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Home Seller Dilemma: Our Realtor Wanted Us to Lower the Price More & More - We Said "No more!"

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Real Estate Agent with Keller Williams Realty - The Woodlands

Price Reduced

Our Realtor Wanted Us to Lower the Price More & More - We Said "No more!"

Question: Should I Relist?

While browsing Trulia Q&A (I definitely need to do this more often- so many people needing help!), I came across a question posted in my area. Here's a portion of this Seller's question:

"Recently our home listing ended with the price being 10-15% lower than starting price, which we were told was fair market value, we personally thought we were a little low already. The realtor we used sold more high end updated new homes while our home is older and less updated. All that the realtor wanteed to do was have us lower the price more and more until we finally said no more. We want to relist it, but do not like the low price we ended at. Is it possible to relist for your old full price, or close to it, without it being stigmatized?"

Here's my response- which I'm sharing because I think it might help other frustrated Sellers who happen across this blog! (And because I put too much effort into it to let it disappear, forgotten in cyber space!)

Dear John,

I can understand your concern and frustration! While lowering the price can have the effect of drawing more buyers, it's definitely not the only way- and a skilled REALTOR® should be able to help you price your home correctly at the time of the initial listing. It may be that your home was priced too low, but lacked the effective marketing and proper exposure to attract Buyers!

The successful presentation of your home to Buyers is built on these three foundations:

• Price
• Condition
• Marketing

In consultation with your REALTOR®, you should receive valuable insights into the current market values in your neighborhood - this will aid you in determining a fair market price. You should be presented an in-depth Comparative Market Analysis (CMA), which will review similar properties to your own that are active on market, pending, or recently sold, in your neighborhood. Additionally, I provide an Absorption Rate, Activity Index, and Historical Data to give us the greatest level of insight into the market trends and values.

Your REALTOR® should also provide you insights into repairs, updates, and home staging that may be necessary to improve the Condition of the home. With recommendations for cost-effective projects, reputable contractors and a simple list of do-it-yourself home staging tips, I can provide my clients with a great deal of assistance in this area.

Finally, your REALTOR® should serve as your Marketing Expert. This includes providing your home the needed internet exposure through an MLS (such as HAR.com), the agent's personal website, Trulia.com, and a host of other sites that will target prospective buyers seeking a home like yours. Social Media (Twitter, Facebook, Blogging) are also essential marketing tools. At the local and community level - beyond the basic yard signage and flyers - your REALTOR® should be marketing your home to local brokers and agents who may have clients interested in your home. This can be done through an effective schedule of Open Houses. Your neighbors should also receive direct mail or a personal visit to inform them about your home.

These are all services that I provide my clients as their dedicated REALTOR® and their home's professional Advocate. I would be honored to answer any more of your questions or give you further advice!

Sincerely,
David Companik, REALTOR®
Keller Williams Realty - The Woodlands
(936)349-7075 | david@davidcompanik.com
Facebook.com/DavidCRealestate

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Homes for Sale in The Woodlands, Spring, Magnolia, Conroe

David Companik, REALTOR® | Keller Williams Realty - The Woodlands

HAR.com Client Experience Rating: 4.98 out of 5

Connect with David online: Facebook LogoTwitterLinkedInYouTube Channel

 Keller Williams Realty - The Woodlands

 1401 Woodlands Parkway, The Woodlands, TX 77380

Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Good answer, David

    We usually think "Lower the Price", but that may not be the reason for the No Sale.

Jan 13, 2012 05:42 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years
Good points, however it is important to check closing prices for the area as some places are seeing drops of 5, 10, and 15 percent.
Jan 13, 2012 05:44 PM
David Companik
Keller Williams Realty - The Woodlands - The Woodlands, TX
Realtor ▪ The WoodlandsTX ▪ davidcompanik.com

Fred, thanks for the comment! Presentation of the home is definitely composed of more than price - although a good price is paramount.

Michelle, that's a great reminder and certainly true of many markets. John seems especially concerned because the priced dropped to "10-15% lower than starting price, which we were told was fair market value..." It sounds like he's saying that their REALTOR® had told them the starting price was fair market value. If the agent didn't make helpful suggestions beyond price reductions, there could be other negative forces at work preventing a sale.

Jan 13, 2012 06:02 PM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Good answer.

