But My Neighbor's House is Going to Sell at Full List Price

By
Real Estate Agent with Long and Foster REALTORS®, Gainesville, VA VA License # 0225089470

But My Neighbor's House is Going to Sell at Full List Price

If I had a nickel for every time a real estate agent heard that on a listing appointment, I would have an oasis of a back yard.  Pool.  Composite deck, partially screened.  Stamped concrete patio.  And don't forget the hot tub.  Oh...and landscaping.  I'd probably have a lot left over to put toward fun trips to...like the fantasy land these neighbors are living in.

Whenever a real estate agent hears from a potential client, be it buyer or seller, how good a deal their buddy or neighbor got, we internally roll our eyes.  If it's a seller, they lied to by inflating their sales price.  If they are a buyer, they lied to you by decreasing the amount they paid.  No one wants to be perceived as a loser.  So no matter what your friend or neighbor told you, VERIFY IT.

The last listing appointment I was on where someone was telling me that their neighbor was going to sell at full list price, which would have been a record high in the neighborhood, I suggested that perhaps their neighbor was stretching the truth.  Just about every seller does to their neighbors.  What do they care?  They are on the way out.  My response was not well received.  I definitely didn't get hired and that's really okay.  

Sure it would've been nice to market a beautiful home for sale, but at a reasonable price.  You can't base your list price on the word of your neighbor whose home hasn't closed yet.  These potential sellers did.  And in a market where homes like theirs were selling in two to three weeks, they have been on the market for nearly two months.  And the neighbor's house just showed up on comps for another listing appointment I'm headed to this evening.  The neighbor did not get full list price, for their superior home.  They inflated enough to put their believing neighbors, trying to sell, into a pickle.   

Listen to the professional sitting in front of you.  We know the comps. We know our local markets.  Trust us, if you really want to sell.

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Rainmaker
592,740
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

I have shown people the tax records that show the ACTUAL sales price and they still choose to believe the lying neighbor, because it reinforces what they are wanting to pay or sell for.

Jun 26, 2014 03:45 AM #27
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Ellie:  Don't forget it, it will also pay for the expensive jet fuel.  

Michael:  Verify.  Always verify.  And in reality, the only verification that matters is what shows up when it says SOLD.

Jill:  Because ultimately, that seller had to deal with an appraisal based on the comps we are going over the prospective client with.

Jun 26, 2014 04:12 AM #28
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Jared:  Don't you love people who were, or knew agents, who practiced for 6 months, 20 years ago?  Ugh.

Jill:  Everybody wants to be the one that got the deal (buyer) or got the most money in the neighborhood (seller.)

Richie:  Hope the best, expect the worst is how I run numbers for clients.  Worst case scenario.  If you can deal with that, you can deal with anything.

Jun 26, 2014 04:14 AM #29
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Suzanne:  Thanks. Sellers really should trust their local agents.

Andrew:  Imagine that?  A seller lying?  A buyer lying?  Strutting around like they did something amazing.  Numbers don't lie.

Jeanne:  A zero here, turning a negative number into a positive one.  Ultimately, the MLS is the ultimate lie detector.

Jun 26, 2014 04:17 AM #30
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Heidi:  There's a sister post to this one that I'm going to write about this one about how neighbors view reality.

Tammy:  We are a large metropolitan area with many suburbs around it.  Our most local paper doesn't do that.  Besides, we live right outside of DC where lying is a why a life.  

Michelle:  If they are in the process of kicking themselves, I'd be surprised.  Dollars to donuts they are blaming the agent they did hire for their lack of success, not seeing that their unrealistic expectations had no basis in the marketplace.

 

Jun 26, 2014 04:20 AM #31
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Bruce:  I didn't walk away from it so much as they chose the competing agent.  I think if they would have chosen me, it would have been because they really thought I was best for the job.  The fact that they went on the highest dollar figure and someone unfamiliar with the selling features of the neighborhood, well, that's their decision.  

Vanessa:  And you can feel it coming, just like you can feel the air change right before a storm.  The atmosphere changes and you know, here comes a line of B.S. from a friend, neighbor or co-worker.

 

 

Jun 26, 2014 04:23 AM #32
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Kat:  And the facts never change.

Than:  I know.  I've had that too.  Unbelievable when it happens.

Jun 26, 2014 04:24 AM #33
Rainer
172,981
Marc McMaster
RE/MAX Centre Realty - State College, PA
Putting my clients before myself

I was at an appointment yesterday when the potential seller was comparing his home to the asking prices of other very overpriced listings. It doesn't work that way! 

Jun 26, 2014 05:30 AM #34
Rainmaker
1,085,596
Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

Good for you for telling that seller that his neighbor "stretched the truth."  I have heard these ridiculously inlfated comments so many times!  

Jun 26, 2014 07:05 AM #35
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Marc:  I only like lookign at active listings in a listing appointment to show where to price to be the next one picked.  Those homes aren't chosen yet.

Margaret:  It's definitely not surprising to a real estate agent to hear these tall tales.

Jun 26, 2014 01:02 PM #36
Rainmaker
1,495,077
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

It is good if they have a landscaping, pool and something very special. We like truly special houses. Buyers like special properties too, but .....we have different tastes. Great pool might be 'unwanted' feature for some buyers, etc.

Jun 26, 2014 03:15 PM #37
Rainmaker
3,126,451
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

You can't be in this business for any length of time and not hear this... and so often it turns out that the full asking price sale was anything, but! I've also found that people confuse asking price with sale price. As I always tell them, there's no price police in Charlotte. You can ask anything you want; but will you sell?

Jun 26, 2014 09:39 PM #38
Rainmaker
1,320,431
Nick T Pappas
Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Hun... - Huntsville, AL
Madison & Huntsville Alabama Real Estate Resource

Chris Ann, everyone thinks their home is better worth more than other homes on the market.  I'm really lost for words when I show a potential seller or buyer the latest market stats and they act as though the stats don't apply to them.  You don't need an unrealistic seller or buyer...time & energy sucks!

Jun 27, 2014 12:12 AM #39
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Inna:  Beauty is in the eye of the beholder.

Nina:  I use the phrase, "List prices are suggestions."

Nick:  Then we get accused of wanting to flip a house fast.  It's silly.  You want to ask, "So how long would you like to be on the market.  Months?  Years?"

Jun 27, 2014 03:56 AM #40
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1~Judi Barrett
Integrity Real Estate Services 118 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

Chris Ann,

Rumors are rumors until they're verified.. clients need to realize that an agent wants a home to sell for the most that it can, when they list it.. when the comps are there, there's no point in wasting time and work. 

Jun 27, 2014 10:51 AM #41
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Judi:  That's exactly right.  The only buyer that is going to work for is a cash buyer whose got more money than sense. 

Jun 27, 2014 12:16 PM #42
Rainmaker
1,027,000
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

So annoying but ever so true.  I have heard it time and time again, everyone wants those around him or her to think they are the best or the smartest.  Good advice - listen to the expert who knows!!

Jun 28, 2014 09:36 PM #43
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Susan:  It certainly does pay to hear the truth over hearsay.

Jun 29, 2014 03:54 AM #44
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Michelle Carr Crowe,Altas Just Call...408-252-8900!
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Yes, sometimes people hear what they want to hear. "We got what we wanted" isn't the same as "full list price".

Jun 29, 2014 03:56 PM #45
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Michelle:  Good point.  Vague statements can lead to confusion.

Jun 30, 2014 02:48 AM #46
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