Why Too Much Love Can Cost Thousands
It is that time when Mom and Dad have to sell their home you grew up in because it is too much for them to take care of. You help them find a local real estate agent you trust and you get the home on the market......overpriced at $329,000 which is against your real estate agent's advice because $299,000 was giving the house away to you. The comparable home sale report given to you doesn't lie but you are the expert right?
Three offers the first week. Two at $300,000 and one at $305,000. You convinced your parents that if they accept these offers, they are giving the house away. But, you are the expert right?
Flash forward to two months later and no showings, no offers. You want the price reduced by $10,000 because, again, you don't want your parents to give away their house.
Now it is month four and you finally reduce the price to $299,000. Still no showings and of course, no offers. You are wondering why because, you know the market. You are the expert.
Almost month six into the listing agreement and reduce the price to $269,000 and still nothing. Now it is the listing agent's fault because your parent's home has not sold.
Let me let you in on a little secret: Chasing the market is never good. A home that is overpriced will linger. Too many price reductions make buyers think something is wrong with the house if it didn't sell at that "low price".
Low and behold, it sells at $260,000. Congratulations, your parents lost $25,000 because you are the expert.
We all want to protect our loved ones when it comes to selling their homes. Unless your parents can't speak for themselves, let them do what they need to do for themselves. Don't treat them like they are children. Be a part of what is going on but if you interfere, it could cost your parents a lot of money that they need to live on in their Golden Years.
This situation happened to an agent that I know and respect and was very upset that their clients lost so much money. Sometimes, we cannot know how involved and difficlut others will be>