Just Because It Is a Seller's Market...

By
Real Estate Agent with Long and Foster REALTORS®, Gainesville, VA VA License # 0225089470

Just Because It Is a Seller's Market...

The level of frustration for buyers in the current Bristow/Gainesville marketplace is through the roof.  So many buyers for every listing that comes up on the market means that there are often five or more buyers knocking each other out to win the home.  Closing cost assistance is near impossible to get.  Over list price offers are common.  And now buyers are starting to waive inspections and make low appraisal guarantees that they will kick in "X" dollars above a low appraisal.  Sellers have the advantage big time.

Just because it's a seller's market doesn't mean buyers will go nuts for a home in desperate need of carpet and paint and other updates and poorly marketed, listed for top of market.

A home popped up in my buyer's search area, which also happens to be my own neighborhood, for a home style she would love to get.  It was priced as high as the same model that was updated to the nines, staged and professionally photographed.  This latest listing screamed, "I'm a hunk of junk."  Clicking through the listing photos it was one poorly lit cell phone shot after another of a home with holes in the carpet, scratches on the hardwood, and a DIY kitchen update that didn't look very well done.  There was clutter all over the home.   It was such a sad display.  Thankfully, I'm working with a buyer that can see beyond the condition and wanted to get in IF they were realistic on price.  

Within minutes of the inquiry about the listing from my buyer, I was on the phone with the listing agent.  I asked him if the seller's were willing to come off the list price since there were obvious areas in need of repair.  In a way only an completely confident and arrogant agent could answer, he scoffed and replied, "Why should they come off their price?  There's nothing else on the market?"

My attempt at reasoning with this agent was met with the absolute confidence that they would get a full price offer by the time the day was over.  Well, that was days ago and the house is still sitting there without showings.  And if my gut for my own neighborhood is correct, it will be sitting there for six months or more if they don't get real on price. 

No matter the market conditions, if a home is truly not worth what you are asking, buyers will wait.  Professional listing agents know that you only get top of market when you SHOW top of market.  Listing preparation and professional photography are a must to get to the top of those every climbing prices.  You can't throw any crappy house on the market and expect to take down a record high price.  Buyers aren't that frustrated. 

 

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Rainmaker
4,927,947
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Chris Ann,

It just shows the nature of human beings in general.  They cannot see the reason behind having a home in pristine condition makes a difference...And everyone is screeching that is a sellers market, merely because they do not read what makes people buy right away.  A

Jul 15, 2020 04:08 PM #1
Rainmaker
3,961,812
Dorie Dillard CRS GRI ABR
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good evening Chris Ann Cleland ,

Isn't it amazing what some agents advise their sellers to win the listing??

Jul 15, 2020 04:50 PM #2
Rainmaker
3,680,816
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Chris Ann - arrogance is not pretty and when combined with a know-it-all attitude does not improve the situation.  Yikes!

Jul 15, 2020 05:24 PM #3
Rainmaker
1,051,195
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

So true, if it's not move in ready in San Diego, CA it will sit. If it's move in ready no matter where, it's multiple clean offers. Sellers' Markets make lazy listing agents, stay on your game no matter the market. As a 70% listing agent...I still spend 30% of my week with buyers; I see and understand both sides.

Jul 15, 2020 05:53 PM #4
Rainmaker
578,626
marti garaughty
garaughty.com - Montreal, QC
a highly caffeinated creative type...

 

 

Jul 15, 2020 08:25 PM #5
Rainmaker
1,614,543
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I so often hear myself thinking "What are they thinkinkg?" Then I realize the answer is "They're not."

Dumb, dumb, dumb.

Jul 15, 2020 09:04 PM #6
Ambassador
4,255,249
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Chris Ann:

Yep, we see the same thing here - the market, and buyers, will send the message loud and clear. Just because the market favors sellers does not mean an overpriced home in poor condition will sell. We see it all the time, and buyers are not generally fooled into going along with this tactic.

Jeff

Jul 15, 2020 10:44 PM #7
Rainmaker
3,641,949
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Chris Ann. Sometimes you have to ask "what part of NO don't you understand. Enjoy your day!

Jul 16, 2020 03:32 AM #8
Rainmaker
582,024
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

You make some good points. I wonder if it was the seller that priced the house--?  They can have unrealistic expectations in a hot market.  It does sound like the agent was pretty arrogant tho!

When I talk price with a seller, I show them comps, give a recommended range based on the facts...and then let the seller set the price.  I want them to have "ownership" of that decision since it's their house. 

Jul 16, 2020 08:22 AM #9
Rainmaker
1,018,909
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Amazing what effect this sellers market is having on everyone.  I have a listing that is accurately priced but we're getting offers WELL over list price.  Having to explain to a seller that the appraiser will take care of that isn't as easy of a conversation either! 

Jul 16, 2020 02:13 PM #10
Rainer
194,791
Anne Corbin
Long and Foster - Lake Anna - Spotsylvania, VA
Serving Lake Anna & Central Virginia

You hit it spot on! I just listed on over the weekend and we have not had one call on it. It is a great house, only 4 years old, but a bit overpriced at the seller's request. Time will tell.

Jul 17, 2020 05:46 AM #11
Rainmaker
2,869,277
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Just because it’s a pizza parlor doesn’t mean they can’t make good sandwiches either lol. You’re totally right.

Sep 12, 2020 09:31 PM #12
Rainmaker
2,869,277
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Anne Corbin certain price points can be that tricky and even more so in those high middle ranges.

Sep 12, 2020 09:33 PM #13
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Chris Ann Cleland

Associate Broker, Bristow, VA
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