmaker
1,124,644
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Eric -  It's too bad that sellers get poor advice and hold onto that advice when they are presented with current information, data, and facts that tell a different story.  Hopefully that owner will share your information with her advisors, and they'll come to a different conclusion.  Good luck.

Nov 20, 2011 06:01 AM #4
Rainmaker
565,890
Eric Kodner
Madeline Island Realty - La Pointe, WI
CRS, Madeline Island Realty, LaPointe, WI 54850 -

Brian - And it drives agents crazy when a client comes up with completely irrational, illogical and nonsensical arguments about why their house is worth way more than every other home in the same neighborhood.

Nov 20, 2011 05:09 PM #5
Rainmaker
565,890
Eric Kodner
Madeline Island Realty - La Pointe, WI
CRS, Madeline Island Realty, LaPointe, WI 54850 -

Laura - I asked this seller if she could produce one piece of evidence to support her argument about price.  I'm still waiting for her reply.

Nov 20, 2011 05:11 PM #6
Rainmaker
820,488
Maureen Bray Portland OR Home Stager ~ Room Solutions Staging
Room Solutions Staging, Portland OR - Portland, OR
"Staging that Sells Portland Homes"

Eric ~ I recently met a seller who told me the price he wanted for his home and he added that he plans to sell it himself.  That's likely a good thing, because no agent in their right mind would accept the listing at the price he thinks he can get!  It seems that sellers need a lot more educating about how to select a good agent and then follow their advice.

Nov 27, 2011 08:49 AM #7
Rainmaker
565,890
Eric Kodner
Madeline Island Realty - La Pointe, WI
CRS, Madeline Island Realty, LaPointe, WI 54850 -

Maureen - I've seen sellers fail over and over again to price and sell their own homes.  Overpricing is almost always the reason.  It's truly a rarity in our market when a FSBO sale succeeds.

Nov 27, 2011 12:36 PM #8
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Rainmaker
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Eric Kodner

Wayzata Lakes Realty: Twin Cities, Madeline Island
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