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Dear TZ - I think my house is worth more than my REALTOR thinks!

By
Real Estate Agent with Remax First Realty II 0790808

Dear TZ,

I've taken your advice and chosen my REALTOR. I really like her, but she thinks my house is only worth $300,000, but I think it's worth $350,000. How can I convince her to list it at $350?

Greedy Gus

 File:Balance beam GMM.jpg

Dear Gus,

It's not easy to balance how much you want for the house and how much you can actually get for the house. The chances are that your REALTOR(R) is probably closer to the right price than you are.  After all she is a Real Estate Professional and her job is to KNOW the local market. Chances are, she keeps tabs on all the new homes in the neighborhood that come on the market and she probably previews them as well.  

Let me pose a question to you.  What if you list the house at $350,000 and you get no showings, will you be upset with your REALTOR(R)?  Probably, you'll think it's her fault that nobody is coming to see the home.  After all her job is to market your home to the buyers.  Do you know what one of the top marketing tools is?  PRICE.  If a property is overpriced the buyers won't waste their time looking at.

Suppose that someone sees your home, falls in love with it and make an offer for $340,000.  You accept the offer.  Now the buyers mortgage company will have an appraiser come in and do an appraisal on the house.  The appraiser places the value at $302,000, within 1% of what your REALTOR said it was worth.  Now the buyer's bank will not give them a mortgage.  They back out of the deal.  Now what?

The best solution and it's a relatively inexpensive one, is to have a PRE-appraisal done before listing the home.  This way you'll know EXACTLY what the home is currently worth.  If you've had an appraisal done that price is only good for about 6 months, so make sure you get a pre-appraisal just before you list and price your home at or within 1 or 2 percent of the appraised value and chances are you will get your home sold very quickly.  

Best of luck to you Gus!!!

Team Zuhl

 

 

Please note that all information is reliable but not guaranteed.  Please consult with your Real Estate professional before making any Real Estate decisions. 

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~ Wayne & Jean 

Union County, NJ - a great place to live and work!

If you're looking to buy or sell a property in Union County, call us at 908-917-4189 or email TeamZuhl@gmail.com.

 

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All opinions, information and data provided is deemed reliable but is subject to errors and omissions. Not intended to solicit other Brokers' clients. We cooperate with them fully. 

Larry O'Sullivan
Sandy, UT

W & J - good answer to a common issue. We are hardly in the business of "Told you so!"~ doesn't pay so well.

May 19, 2012 11:40 PM
Beth and Richard Witt
New York, NY
The best Retired Brokers !!!!

Well done... and great advice especially the pre-appraisal... Sellers have no idea how critical pricing is and how much money they lose from fooling around, have a great day!

May 19, 2012 11:42 PM
Fred Carver Real Estate Consulant
Retired BC Realtor - Victoria, BC
Accredited Real Estate Consultant

Hi Wayne and Jean...Great post,so true. we all know this, yet what's crazy is many Realtors take the Listings hoping to lower the price later...many end up seeing an expired listing and no sale.

Cheers, Donna Yates send me over with her re-blog.

May 19, 2012 11:50 PM
Jon Eliason
EXIT Realty Advantage Pagosa, Pagosa Springs, Colorado - Pagosa Springs, CO

Wayne & Jean ~ Greedy Gus needs to get his head out of the clouds. He'll be able to see a lot clearer when he does. The Realtor® does this kind of thing consistently and, I agree, knows the range that the home will probably sell for.

May 20, 2012 12:11 AM
Joetta Fort
The DiGiorgio Group - Arvada, CO
Independent Broker, Homes Denver to Boulder

Greedy Gus got a good answer today!  I like how you ask the question, 'if there are no showings, will you be upset with your REALTOR(R)'?

May 20, 2012 08:04 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

One of the best "comebacks" I have heard to that argument: If my plans were to just list your house I would be happy to list it at 350, but since my plan is to sell your home, we need to list it at 300.....

May 21, 2012 05:39 AM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Greedy Gus learned a lesson today!  Excellent my friends!

May 21, 2012 08:51 AM
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

Good advice. You know that the seller would be upset if the home didnt sell. The first person to blame is always the Realtor... just like in any major sport.. its easier to blame the coach than to blame the players (home owners).

May 22, 2012 06:42 AM