If you want to overprice your property, I am not the REALTOR® for you

By
Real Estate Agent with Thompson Company, REALTORS® MD594797

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.

High-rise condos Silver Spring, MD and beyondOur 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.Andrea Bedard, Thompson Company REALTORS

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.

Posted by

ANDREA BEDARD, M.A. ~ THOMPSON COMPANY, REALTORS ~

 

 

   

                                                                                                              

 

Thompson Company, REALTORS
16910 Oak Hill Rd, Silver Spring, MD 20905
o: (301) 384-9177 c: (240)593-2860

andreabedard.re@gmail.com

Andrea is a REALTOR® based in Silver Spring, MD. She has enjoyed assisting buyers and sellers since 2004 and focuses on residential Real Estate in  Montgomery and Howard County, MD. Andrea is a proud mom and hobby decorator with a vintage soul. She always answers the phone with a smile, enjoys running and treasure hunting and is addicted to coffee.

 

 All photographs are my own and I'd like to keep it that way. All information is deemed reliable but not guaranteed.

 

 

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Tags:
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Rainmaker
2,704,514
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello Andrea Bedard 

What a shame that the seller couldn't accept the market facts and wasted time and money on the sale.

Jan 28, 2016 11:31 AM #1
Rainmaker
867,861
Elyse Berman, PA
Best Connections Realty, Inc. - Boca Raton, FL
Boca Raton FL (561) 716-7824 CRS, ABR, GRI,ePR

Andrea Bedard This scenario is a familiar one.  They often end up selling for the same of less months or even years later.  Good for you, for being honest with them. 

Jan 28, 2016 07:02 PM #2
Rainmaker
1,415,657
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

How frustrating that must have been! Sometimes sellers don't want to listen to our professional advice. 

Jan 28, 2016 08:24 PM #3
Rainmaker
3,543,285
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Andrea. This was hard to read. So many clients get greedy and stupid when they get a wonderful offer right away. Too bad.

Jan 28, 2016 10:45 PM #4
Ambassador
3,937,485
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Andrea

Ugh, what an unpleasant situation to be in. Sounds like it was a dream deal, and then to have a foolish, and greedy, seller burst the bubble. Obviously the property WAS priced well to get 2 full priced offers. And look what happened!

I had a similar experience with a quick offer, but thankfully the seller wised up. I talk about the possiblity of quick offers, especially in our market, to try to offset this objection. Wasn't your goal to sell the house?

Enjoy your weekend - you're 3 hours closer than I am!

Jeff

Jan 29, 2016 12:12 AM #5
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2,188,706
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

You said, Andrea. I'm not about taking listings that are too high for the market. This is really a waste of everyone's time. Great post. 

I like using Realbird, too. 

Jan 29, 2016 07:29 AM #6
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1,913,466
Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Andrea Bedard  Penny wise and a pound foolish .... cost her expenses to keep it vacant for three months  .It certainly ate up  the money ..  I always let my clients know their first deal is the best deal and to think very cautiously about rejecting it

Jan 29, 2016 12:57 PM #7
Rainmaker
677,092
Bob Force (REALTOR®)
Weichert - McKenna & Vane - Mount Airy, MD
The FORCE in Maryland Real Estate

Andrea Bedard , you forgot the added costs of three months of taxes, insurance, and any condo fee.

Jan 30, 2016 05:12 AM #8
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Rainmaker
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Andrea Bedard

M.A.; REALTOR® Silver Spring, MD and beyond
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