Overpriced Listings: take them or drop them?

 Mimi our new one year  old Rhodesian ridge back family member. This has nothing to do with the subject matter, but I like to show her off. She was rescued in Homestead near Miami.

 This Blog was originally a long comment in response to the very interesting Post by Jill Glanzerof Gainesville Florida Extreme Market Conditions. I started that comment and had just to much to say about the subject and was taking to much space. I didn't want to overcrowd her Post.

    The point is how should we advise sellers who will not lower their price or takes for ever to realize that their home is for example $20,000 less then they think? 

    Drop the whole thing and move on?

    List overpriced home and tell the Sellers:" we can test the market with this price for starters"?

  We are in the business of selling properties and there is nothing worse then having an overpriced property.We have all been there. otherwise more properties would be sold! It will just sit there and Realtors will just use it as an absurd comparable. Should you use patience and advise the Sellers to stage their home, upgrade their curb appeal, keep in touch with their regularly and show them clearly that they are overpriced? You may do the later as long as you told them in the first place that you may have to lower the price of the home if it does not get any offers within 2 months.   

   Of course if they really can wait 10 months, they may get closer to their asking price in Gainesville.But there is a reason they listed. They want to sell their home! Perhaps the honest thing to say to the sellers at the listing presentation is that their home is worth $20,000 less then it is now agreed to be listed out, but they will have to be willing to adjust and lower their price in the near future if the home is not getting the right feed backs or...offers! I do realize that short sales and foreclosures in Lee County and all around the USA have pulled down home values drastically but agents do know what the market value of a home is.

Now...if they take 6 months to lower their price $15,000 and meanwhile they are paying a mortgage of $1,200 x 6 plus insurances and property taxes, you might be able to convince them off the bat to lower the price....of course its easy to say. It is after all their home. What is new? They want it all. They want to buy low and sell high. (Truth be told: how objective are agents when they sell their own homes?)  In this market this will not happen. Sellers have to be reasonable. We are in the business of selling properties and we have to tell the truth to these sellers. The last thing we want is one of these listing staying 300 days on the market. That does not help the Sellers. They may have an eye on a particular price range of homes which may not be available later on or the interest rate will go up. Also: how much time and money will the agent loose if she or he is stuck with an overpriced property? Not to mention that the Sellers will not be able to buy that other home.We have to look at the whole picture.   

   I have no problem telling the sellers point blank the true market value of their home. We can be a bit flexible and adjust the price within the next few months. But why bother? Give it your best shot and that means the home will be more salable. Case in point: my wife thinks our home is worth $30,000 more then I do.At least its not $50,000 more! Perhaps she thinks that I will upgrade the home. She is right. Luckely I like to tinker around. The Sellers? They wanted money in their pocket yesterday.

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LLoyd Nichols
Right Choice Realty LLC
6360 Presidential Court, Suite 4
Fort Myers, FL 33919

cell: 239-810-2980
Fax: 239-463-4826
home office: 239-463-5217