The 'Magic Formula' for Finding the JUST RIGHT PRICE...

Totally agree with you...and it's hard to do.  I always try to tell people that I'm telling them what it will take to get their home sold, not what I think it's worth.  Those are two different things.  I really try to take the emotions out of it which isn't easy.   I also try to put them in the shoes of the buyers and show them the competing homes that are currently active and compare. 

Not an easy thing to do, to walk away, especially when you enjoy helping people because you are not only walking away for them but for yourself as well.

Great post!

Good for you! I too refuse bad listings. Probably why I'm sitting on so few at the moment but it is a total waste of time and my MONEY.

'Repeat offenders' are those properties that have been listed by at least one other agent previously, without success.

My favorite category because by the time I get a chance to work for these people they are more willing to be "realistic"!

This was great Elizabeth and you even provided a formula!  Your prospective client may not have been happy at the time but down the road he will certainly have a great respect for a valuable lesson.  I think you are the bomb!

Thanks for the reminder about subtracting the weird or plain-jane factor. I sometimes forget to factor these things into my CMA.

This advice is sooo important. A friend of mine is learning this the hard way!  Her sister is a Realtor and I am sure she didn't listen to her sister's advice.  Now, they keep lowering the price -- it has been over 6 months and things are very slow in the winter!  It is important to have the right price from the very beginning.

ELIZABETH!  YOU are so on!  This post was very well written, and so apropos for TODAY - NOBODY could have said it better than you!  A STAR very well earned and deserved!  Did you bake those yummy looking cookies????

You "TRUTH-MONGER" YOU!  Gby!

Thanks for your great formula!

I just love how you put things Elizabeth, It just makes sense. I will send you snow if you send cookies. :)

Truely a great post and even a great way of putting it out there.

My weakness :)

Best to you and yours always.

I hope everyone reads this... Including Realtors.  We still see quite a few Realtors in our area over pricing homes here... Just to get the listing.  They sit, expire and give other sellers false hope - not to mention scare off buyers.  While we make a positive influence in real estate, it's quite frustrating to have to answer to their selfish promotion.  On top of that, the market isn't driven by buyers here alone, it's really being taken over by appraisers.  No point in pricing the home wrong and spending all that money if it's not going to appraise out anyway.

Hi Sis!  First of all, congratulations on that little gold star!  Well written and REALLY needs to be out there, front and center!  Sellers can be too stubborn for their own good and if you don't feel that it's a good fit, then don't slip into those ill-fitting shoes!  You are just costing you and your Sellers money, time and frustration! 

That's what needs to be done so we are not throwing away marketing money.  I have a feeling he may call you again.  Let us know if he does.

As realtors, we now have far more of a weight on our shoulders than we had a few years ago, given the economic strife we are dealing with.  It is now our obligation to explain how important it is to list correctly in this market, given the consequences of bankruptcy or foreclosure.  This was always a "background" issue but now it has come to the forefront.

I can't repeat myself enough, the price, the price, the price. That's all that matters. You are so right. too many sellers want a price they "need" out of the home and not what it's worth.

LOL - Elizabeth - I just looked at our stats for 2008 and we turned down as many listings as we took - 1st time ever for us - People cannot expect to pay for their next dream home by inflating the price of their current one.

Or

if you take one or more home equity loans out - its just like a cash advance - you will not make up this money in a year or think you can just raise the price to cover what equity you've depleted.

We would prefer to say no but we will come back and be the 2nd or 3rd agent after your home doesn't sell due to price or if you'd like to price it right to sell now you will save 1 year of mortgage payments, taxes and utilites :)

great post

GBU sis

Sincerely,

Grace

Wow - this formula is too cool - I have to apply it to my current inventory to see what I get.

Thank you!!

Hi Elizabeth,

I loved your formula, thanks for sharing.  I'm sitting here with my friends Marty and Steve, showing them how AR works.  You are the best example in AR, and in life! 

xoxoxoxJannA

I understand exactly what you are saying. It really blows my mind that some people still don't get it.... Thanks for sharing!

Elizabeth, I met with the owner of a gorgeous townhome and had to tell her the bad news,;she overpaid for her unit and I couldn't list it for the price she was asking. I would love to have the listing, but the goal is to SELL the property not let it languish on the market because it's overpriced. It's better to walk away.

Elizabeth, not only a good story, but I like the way you turned it around at the end and said, "Want to know the right price" to sell your home.  If you want your home to be sold, it is truly about setting the right price for the market.  Good for you for not taking a listing that wouldn't sell.  I have a feeling this seller will come back to you in time.