Alright, I know it is impossible to get rid of all the overpriced listings out there. I suppose you need some overpriced listings to make the right priced properties shine. However, I still so many ridiculously priced homes out there for sale. I only work the Sarasota, Florida markets but I imagine much of the rest of the country is similar.
Unrealistic sellers/overpriced listings not only waste the buyers, listing agents, and sellers time but it also prolongs the market recovery. A lot of buyers are apprehensive to pull the trigger right now for many reasons - economy, continued price declines, more foreclosures etc. The fact that there are a gazillion properties out there for sale does not help. There is little sense of urgency for the buyer to act because they have so many to choose from . What would happen if they didn't have so many to choose from? What would happen if 30% of the inventory in your market disappeared? It might help the real estate recovery. Buyers might get that sense of urgency again after the newspaper reported, "Inventories of Homes For Sale Plummets!"
I'll be the first to admit that I have some overpriced listings. However, the sellers I have are motivated to sell but just have not priced their property aggressively YET. Sometimes, it takes time. It is difficult for many sellers to do that from day one.
I figure Realtors take overpriced listing because:
- They are either no good at valuing property
- Want to pick up buyers from their signs
- Trying to dominate their farm area
- Have no buyers or sellers and need something to do
- Because they feel the seller will get real one day
- Have a very good client that pushed them into taking the listing
- They took the listing at a ball park price 6 months ago and now it is really overpriced.
What ever the case may be we can do our best to help this real estate market by lowering supplies. One way to lower supplies is to quit working with unrealistic sellers and taking listings that you know won't sell. I know it isn't always obvious if something will or will not sell but we should do our best to get rid of those "You Gotta Be Kidding Me!" priced listings.
I would be curious to hear if you are still seeing plenty of overpriced listings in your market. Chime in if you would.