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2 Ways To Sell A House

By Christa Ross

Real Estate Agent with RE/MAX Select Realty - REALTOR and Green Homes Specialist RS310271

September 23, 2013 01:38 AM

A tale of two sellers...

Seller #1

Priced their home so that it was obviously the best home available at the price in their market, helped by the fact that inventory was low. Day one they had 10 showings and two offers. Negotiated a full price offer, sold their home and moved a month later.

Seller #2

Priced their home "a little bit high to allow for negotiation" even though there were several other comparable homes that were priced lower. Had a few showings, no offers, 30, then 60 days go by, did a small reduction, a few more showings, no offers, price reduction, a few showings, no offers...still waiting.

Which would you prefer?

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Christa Ross

RE/MAX Select Realty - REALTOR and Green Homes Specialist - Pittsburgh, PA

Helping you buy and sell Pittsburgh's Best Homes

Marc, I agree, I wish all were like seller #1, it would make everyone happier.

I find it interesting even when presented with the comparables how many people feel like they need to leave so much extra room for "negotiating", the only thing they really do is give themselves more room to come down on their price after weeks of waiting for someone to buy with no luck.

Sep 23, 2013 03:45 AM

Helen and Larry Prier- Re-Max Gateway - Residential Real Estate

RE-MAX Gateway- Residential Real Estate Sales - Anacortes, WA

Anacortes & surrounding Skagit & Island Counties

Christa, Short and to the point. In the end Seller #2 will probably get less than if they had priced correctly from day 1

Sep 23, 2013 03:56 AM

Kelly Young

The Platinum Group Realtors - Colorado Springs, CO

Colorado Springs Real Estate ~ 719-226-0126

Christi, great example of what works and what does not. I think technology is not helpful here in that there is a lot of "thought" out there that you need to build in negotiation room.

Sep 23, 2013 04:29 AM

Jill Sackler

Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY

LI South Shore Real Estate - Broker Associate

I love your presentation - short and to the point. Homeowners always seem to fantasize that someone will come by, love the house as much as they do, and offer a million dollars for it.

Sep 23, 2013 04:44 AM

Richard Arnold

Keller Williams Realty East Valley - Tempe, AZ

Realtor - Tempe, Chandler, Mesa, Gilbert, Phoenix

Every day is a great day to do comps and let your seller know you are working in their best interest by pricing appropriate to the market!!

Sep 23, 2013 04:53 AM

Mike Cooper, Broker VA,WV

Cornerstone Business Group Inc - Winchester, VA

Your Neighborhood Real Estate Sales Pro

Christa, the overpriced listing is the 800 pound elephant in the room. It seems that no matter how much you tell a seller that the house is over priced, they do not listen (far too many anyway).

Sep 23, 2013 05:04 AM

Kevin A. Guttman-Author, ReverseMortgageSpecialist

NMLS #384936 - Colorado Springs, CO

877-251-9709

Christa,

What a great contrast!

Price it to sell baby!

Good job!

Kevin

Sep 23, 2013 05:09 AM

Margaret Goss

@Properties - Winnetka, IL

Chicago's North Shore & Winnetka Real Estate

I'm going through this right now with a seller! We can tell these sad tales only so many times before we have to let them (reluctantly) find out the hard way.

Sep 23, 2013 05:29 AM

Carla Muss-Jacobs, RETIRED

RETIRED / State License is Inactive - Portland, OR

And they may still wait so more because the slow season is creeping in. Not sure about your market but we typically see a slow down.

Sep 23, 2013 06:08 AM

Christa Ross

RE/MAX Select Realty - REALTOR and Green Homes Specialist - Pittsburgh, PA

Helping you buy and sell Pittsburgh's Best Homes

Helen and Larry, I agree, in the end the seller #2 will probably get less for their home, especially if you add up the cost of their time.

Margaret, sad but true, sometimes we just have to let them learn on their own.

Sep 23, 2013 06:11 AM

Laura Cerrano

Feng Shui Manhattan Long Island - Locust Valley, NY

Certified Feng Shui Expert, Speaker & Researcher

Yeah it can be trial and error at times if people don't want to hear from the pros. I agree with Margaret on this one.

Love and light,

Laura

Sep 23, 2013 06:37 AM

Elise Harron

Dirt Road Real Estate - Kingman, AZ

Rural Vacant Land and Development Specialist

Wow, what a difference! Then Seller # 2 gets so discouraged that listening to reason seems like a defeat and the ego becomes involved, etc, etc.

