Listing Pricing and Representing Your Seller

I am fascinated in todays real estate market.  On one hand we have the lowest inventory of available real estate for sale in our local Pikes Peak MLS since 2000.  On the other hand the average days on market is going up instead of down.  These two things normally do not go together.

In the past two weeks I have shown a house to clients several times.  They like the house but are questioning the price.  Looking at comparables it is overpriced for the area and square footage.  One of the etiquette practices of real estate is providing feedback in a timely manner after showing a house.   It is also, by the way, a great way to create great relationships with other Realtors® who will remember you when they are working their first offer with you.  Just another example of how the little things more often than not that can have a big impact.

Back to feedback.  I wrote specifically about the house and the pricing and what I discovered.  The listing agent emailed me back acknowledging the feedback but coming back to their price is justified and why.  Here is where it gets interesting.  In a market with low inventory if a house is a good listing and priced well it should sell in a very short period of time.  I just saw the third price drop on this property and it is not there yet.  If the price was within a reasonable amount of a sale I would think offers would already be in.  

When we represent our sellers as sellers agents it is our job to represent price.  However I think another critical part of a successful sellers agent is to be very honest and upfront with our sellers in terms of pricing and why a house may not be selling with low inventory.  Sometimes it takes other agents providing consistent feedback of "overpriced, overpriced, overpriced" to get a sellers attention and motivation to do a significant price drop.

As with most things in real estate and other industries as well there could be many other factors involved as to why a house does not sell.  This is just an example and a reminder of working for our sellers and supporting each other as Realtors®.  I am sure many have great stories and examples of what has hurt & helped them in this arena. I look forward to reading your responses to this.