"I Wanna List My Home For What He's Listed At!"

By
Real Estate Agent with RE/MAX Compass, formerly RE/MAX WHP 0524642
https://activerain.com/droplet/BMZ

Homes don't go for list prices. They go for recently sold prices.

 

Home sellers list their homes at different prices for all different reasons. I've met sellers who intentionally listed their home at a very high price in hopes somebody would come along and pay cash and not realize they were doing so. The seller wasn't "serious" about selling. So they over listed.  If they don't sell, they don't care.

There are sellers who over list their home because they are going through a divorce. Spiteful people do spiteful things, especially when they are at war with their soon to be Ex. A wife may want to under sale her home so she can pay her husband less. And a husband may over list in hopes to financially starve out his wife. Then there's the spouses who would rather just light a match with the other one in it.

Sometimes sellers raise their list price for no reason while their home is on the market. They think this sudden increase will capture a new area of buyers. It's like not like not liking the food at a local restaurant but coming back with sunglasses on assuming this will somehow change your experience for the better.


List prices don't generally set value. They do not add value and they do not set a value benchmark in your neighborhood. You can position your home on the mls around list prices, but you should rely more on what homes have "sold for."

I once had a neighbor list his home for 20% above comparable sales. He didn't care about appraisals as he was sure somebody would come along and "write a check." The home never sold.

You can't look at area new construction either. I've dealt with  many home sellers who look at their same builder/floor-plan and assume their home has to be worth somewhere close to what the THEY have their homes listed for. New homes get more money because first time buyers and barely qualified buyers are more apt to make an impulsive decision. Builders routinely over list their homes by 10-30%. They do this so they can have room to negotiate. These built in incentives are usually a trip down the primrose path.

Resale to Resale. Sold to sold. That's the best way to determine value. Other factors like lot location, floor-plan, improvements, neighborhood trends and quality of schools are all "value boosters."

To find the "sweet spot" you need do nothing more than be realistic and open-minded when it comes to finding a good strategic "list price."

 

Posted by

 

 
Greg Nino
, Houston area Realtor®.
Helping residential buyers, sellers and tenants 7 days a week.
Available @ 832-298-8555 

RE/MAX Compass (Formerly RE/MAX WHP)

www.GiveMeMyHomesValue.com

www.EverydayHoustonHomes.Com

 

 

The information contained in this blog is believed to be reliable and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments disclaim any implied warranty or representation about it's accuracy, completeness or appropriateness for any particular purpose. All information is copywritten and the property of Greg Nino.  

 

 

 

 

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Rainmaker
759,452
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Greg, some people just seem not to realize, or just don't care how much time agents spend comparing and evaluating comps so they can price homes close to what the house should sell and appraise for.

May 30, 2012 04:08 AM #1
Rainmaker
1,209,283
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Greg

This is what a great Realtor does, make certain the seller listens and lists correctly. I am certain you advise all your clients correctly and get the home sold. It is not fun to have a property on the market these days and listing just to have it listed gets old quick. Hopefully these over-priced sellers learn quickly and take the right steps. Good luck with your sellers, cheers cvc

May 30, 2012 04:29 AM #2
Rainmaker
1,559,139
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Overlisting is just not selling your home. Good post.

May 30, 2012 07:02 AM #3
Ambassador
3,113,723
Paul S. Henderson, REALTOR®, CRS
RE/MAX Northwest. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

It is so hard for people not to compare their property to the loser down the street. If his house doesn't sell, do you wanna imitate that trend? 

May 30, 2012 09:01 AM #4
Rainmaker
974,759
Beth and Richard Witt
Long Island Cash Home Buyer - Huntington, NY
Long Island Cash Home Buyer 516-330-6940

I love to ask people if they want to list their home or sell it... For most folks what we think matters little it's  what they think that rules.. I guess it's one of the reasons we get paid the big bucks... Kidding, kidding...

May 30, 2012 10:17 AM #5
Rainmaker
889,755
Sussie Sutton
UTR Texas Realtors - Pearland, TX
UTR TEXAS Realtors - Rep for buyers and sellers.

I had a seller tell me what amount he wanted to list his home for... this was over a year ago. I told him what I thought it should be listed for. I folded, listed for what they wanted, and made them promise to lower the amount if it did not sell in X number of days. They did not keep that promise. My sign came down. Many months later it was relisted for what I HAD WANTED TO LIST IT FOR TO BEGIN WITH.

It recently sold at the price I told them I thought they would get in the end.  I can't wait until I see them so I can smugly smile at them. They will know what I am thinking.

May 30, 2012 11:35 AM #6
Rainmaker
442,659
Dianne Goode
Raleigh Cary Realty - Raleigh, NC
Realtor/Broker

A perennial problem.  Sellers always seem to think their house is special.  I tell them that buyers don't care what they paid -- or what they need to get.  Buyers only care about getting the best home for their money.  I tell them and sometimes they hear me.  But often they don't.

May 30, 2012 10:45 PM #7
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Rainmaker
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Greg Nino

Houston, Texas
Providing Real Estate Advice 7 days a week!
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