Once upon a time ...
I received a personal referral for a high-rise condominium in the Silver Spring, MD area. We had a pleasant first meeting and worked together to get the condo market ready within a few short weeks. Much effort went into the preparation - we toned down the personal and staged with existing furniture and accessories - as well as my marketing.
Our MLS allows us to pre-market a "Coming Soon" listing for up to 21 days, and that is just what I did, combined with professional photographs, blog posts, social media, RealBird ..
Our efforts paid off quickly, 3 offers came in within days, one of it "golden"... A full price cash offer with no contingencies and a closing within 2 weeks. A 2nd offer was also very competitive and included an escalation clause.
Now, I don't know about you, not one but two great offers make my REALTOR® heart jump for joy. I was beyond thrilled for my client and couldn't wait to share the great news.
My client, however, did not share my excitement. She was very upset and convinced that I "must have undervalued the condo" or why else would we receive 3 offers in such a short amount of time?
Pricing a property can sometimes be tricky business, in this case, however, the comps were pretty straight forward .. we had poured over the same many times.
There had been a handful of sales in her building in the previous 6 months, all with the same number of bedrooms and bathrooms and similar square footage. Some appeared more updated than others but all fell within the same price-range.
The highest price was 185K at that time, a condo that had been beautifully upgraded with hardwood floors, a new kitchen and bath. My client's condo also had an upgraded kitchen but it did not have hardwood floors and her bathroom was also in need of a little TLC. She did have one feature though that the others were lacking and I was confident that it could make up for (some of) its shortcomings.
My client decided to list at the very top of the range. Offer #2 that included the escalation clause would have resulted in the highest sale in the building in the last 12 months - provided it appraised of course.
The highest sale. But my client maintained that I had undervalued the property. She instructed me to reject all offers and up the price by 10K.
I consulted with my broker, made one last attempt to explain comps, appraisals, supply & demand ... and respectfully declined to list the property at a higher price.
You see, if you want a Silver Spring, MD REALTOR® who is honest and will give it her all to market your property, I would be honored to work with you.
But when you want to overprice your property, I am not the REALTOR® for you. By agreeing to list at a price that is above and beyond the market, I would be misleading you in terms of its fair value and making false promises ...
And that is just not something I do.
P.S. The condo sat vacant for 3 months. It was relisted with a different brokerage at 195K and sold for 185K... the same amount our golden buyer had offered and 2K less than our offer with the escalation clause.