Because the price is still too high!
I had a seller ask me recently to include a $5000 selling agent bonus on a very small home in Silver Spring. After a week or so of no showings she asked me to put the text in bold so that agents could really see it. Causing me to look like this:
Unfortunately, this is only one of the fallacies she believed rather than my advice, mostly because she looked like this...
Fallacy #1: Everything else in the county is more expensive so those who want the least expensive home will flock to her home.
- Fact: Can't say as I've ever even once had a buyer say to me, "take me right to the cheapest house in Montgomery County. That's exactly where I want to live!" Most pick an area and then find the house that suits their price range. If they don't want to live in your area, cheapest house won't matter!
Fallacy #2: Every home will attract a buyer so if we just stay at this price a buyer will come to us eventually.
- Fact: Not every home will sell in this market. Many will fail and do as evidenced by the high number of expired and withdrawn listings.
Fallacy #3: Put the bonus in bold so agents can see that they'll get paid more for selling this house.
- Fact: An agent needs a buyer interested in the property first. When it's priced so high no one shows the property ever, the bonus ain't gonna cut it. Agents aren't stupid.
Fallacy #4: We don't just want some investor to buy our house for nothing.
- Fact: When your home is in an area of more than 50% foreclosures everyone's an investor. You are chasing the market down week by week by week. Those that are selling are getting waaaaaay under the active listings to sell.
- Fact: When an area is hit like this it will be years and years before the market comes back enough to make the money you wanted
- Fact: Your strategy allowed you to succeed in not giving your house away for nothing. Unfortunately, you got nothing as a result. Worth it?
She's a dear. I like her... she likes me. But I declined to continue working with her because those two faces above can't really live in harmony....
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