Whenever I go on a listing appointment, I generally find that the seller already has a “number in their head” about what their home should sell for. This number can come from various sources. It is – unfortunately – almost always higher than the current market can command.
In truth, I can’t blame sellers for this…their minds have been levered to continued price increases to such an extent that the current market has left most sellers blind sided.
The first thing I often hear is that “I need to get X out in order to buy my next home which I can now get for Y because its gone down in price. The trouble if the property you want to buy has gone down so much in price, chances are the property that you want to sell has gone down by a similar percentage. Wishful thinking is often the culprit here. Markets are fluid – that was fine when prices were going up – but it also holds true when prices decline.
Misinformation is another issue. Many sellers look at what their neighbor is asking for their home. Asking isn’t getting. Many listings are overpriced in this market – so setting your price on the basis of other listings is not a wise strategy.
“But my neighbor sold their house for X just six months ago!” Six months is a lifetime in a depreciating market. If your market is depreciating – and many markets still are – then prices have decreased over six months.
Zillow zestimates and other information on the internet may or may not be accurate. Zillow has been off as much as 25% in our area. So if the zestimate of your property seems too good to be true, it probably is.
If you need to sell, price your home competitively – this is particularly important in a declining market where inventories are high and buyers are few. Overpricing your property will result in fewer or no showings. The property will sit as the market declines further – resulting in an even lower price down the road. Overpricing a home is just about the worst thing you could do in this competitive market.
To Search for Homes and for further information go to my website/blog with free home search at The Westchester View.
I am always happy to answer your questions and you can speak to me directly on my moble phone: 914-374-5529.
© 2010 Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.
Ruthmarie,
You are so correct about that number in one's head. That is a great way to get sellers to talk about the number in their head.
Cal
In the last week or so...we passed on five listings...or they on us...will not try them to buy them...good for you too !
If the number in their head matches the reality of the market life is good. If the number is stuck in 2002 then we are in for trouble.
I can't tell you how many times I have heard I need xxx amount in order to pay the house and credit cards off. Sellers don't understand how quick a market changes. Good Post.
I like sellers who at least have what I refer to as an "Easy Bake Oven" head. They may have a number in it, but the number you give them pushes theirs out the other side.
It's the sellers who just can't get their number out of their mind that are so frustrating to work with!
I totally agree many sellers don't realize what the market it. It is tough to comprehend even for us professionals.
It's unfortunate that what sellers need to net is not always translate into what their home will sell for.
In the book, Predictably Irrational, a MIT professor did experiments that showed that just by owning something the respondents gave it more value than those who did not. Sounds like the real estate disconnect between buyers and sellers has a reason.
Ruthmarie: Great Post! Just this past week I had potential Seller tell me they just had their home Appraised and the Appraiser told them they shouldn't sell for less than XYZ. Well XYZ is about $30,000 above where my comparables came in at and that being on the high side. Unfortunately, if they can not get this "number out of their head" I feel this Appraiser has just set them up to fail. Not sure if they will decide to list however if they do I fear they will languish on the market in this price range. Most likely a listing I will need to pass on.
In the CMA I leave with the buyer, there is a list of things which tell the seller things that do not determine the value of their home. How much they need, what a family member or neighbor told them it was worth, how much they paid plus what they have put into it are a few of the things on the list.
Great post and very informative, wishful thinking does have it's flaws. I know agents need to be more assertive but those numbers in there head is hard to over come.
Ruthermarie...
This is an excellent summary of the seller v. the market. Thanks for putting this into words that we everyone can understand.
Ruthmarie, yes yes yes yes yes! What a seller feels they "need" is irrelevant. And you make a very good point that the house they can "now afford" is that price because of the declining market -- that THEIR home is in as well!!!!! Great post & insight!
Ruthmarie . .
This was great. Right to the point. You have great comebacks for every objective. I love six months is a lifetime in a depreciating market. Hear! Hear! No truer words were spoken!
Ruthmarie - good post, and sellers do often have an idea of what they think their home is worth. And they often do not understand about days on market.
I always try to explain the relationship as - if you are receiving less for your home chances are you are going to benefit on the buying side by being able to buy lower in most cases. Still hard point to drive home to sellers, though.
Zillow, while very user friendly, has put many numbers and much false hope in the heads of sellers.
Ruthmarie - I really like to find out what that number is in their heads so that I can find out if we are on the same page or not. I always groan inside when they say - well you are the expert. Yes, I am, but they still have that number in their heads and it is helpful to find out what that number is! Saves time for both of us.
It is true that most sellers (traditional sellers) have a number they want to net. But you are right...the market does not always support it and it can be a tough job to get the seller to understand.
It's not the buyers responsibility to pay off the sellers credit card debt...We ran into this last month and passed on the listing.
One has to wonder what reality some people are in. It's really sad when people NEED a certain number or they face deep troubles...but it's frustrating when they get "set" on a certain number simply because they think that's what the house is worth, and of course it's 1,000 times nicer than all the comps out there. LOL
Buyers could care less about what the seller needs. They care about what they need. market value is what the buying public is willing to pay, not what the seller needs to pay off the mortgage, commission, and their credit cards.
