by Patricia Feager, 9/4/2017
When it comes to other people's money, people take it personally. But that's not the problem, the challenge is having discussions with sellers about rising property costs, economic decline, and the reality check on the appraised value by an Appraiser. A seller who has an unrealistic expectation of what their property is worth needs to understand Appraisers are bound by Federal Government Guidelines. What the sellers don't know can hurt them later, e.g., when agreed upon sales price doesn't match appraised value. Buyers can then opt to walk, pay the difference or negotiate with the seller to adjust his price or split the difference. Sellers need to be educated on seller paid closing costs.
The perception is, if I make more, I get more. But is that true? If the owner is paying for Title Policy and other closing costs, including Realtor Fees, who stands to gain more and why and how does that compare to costs if property is priced right and not too high? These are discussions I have with my sellers during the listing presentation.
The person who gambles and believes they don't have to sell, so why settle for the first offer may be making a terrible mistake. For every day the house remains in the seller's name, the seller incurs additional costs, e.g., liability, property taxes, home insurance, and maintenance too. When you factor in monthly costs for home ownership, including utilities, does that extra money (if you get more money) really makes a bigger difference in seller's net? Also, there's no guarantee any other buyer wants your house if first buyer walks and if it stay son the market too long, the perception is "what's wrong with it?"
It's important for me to have these conversations with my sellers before they list and have a strategy in place to reduce the price of the house after further evaluations on market analysis on additional neighborhood/activity trends on days on the market and sold properties. The purpose is to present realistic information and the role of how supply and demand has a direct impact on pricing.
Patricia's Tip for the Day
©Stay stuck in the mud or swim with the current to get to your destination faster.