About 5 months ago I listed a house for a lady. I did the market analysis and showed her the numbers. She chose to list it with me at about 10% above the current value. I normally will not take a listing overpriced but did get her to agree to automatic price reductions. We started out at $94,500 and are now down to $89,900.
We have had several lookers but no offers. One thing that the owner and I failed to take into account is the foreclosures that keep popping up. Every time we think we have a serious prospect, they end up buying a "new" foreclosure in the neighborhood.
I sent my seller an e-mail yesterday apologizing for not predicting all these foreclosures that keep popping up and for obviously listing her property too high. I also asked for a further price reduction and she just wants to hold tight for now.
If I could offer some advice for potential house sellers and their agents, do a market analysis for the neighborhood and if the owner really wants to sell the property, list the house at what houses are currently selling for in the neighborhood. That's what these banks are doing; pricing their properties to sell! Forget what houses are currently listed for, price at what they are selling for.
I had a discussion with my number one agent in the office this morning. We both decided that we would not take any more over priced listings!
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