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When the market speaks to you, are you listening?

By
Real Estate Broker/Owner with Richard Weisser Realty

When the market speaks to you, are you listening?It is human nature to assign blame when things do no go as expected. After all, it is much more comfortable to rationalize a flaw in one’s thinking than it is accept a different reality.

But if a house is properly marketed, and has had multiple showings with no offers, the market is speaking loud and clear. At that point, a seller can choose to ignore the message and continue to pursue the exercise in futility.

Even more to the point is this: if there have not been any offers following a significant number of showings then the chasm between true market value and price is so wide that a minor correction will have little or no effect.

The attitude “I really don’t need to sell” is nearly always a self-fulfilling prophecy.

Because there are plenty of others that DO need to sell.

And they are pricing their properties appropriately.

Comments (20)

Jon Eliason
EXIT Realty Advantage Pagosa, Pagosa Springs, Colorado - Pagosa Springs, CO

Richard ~ Niiice. I am still seeing those owners that "Don't have to Sell" I think they are hoping for a sucker to show up. (Either that or a miracle). I've noticed that some of them bought these homes between 2006 and 2008. If they don't NEED to sell the home, why is it for sale? Great post.

Feb 15, 2012 01:10 AM
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Absolutely correct!  It would be safe to say that an overpriced property is used to sell others.

Feb 15, 2012 01:11 AM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good moening Richard. Right on point and too true. Well said, thought and written. Suggested.

Feb 15, 2012 01:17 AM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

The fact it is having showings is good. But leading the market means nibbling the price if the listed one is not causing the real estate closing car to start, stay running to delivery everyone to the conference room. To the scene in the movie where you the real estate professional slide the keys across the recently pledged imitation wood surface of the long table. While a check with your name spelled right is passing those keys. Headed in your direction.

Feb 15, 2012 01:17 AM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Richard a very real situation and sadly one we Realtors have to deal with far too often. 

Feb 15, 2012 01:34 AM
Edward Gilmartin
CRE - Boston, MA

It is definitely hard to market an overpriced home in a flat market. The seller should be told that even if a buyer does make an offer a bank is really putting up more money and will hire an appraiser to check and make sure the home is worth what buyer is offering.

Feb 15, 2012 01:35 AM
Mark Delgado
houses for rent, Solano County & Glen Cove - Benicia, CA
Benicia and Vallejo, Property Management, rental h

I do agree with your experienced opinion. The market dictates price expectations. It can be possible to add value that helps a price but that only goes so far and there is more opportunity to do that in property management. 

Feb 15, 2012 01:37 AM
Jean Hedren
Gordon, WI
Northwest Wisconsin

Richard, it still amazes me that sellers are STILL saying that. The sellers of my latest listing just said that. We talked. They agreed to bring the price down. 

Feb 15, 2012 01:47 AM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Richard.... agents continue to list overpriced properties and the sellers continue to blame the fact that the property didn't sell on the agent.... stop taking overpriced listings....

Feb 15, 2012 01:47 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Amen!  I have a few sellers that are in this category, and I always pass on the listing...I don't need the headache!

Feb 15, 2012 02:05 AM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

Spot on! If they don't need to sell I don't need to list. Suggested, of course!

Feb 15, 2012 02:11 AM
Nina Rogoff
Boston, MA
Wix Websites for Real Estate Agents

If only agents would walk away from those listings, it might have some impact on the sellers. Most of them are not going to go the FSBO route. It's a waste of everyone's time.

Feb 15, 2012 02:13 AM
Kristen Wheatley
Better Homes & Gardens | The Masiello Group - Brunswick, ME
Supporting Success - Best Job in the World!

So true!  Properties here that are priced well are selling quickly, and many receive multiple offers.  Some sellers seem to think that means we are turning to a sellers market.  Big mistake!  We don't seem to have anything in the middle here when it comes to days on market.  They are either 1-20 days on market or over  200. 

Feb 15, 2012 02:17 AM
Bob Jakowinicz
National Realty Centers Livonia--Bob Jakowinicz - Livonia, MI
Michigan Real Estate Agent-- MI Real Adventures

Pretty much true with everything we do in life.  If we just take the time to listen the markets really do speak to us.

Feb 15, 2012 03:08 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

This actually reminds me of a topic I wanted to cover again, but from a different perspective.  REO pricing.  I heard yet another home owner in Northern Virginia bemoaning the fact that REOs are bringing down his home value.  REOs price at market quicker than a traditional seller will because there is zero emotional attachment and they NEED to sell. 

Feb 15, 2012 04:16 AM
Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

Not sure what more can be said except "Amen."

Feb 15, 2012 05:15 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Richard I looking around for a retirement home for long time clients and ran into some 'career' listings with over 450 days on the market.  Are you kidding me?  That's just silly.  Price is now down to less than half of where they started.  It's a good buy now so I'm kind of glad they took their sweet time - and didn't need to sell. My clients are happy campers to have found such a gem!

Feb 15, 2012 05:38 AM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Jon...

Good comment. They "magic" just isn't going to happen! THX.

Kathy...

They make great comparisons, don't they.

Sheila...

Thanks you so much for the support. I really appreciate it!

Feb 15, 2012 05:39 AM
Marcia Kramarz
Re/Max Executive Realty - Medway, MA
CDPE,LMC,CBR

And how often do we hear that - I don't need to sell - It should raise a big red flag for all of us!!

Feb 15, 2012 06:54 AM
Russell Lewis
Realty Austin, Austin Texas Real Estate - Austin, TX
Broker,CLHMS,GRI

Richard, you have the gift of defining and questioning an issue in such a succinct manner! It's just not going to happen for folks who are unrealistic!

Feb 16, 2012 01:05 AM