I Knew I Could Get Asking Price But at What Real Cost
On a recent listing appointment, I knew going in that the comps that I had prepared for the seller were not going to be viewed favorably. I won't go into great detail, but without question, this was going to be a listing that was going to primarily attract investors and the highest sold comp for the area was for $64,500 and the remaining 15- 20 sold properties sold for significantly less than that.
That One Listing Did Get Asking Price
Although the house that reaped the list price sold, it took all of 366 days to do so. When I pulled the comps, the first thought that came to my mind was the seller saying to themselves or their agent "I knew it could sell for asking price."
And while that's true, I can also imagine the agony and frustration of a home being on the market that long. I also imagined:
- The number of perceived "low-ball" offers.
- That the listing agent went in with the reality of the market that didn't match the seller's preferred list price.
- That all of the seller's future plans were on hold as they patiently or impatiently waited for that needle in the haystack buyer to appear.
- The cost and inconvenience of maintaining a property (including taxes, insurance, etc) of a house in a community that by all appearance was dying.
Of course, the first thing that came to mind was that no house that was appropriately priced would stay on the market for that long.
I urge sellers to look at the data presented to them with regard to recent sales in the area when considering putting your home on the market. If the price you want is contrary to the data provided, be prepared for a longer than usual listing period. If time is not a factor for you, then that works out fine, but if you're on a significantly shorter timeline, you may want to give more credence to the facts presented to you at the time of the listing appointment.
I think I can speak for all listing agents when I say we really want to help you sell your home. However one of our greatest assets is our power to negotiate based on the facts we have before us. Overpricing a home gives us little to nothing to work with and it's an uphill battle and we know it, once we take the listing (if we decide to take it).
In the end, it's your home and you have the final say as to your asking price and how long you'll hold out for it. Just keep that other homes around you may be moving off of the market at sold prices that reflect realistic market values, it's a good indication that their asking price is in line with true market value of the house and the community.