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No Worries! Someone Will Price Property Your Way

By
Real Estate Broker/Owner with MoonDancer Realty, Dillsboro,NC NC# 218097

When sellers are preparing to list their property they aren't thinking of the myriad chores ahead of them, they are thinking about the money that will shortly be showeringConfucious Say Market Value Isn't Up to the Seller over them.  

If the initial listing conversation starts out with "I'm not going to GIVE my property away" or "I don't HAVE to sell" or perhaps the scariest line of all "I HAVE to get $XXX,000 out of this property to pay off mortgage, car loan, credit cards, medical bills, AND have a down payment for the next house", my work is cut out for me if I choose to accept this listing.

That alone is a difficult idea for sellers to swallow, the really intentional agents won't accept ALL listings.

Hopefully I have perfected the inward sigh and private internal meditative moment as I prepare for what will be the first in a long series of conversations.  Actually, the first of many IF all other aspects of the listing are appealing to me.  There is no point to discuss marketing strategy, amount of showing notice, no shoes on new carpets, electronic locboxes, etc. if the concept of market value is vehemently opposed by the seller.

Here's the lowdown, any property is only worth what a buyer is willing to pay for it. Following that, any property is only worth what a lender is willing to loan on it. Finally, market value is determined by examining the sales amount of recently sold similar properties and no, your property is probably not that unique.

Fortunately, most sellers are receptive, disappointed yes but also receptive to understanding the science behind the idea of market value.  After all, sellers are the initiators of the process.  I'm sure that most real estate agents reading this will agree that the sellers resistant to market value or take offense at any disagreement of whatever pre-conceived price they've decided was the value will be the same sellers oblivious to the stained and reeking carpet, the overwhelming cigarette stench, the cobwebs interwoven with the 60s era gothic swag lamp chain and the unkempt lawn with the broken sidewalk.

Obstinate sellers, do not despair.  As sure as I am that the sun will rise daily, I am equally as sure that there will be an agent in town willing to price the house however you deem appropriate.  Just think it through thoroughly, is that strategy really in your best interest? They are just as likely to not be the thorn in your side urging you to replace or clean your carpet, clean the air in your house, sweep the cobwebs, cut the grass and repair the sidewalk.  

None of us want this to be harder on you than necessary but if you follow this strategy you've done exactly that.  Your first call was the right one, enlisting the professional assistance of a real estate agent.  Do not be dismayed if the professional disagrees with your pricing assessment of your own property.  One of our hardest jobs is the price counseling portion of our initial conversation but it is for YOUR own good (as well as the agent's).  The agent is wasting their own time as well as yours if the property isn't priced competively. Take the professional's advice, especially if you hear it from more than one agent.

Sure, someone will price your property your way but be forewarned that your goal of selling your property is not the same as someone simply wanting to inventory listings. 

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Maria Morton
Platinum Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

Well put, Mona. Just yesterday I was contacted by a seller who listed with another agent because they wanted more for the property than what I told them they could get. 6 months later the property was not sold and they are now wondering if I can help them. 

Aug 08, 2015 03:03 AM
Paul Roesch 618-233-1000
Palatium Auction and Appraisal Service, Real Estate Auctions, Estate, Moving, Downsizing Auctions 618-233-1000 USPAP ... - Webster Groves, MO
Real Estate Auctioneer CAI St Louis MO Auctions

Mona, your post is so timely.. this just happened to me this week. I declined the listing.

 

Aug 08, 2015 09:02 AM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Absolutely we don't have to take a listing for the price the seller wants, but there will be someone most likely who will. I don't want to be known for taking over-priced listings -- and also that is no help to a home seller.

Aug 08, 2015 09:35 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Just today I had an agent say to me that her client said about a listing "would you live here?". At the listed price they expected more.  Nope, it's NOT my MY listing.

Aug 08, 2015 12:00 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Mona - this post is so timely.. I am going to have this type of conversation with a seller tomorrow.

Aug 08, 2015 12:48 PM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Mona Gersky - just coming back from listing appointment - and heard exactly what you have mentioned in this post.

Why oh why on earth....(sorry, no rants...let me stop here!)

Aug 08, 2015 01:59 PM
William Johnson
Retired - La Jolla, CA
Retired

Hi Mona Gersky , Great post and glad this was featured. This topic is well covered. Thankfully most of my business is past client and referrals from clients, so I have so much less of the pricing issue. 

Aug 08, 2015 03:02 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I hope home sellers will read this post and price their homes based on agent's recommnedation.

Aug 08, 2015 09:17 PM
Thomas F. Scanlon
Borgida & Company P. C., CPA's - Manchester, CT
CPA, CFP

Mona Gersky - Well done. Managing client expectations is key.

Cheers,

Tom

Aug 08, 2015 11:12 PM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

It is not just the new agents that will take a listing that is over priced either...

Aug 08, 2015 11:22 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Mona Gersky Well said! Excellent post! Taking an over priced listing will only hurt the client in the long run.

Aug 08, 2015 11:46 PM
Jenna Dixon
Momentum Real Estate Group LLC - Marietta, GA
55 & Over | New Constructions | Horse Farms

Ah, the overpriced listing!  Surely to be a nightmare from day one.  It really pays for an agent to be selective in what listings they take.  Sellers rarely conceive of the idea that an agent would actually say, NO THANK YOU.

Aug 08, 2015 11:54 PM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I just ran this gauntlet of well-meaning I know what it is priced people. Everyone looked at me with eyes that said...YOU better do your part. My response? The market will have the final say on pricing thank you. BTW, my price was spot on.

Aug 09, 2015 12:12 AM
Janis Borgueta
Newburgh, NY
Retired RE Salesperson

Well said! Fair market value is all a property will sell for. I tell clients that I don't list properties, I sell them.

Aug 09, 2015 01:36 AM
John Pusa
Glendale, CA

Mona  - Any agent lists property at seller's requested price, doing disservice to the seller.

Aug 09, 2015 03:33 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

There will always be someone to list any house at any price to capture leads.... Win for agent, loser for seller!

Aug 09, 2015 03:34 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Mona Gersky 

Great advice here on a tough subject, and a clever title, too. There will always be sellers who think they know more about the value of their home, or want more than it's worth for a host of reasons. There will always be an agent willing to price a home, but fewer who will price it correctly. The person who probably knows best what the value of your home is, is the buyer who buys it 

Maybe it should be called a selling presentation, not a listing presentation. Anyone can list

Jeff

Aug 09, 2015 10:00 AM
Janis Borgueta
Newburgh, NY
Retired RE Salesperson

That Jeff Dowler CRS sounds like the title of a blog post for sure!

Aug 09, 2015 11:14 AM
Denise Hamlin, Broker/Owner
Cardinal Realty ~ 319-400-0268 - Iowa City, IA
Helping Happy Clients Make Smart Choices

Great title Mona Gersky  You make some excellent points and made me smile too. Yes, there will always be someone who will list a house higher than it should be. The strategy is flawed, but it's amazing how many sellers are willing to take that risk. 

Aug 10, 2015 02:14 AM
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

For NC Real Estate, call (828) 631-0077 for Mona Gersky.

Aug 10, 2015 04:26 AM