I first want to explain what a come to Jesus meeting means. A "come to Jesus moment" refers to a dawning, epiphany or agreement following a disagreement. It means explaining sometimes the obvious. As a Southeastern Michigan realtor we deal with many sellers. So are very stead fast in what they want in a property. Where they come up with the numbers (sales price), sometimes I just do not know. As a realtor you can give your opinion but more than likely the home owner is going with the agent that thinks like they do. What I have to say is that I have had sellers who had ideas of a high selling price. So high that I didn't think they would get it, but they did. It surprised me even when we sold it. So yes, sometimes over priced homes do sell to that buyer that really wants it. Todays south eastern Michigan real estate tips is about selling your home and pricing it right. So here is the question "are you listing to the feedback, the buyers, and the offers " that have come through your home?
Sometimes we as realtors have to do a come to Jesus meeting. It is about explaining nicely the feedback, and where the seller is at. How the home is over priced. It is a tricky meeting as you do not want to upset the sellers yet you have to give them the facts of why their home is not selling. Somehow you have to get them to reduce the price or do the repairs or updates they did not want to do.
1.) The first one is about a Oakland County lakefront home seller. They had bought the house for $650,000 back in 05 or 06. Back in the height of the real estate market. Of course we went through the mortgage fiasco here in Detroit were all our home prices went down. So they called me over and told me a real estate friend in California told them that they should list the house at $820,000. I myself thought it was worth about $650,000. I took the listing because I thought I could talk sense into the seller over time. The home wasn't much but it was a beautiful property on a great lake. So we listed the home at $820,000 as the California friend realtor said.
Over the next 6 months we recieved 3 offers all in the $600,000 to $650,000 range. We had other people interested in the home but only way below the $820,000. They were all talking in the low $600,000. So if you are the seller and you are listening to buyers what do you think the house is worth?
2.) The next one was a search that I did the other day. I pulled all the waterfront homes for sale in Commerce Michigan. Now we have a very hot seller's market in Metro Detroit where homes are selling quickly and for top dollar. It's not unusual to see 3 to 8 offers on nice homes. Homes that have been updated or are move in ready are going at list price or higher. Even the dated homes that need work that are priced right are selling quickly. So there were 22 Commerce Lake homes for sale when I looked. 16 of them had been on the market for over 45 days or more. Some had been on the market for over 6 months. So if you are the seller of one of those 16 homes that have been on the market for 45 days and you are listening. What is wrong with that scenario?
3.) #3 Scenario is about listing a home in Novi. The home was freshly painted, had original cabinets, had worn carpeting, and old furnace, but had granite counter tops in the kitchen. The bathrooms were dated and not expensively done originally. The sold comps for the house were $325,000 to $330,000 for nice homes in the same neighborhood. The seller was an engineer and had gone through a detailed analysis of his home. He had used comps from a year ago and did all sorts of additions for updates he had done. He did no subtractions for any of his negatives. But he was of the opinion that so many sellers have.....that why replace the carpet because the new buyer would want to change it anyway and pick their own colors.
His goal was to get $335,000 so we listed it at $339,000. In one week we had 34 different buyers see the home. Some of them were through an open house. The majority of the feedback was the house was dated, or needed too much work for the price. During the open house we had two buyers wanting to offer $300,000 for the house. They never followed through. Before we had the open house on Sunday we had received a low offer of $320,000 which we were trying to negotiate higher. On Tuesday we recieved an offer of $330,000 with the seller paying for a home warranty. So the true sales price would be $329,575. So if you were the seller and were listening to the buyers what would you do?
So let's talk about #1 if you get 3 offers all in the same price range from 3 different unrelated buyers with agents from different real estate companies do you think maybe the true market price might be in that price range?
#2 If your home is sitting on the market for over 45 days in a hot sellers and hasn't sold, this should be telling you that either you have to lower the price or improve the condition of the home.
#3 Scenario. You have a large number of buyers through the home. The feedback is that is dated and over priced. You received one low offer. Now you finally recieved a good offer over recent comparables. Should you counter and want more or should you take it and run? My advice would be to take it and run because your next choice if you hadn't recieved an offer would be to lower the price. You got a good price so run with it!
Having a come to Jesus meeting isn't bad. It is a tricky meeting though. Explaining the market, the buyers opinions without getting our seller's mad. We are at the mercy of the buyer's opinions and wants. If buyers are seeing the house and not buying, it is not the marketing. It is either the price or the condition of the house. We have to do one or the other in order to get the home sold. It is a hard pill to swallow for any home seller, but if it is a seller's market and your home is not selling something has to give.
Thanks for reading my Michigan home seller's tips
Russ Ravary your metro Detroit realtor
"helping make your next move easier"
I hope you have a wonderful and safe day!