But Those Neighbors HAD to Sell...and FAST!

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

But Those Neighbors HAD to Sell...and FAST!

Last week we talked about sellers believing neighbors under contract who claim they are going to sell at full list price.  Those are the high, not even sold comps, that sellers want to believe.  If that were the only belief propping up an unrealistic number for a list price, that would be fine.  It is usually not. 

Going over comps in the neighborhood, it isn't unusual to hear, "But those neighbors had to sell fast."  When I hear that in a seller's market, I have to inform a seller that is no such thing as under pricing when buyer demand is outpacing the homes available to buy.  If you price too low, the market will bid you up. 

And in a buyer's market, where seller's linger on the market for months, following the market down as it cools, eventually getting ahead of the drop and finding market value, you want to ask, "So how long are you prepared to be on the market?  How many months do you want to contend with making the bed and making sure your house is neat as a pin?"

Isn't the point of listing your home to SELL it?

Every seller wants the most for the home they are selling.  Even banks that have repossessed homes in foreclosure.  They don't under price.  And Short Sale banks aren't accepting less than market value.  In fact, those entities who have the most incentive to cut and run, are pricing higher than regular sellers in a seller's market.  That should tell an equity seller something.  

The comps are the comps.  Your neighbor didn't deflate values because they had to sell.  They priced where their home was likely to sell and it did.  So do you want to list, or do you want to SELL?  

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pricing your home to sell
understanding the comps before setting a list price

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Ambassador
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Chris Ann, a house is worth what a house is worth!  And the market is really nuanced.

Jun 30, 2014 03:48 PM #1
Rainmaker
740,012
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

I'm a believer!

There is no such thing as under pricing especially in a seller's market, the market will bid it up.

Working on spreading this message!

Jun 30, 2014 07:08 PM #2
Rainmaker
3,633,568
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Chris Ann. You have done a fine job here in explaining the factors that really impact a homes worth. Suggested.

Jun 30, 2014 09:43 PM #3
Rainer
215,519
Marshall Enterprises
Marshall Enterprises - Saint Michael, MN
Antiques, Lawn Care, and Trashouts

If you price it too low, the market will bid you up is the key phrase here, Chris Ann.  Very well put!

Jun 30, 2014 10:19 PM #4
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Pat:  It's hard to get Sellers on board with numbers that they don't like.  The math doesn't change.  

Pete:  Sellers have this belief that they need negotiating room.  They really don't if they are priced right. 

 

 

Jul 01, 2014 01:31 AM #5
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Sheila:  Thanks.  I love it when you suggest my posts!

Ron:  That's right.  

Jul 01, 2014 01:32 AM #6
Rainmaker
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Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Reminds me of when I was in Property Management.....the name of the game was move people in, not just take applications.  Same diff.....list or sell?  What's your preference?

Jul 01, 2014 02:53 AM #7
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Roger:  Exactly.  There's no sense in "testing the market."  It is what it is.

Jul 01, 2014 03:21 AM #8
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Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

I recently listed a house. One agent told me it was over-priced by $25K. We got 30 showings and 6 offers. Another agent told me, you think you under-priced? Go figure. 

Jul 02, 2014 02:15 PM #9
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Tammie:  Over priced?  Her buyers just wanted to lowball.  Out of curiosity, was there a ceiling where the six offers seemed to hit?

Jul 02, 2014 02:26 PM #10
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Chris Ann Cleland

Associate Broker, Bristow, VA
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