Sep 23, 2013 12:16 PM

Troy Huerta

SRE Technologies - La Jolla, CA

Changing the way Home Buyers BUY!

Seller #1 situation here ... two lowball offers, Southern California market cooling, interest rates are fluctuating and we've been on the market 3 weeks! Wishing we had your seller #1 outcome for our seller #1 scenario! (Our home is $40 per square foot less (based on sold comps) than the home a few doors down! (They are asking $20,000 more for 800 square feet less home!)

Sep 23, 2013 01:49 PM

Praful Thakkar

LAER Realty Partners - Burlington, MA

Metro Boston Homes For Sale

Christa, with your presentation, it will be hard to pick up option #2. However, pricing is an art - and in this market, I'd still go with #2 with marginal higher price!

Sep 23, 2013 03:20 PM

Kat Palmiotti

eXp Commercial, Referral Divison - Kalispell, MT

Helping your Montana dreams take root

Seller #1 would definitely be better for the seller- full price and speedy; Seller #2 will probably end up with a final price below market if the house continues to sit.

Every seller is different!

Sep 23, 2013 08:16 PM

Goran Utvic

Goran Utvic Real Estate Broker/Construction Consultant - Chicago, IL

Chicago 2 Flat Specialist

Seller #1...new listings get the most action during the first two weeks with buyers that are action takers that will move on a home that is priced right...pricing high to test the market almost always nets the seller less money.

Sep 23, 2013 10:25 PM

Rosie Crow

Serving Sugar Land, Richmond, Rosenberg, Missouri City - Sugar Land, TX

Exceeding Expectations. Delivering Results

Sellers needs to realize that buyers are very savvy these days. The market today is very transparent. Buyers have access to all the information they need to determine the market price range for a given property. As I always tell my clients, "There is a tale between two markets. One that is priced to sell and one that is priced to sit. Which one do you want to be in?"

Sep 24, 2013 09:51 AM

Mohan Tarneja

hey christa i like seller 2 as negotiation happens with me all the time.. ;)

Sep 24, 2013 08:33 PM

Brian Park

Park Realty Investments - Murray, UT

As I have told many sellers the price you list it at determines how fast it sells and for how much and the pricing strategy is determined by the current market, not me, not you. Both our jobs are to bring it on the market at the right price.

At one time my main personal office was in Orinda across the bay from S.F. The Frisco market was hot, I know the snob hill ladies don't like the Frisco and want to drape it in silk but that was the side of Frisco I grew up with and loved. Any way a broker friend of mine called me and said help, come check out a listing of mine. He had priced it at the $750k he hoped to sell it at. I told him to reduce the price to $675k and he turned green, and said the market is hot, we can get the $750k The sellers looked disgusted and asked if I was an idiot. I said it is what I would do if it were mine, just do it, your not getting any offers and if you get one you don't like you don't have to sell it. They did and 3 days later my friend is calling saying they have a solid $850k deal. I had just gone out to dinner with him and our wives a few weeks before and said now is the time you will get the auction effect in the Frisco marketplace. I guess he was more interested in his veal shank at the time then the marketplace situation. Never did get a call from his sellers taking back the idiot comment.

Sep 27, 2013 03:04 AM

Inna Ivchenko

Equity Union - Calabasas, CA

Realtor® • GRI • HAFA • PSC • Short Sale • Probate

What if i tell you that for overpriced houses that are willing to negotiate, there are buyers who want to buy such houses, those who are looking for a deal? True story: One of my clients insisted to offer less than the listing price for everything he liked. Because this is how his friend bought his house. He wanted a ''deal''. Needless to say, that we were loosing house after house, since there were other offers better and higher. Comps were ignored, any reasons that the listing price was right were ignored. Finally I decided to act differently, I found the house for them that was overpriced, 3 month on the market, no offers, no price reductions. I brought them in, even they thought it is not in their budget since they had so many rejections, they liked it, i wrote the offer for 10% less, cash. Offer was accepted and the escrow was closed in 7 days. Sometimes a client want that space to negotiate.

Oct 13, 2013 11:55 AM

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Christa Ross

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Full-time experience, creative home marketing & outstanding service for Pittsburgh's home buyers and sellers. Real Estate agent serving Allegheny, Butler and Westmorland County. Pittsburgh, Shadyside, Regent Square, Point Breeze, Edgewood, Churchill, Monroeville, Penn Hills, Plum, Murrysville, Oakmont, Hampton, Richland, Cranberry and North Hills.

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