But all sellers think their house is valued more than what realtors think it is anyway, so it isn't unusual to run into sellers who are averse to price reductions. They all think we just want to reduce the price so that we can get paid. Sometimes selers don't really listen to what you say. And when they agree to price reductions, they do it in such itty-bitty increments that it hardly makes a dent...and it doesn't generate the desired action.

Jan 13, 2012 07:00 PM
J Perrin Cornell
Coldwell Banker Cascade Real Estate - Wenatchee, WA
Broker, ABR, VAMRES

Yup... the old "nobody has an ugly baby" adage often applies. You are correct it is a whole range of things other than price but remember in a falling market (and this one still is though not as bad) the best price you are going to get for your house is today and you are not selling your house today but a month (?) from now... so you need to price ahead of the market and remember all those closed prices in your CMA are HISTORY and old the day they closed... 

Jan 14, 2012 01:30 AM
Anna Dovger
Add Value Home Staging LLC, 281-704-6607 - The Woodlands, TX
Home Staging -The Woodlands, TX

David , you gave great advice. I don't understand the seller who wants to play with the same game. His house didn't sell, so why list it at the same price and wait for another 6 month? If the house is old and has no updates there is no way it will sell for dissent price. Today's buyers are lazy and want ready to move in product, no one wants to carry on all the repairs and live in messy supposedly new house. This seller should invest in necessary updates and than he can list his house again at the market value.

Jan 15, 2012 05:19 AM
Lisa S. Mullins
Glen Allen, VA

Sometimes it is very hard to let the seller know 'the baby needs some improvements!'     I personally have been in the same situation.    It is  hard to hear.     Good blog item David!

Jan 16, 2012 03:22 AM
David Companik
Keller Williams Realty - The Woodlands - The Woodlands, TX
Realtor ▪ The WoodlandsTX ▪ davidcompanik.com

Pacita, thanks for your comment! You're certainly right that Sellers often have unrealistic expectations and are hesitant to lower their price as needed. In this case of this Seller - presuming all his facts are straight! - his agent told him the initial list price was fair market value. If that's the case, why were so many reductions needed? Likely the number was too high, but it could have been:

  • Poor staging
  • Bad condition
  • Lousy photos (this is pretty common!)
  • Lack of effective marketing

So I wanted to paint the broader picture of expertise and compentency required of the agent who would sell John's house.

Perrin, you are very right! The declining markets nationwide are still surpressing home prices. That's why I study Absorption Rates, Historical (8 Quarter) Sales Data, and the Activity Index to create a comprehensive view of the local market trend. This will help inform the list price after comparing the subject to comparable active, pending, and sold homes.

Anna, buyer's are definitely looking for a finished product! I think in the case of this Seller he may not have had a communicative agent who really brought the details to his attention. Or maybe his agent did, but he ignored it!

Lisa, thanks for your comment! Yes, it can be like pulling teeth, but the truth of a home's curb appeal and condition must be told!

Jan 16, 2012 12:41 PM
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

GREAT REPLY David! So true that marketing is a HUGE factor when it comes to selling a home. Some Agents feel they just need to stick up the sign and list it on MLS and Realtor.com. Not the case. Too much information on those sites and it doesnt help your home stand out. Other marketing efforts are needed for sure. Hopefully you'll hear back from those people.

I've viewed questions on Trulia. In all honestly, Ive seen a lot of bad information shared and I felt like I was always replying to contradict some someone else wrote. So, to save myself some heartache, I stopped reading the quesions on Trulia and Zillow. Plus, it was always irritating when someone that was not in the area was answering. In many of those cases, it explained why they were giving wrong information to begin with.

Anyway, good luck and again, great reply.

Jan 18, 2012 09:37 AM
David Companik
Keller Williams Realty - The Woodlands - The Woodlands, TX
Realtor ▪ The WoodlandsTX ▪ davidcompanik.com

John - You're right! An agent can list features all day long and fill out every box, but if the photos are poor - or simply reflect a poor condition - that's a major strike against the home and a deterent to showings. And beyond the MLS, a home really needs personal, relateable exposure through sites like ActiveRain - that can help the home grab attention.

Combating incorrect advice and info seems like a constant struggle in this industry! We must all strive not to be the source of it.

Thanks for the comment!

Jan 20, 2012 07:19 AM