Good advice Ken and something I wish more sellers would adhere to.  I have turned down several listings lately due to pricing differences of opinion.

Good morning Kenneth, when I feel resistance to my market pricing vs the sellers fantasy price I always pull the Appraisal card.

Kenneth, good reminder for sellers who may be willing to negotiate their high price, but may never get the chance. The bottom line is overpriced homes don't sell. Price usually equates to motivation. Overpriced sellers usually aren't that motivated.

I agree with you- Great post!

When a seller is way overpriced, they actually help sell the competing homes!

My instant reblog of the day with this caption....This says it so simply but says it so well. Along with preparation to sell, this is about the most important step a Seller takes sell their home. No amount of outstanding marketing makes up for an overpriced listing. The Buyers simply do not see it nor do they consider it. The Appraiser idea is the right idea on unrealistic Sellers.

Homes that are priced correctly sell immediately. Homes that are overprice will lag on the market until the Sellers understands the dynamics of the market.

The reason for over priced listings is agents, brokers take them. Sending the wrong expectation and clogging the real estate information highway like stalled cars, trucks, SUV smack dab in the middle of the cloverleaf intersections. You don't make the seller hired out the appraisal and set them back $400. A seasoned professional knows the market, values, and can back up the "survey says" number that should be on the property listing. But for a larger audience, greater reach marketing with frequency has to be the two step sell quicker for a higher figure given. Nuff said.

We should be reminded that The whole idea of transacting is to get in or out of a Real Estate effectively and efficiently...Everything else follows. Good post

Good advise that can not said too often. Over pricing listings wastes everyone's time and in the end may very well cost your seller money. Remember many will look at list prices as comps when shopping, not good at any level.

I just updated stats for my listing presentation on homes expiring in our MLS and % of original list price received the sooner you sell your home. As always, these are eye-opening and if they don't convince my potential sellers to price it right... I don't know what to say.

I am working with a buyer who has been taken in my a certain condo. We have written two offers already. The condo is over-priced and the seller wants full-price. My buyer keeps coming up in price rather than going down, which would be the natural trend the longer a home sits on the market. Even though, I've advised him not to, my fear is he eventually meet the sellers price. I'm sure the home won't appraise but I don't get the inpression that the seller will lower the price based on the appraisal.

I'm not sure if I'd recommend an appraisal before the sale.  Showing comps should be sufficient;  be at the bottom of those listed and top of those sold.  Residential real estate is easy to value in most cases.

Spot on article. This is a must when meeting with sellers for the first time. The importance of pricing it right the first time has so many advantages to pricing it out of the market just to try and maximize profit. You lose money in the long run with that strategy.

HI Kenneth - so true... price it too high and you miss out big time.

 

Ken, truer words were never spoken/written. If the seller trusts the agents and it's confirmed with an appraisal, which is an extreme, they at least have the right starting point and a quicker way to closing.

Yes, I just put a house on the market and I priced it underneath a home that just went into contract by 5000. It was the sellers idea of course I just agreed with his rational. My theory is this, if we get two weeks into the listing and we don't get a contract but we have lots of showings then we are overpriced according to what the market will accept and we need to think about a price reduction. Also if we price it under the market maybe we can get into a bidding war which will raise the price. The bottom line as you stated is in the end it has to appraise so maybe it is wise to just go ahead and get an appraisal on the front end!

Terrific pricing advice! Seeking an appraiser up front to help you identify the most market-knowledgable agent is brilliant.

Excellent post Kenneth.  There is no such thing as an overpriced home that gets offers. The only overpriced homes are the homes that don't get offers.

The best house for the best price is the one that sells first. An appraisal will certainly help if you can get the seller to pay for it.

Kenneth - Pricing right is one of the most important aspects of selling a no e.

This is often the biggest battle the agent has. Ye,s overpricing a home can backfire on a seller.

Kenneth - Why won't sellers listen to us? I just had this happen to me - a man wanting to sell his family home and a few acres of farm land. Lovely property but the house is in need of updating and there are dead trees all over the property. When I quoted our suggested list price I thought he was going to have a stroke right there and then...I haven't heard back from him. I imagine he'll find some agent that's willing to put it on the market for what he wants and let it sit and sit and sit. Good post. 

A home that is priced right will sell faster in any market