Ruthmarie,
I find showing the expireds and solds help combat the inaccurate "zestimates".
Ruthmarie, good, straight to the point. My partner and I let two listings go this past week because the seller wanted to price the home according to what they needed out of it.
So sad but true. I just had a very difficult conversation with a seller yesterday. I had listed his home for sale in 2008 for $250K (less than he paid for it), circumstances changed, he moved out of the home & we put a tenant in place. With the tenant he was losing somewhere in the neighborhood of $600 per month. (He has a 15 year note, so payments are HIGH)
Well, fast forward to yesterday, a review of the new comps puts the price of his home somewhere UNDER $225K.
I've heard that sometime the head is a terrible place to hang out in. As for the number in one's head I always ask if they would spend that much if the house down the street is selling for $X less. Usually that causes a long pause.
Just this week I went on a listing appointment in the area I specialize in; the seller showed me Zillow's zestimate was $1,800,000 for the property. Today this property will sell for around $650,000.
When I went over a very detailed CMA with the seller, he looked at me and asked, where/how does Zillow get their numbers?
I don't know.
Ruthmarie -- Wishful thinking certainly is the culprit! It can sure be a challenge, though, to help the seller understand the present market, TODAY!, not months ago.
Great post. The zestimate is definitely way off a lot of the time.
Good post - & so, so true! Funny how many people have the disconnect of "getting it" that prices are lower than past years as they look to buy, while still believing the higher prices should apply to them as sellers.
It's so funny how my seller who are moving up don't get it that their home is worth less in this market, but all the home they are purchasing.
The title of your post is great! Yes, the number based on their neighbors place that sold. But they don't really know what the neighbor's place sold . . . they only remember the list price on the flyer.
Good points, Ruthmarie. I reblogged you!
Well, its really a Christmas story, but I think it goes something like this:
Twas the 180th night of the listing, when all through the town;
Not a buyer was stirring, not even a bouncer;
The signs were erected on the front lawn with due care,
In hopes that a buyer soon would be there;
The owners were nestled all snug in their beds,
While visions of sugar plum numbers danced in their heads.
From the desk of David Dee,
Ruthmarie, this happens quite often. They would compare to another home that is currently listed and state that if that house can ask for that much, they want more. The only problem is that it is the 'asking' price and not 'sold' price. they need to factor that in.
I wish that Zillow would just remove their Zestimates - in our area, they are always wrong and give sellers a false sense of the market. They believe a big company like Zillow and then we have to work so hard to convince them of the truth.
Yes - so many times it's more about how much money the seller needs rather than what the property is worth in the current market.
You said it all, and very well, too.
The listing prices of other homes in the neighborhood is what prompts the sellers to come up with that number in their head. It ususally is no reflection of the actual selling price of the home and of coarse every seller thinks that their home is superioir to all those others and should list for at least $10,000 more. Couple that with the media hype that sales are picking up - which sellers erroneously equate with prices going up - we've got a touch job getting them to see reality.
I always tell sellers it doesn't matter a hill of beans how much they think they can get for their home or even how much I think they will get. The only thing that matters is how much a buyer is willing to pay, and the only way you have to judge or even guess how much that will be is to look at the stinkin' pending and comparable sales. Period.
Yeah at some point agents and sellers have to come to the conclusion that buyers really don't give a care about what the seller wants to do with the proceeds of the sale of their home...they just want to get a fair deal. I refuse to buy listings! I will still be here working smart when their overpriced listing hasn't sold six months later with the agent who overpriced it to get the listing. Listing agents need to use Floyd Wickman's "Do you want me to lie to you or level with you" speech!
Hi Cal,
We need to get it out in the open. Spending money on a listing that can't possibly sell is the definition of insanity.
Hi Sally & David,
It's just dishonest to lie to people. I took one very overpriced listing last summer because I had done three transactions with the couple. I did tell them what I thought they would get -but all they remember is that they got a lot less than they wanted - and I was obviously to blame for that!
Hi Cindy,
We aren't back to 2002 prices, but if the number in their heads is from 2005-2006 - ohhhhh brother....
Hi Dianne,
Once our market started dropping - it dropped HARD. There was that agonizing 2.5 year stare-down where buyers were just sitting endlessly on the fence and sellers were sticking to their prices like glue.
Hi Richard,
I'm not so sure I get the analogy, but I'll take your word for it. Let's just say that a cake that stays in an oven too long gets burned!
Hi Russ,
It's been a wild ride for everyone. Let's say I went away for six months and came back to work after that "leave." I would have to relearn EVERYTHING! It's changing very, very fast.
Hi Charita,
Unfortunately, we can't control that at all. We can only sell for what the market will bear. Marketing brings more buyers and the highest price the market will bear - but we can't go beyond that.
Hi Joe,
I've got to get that book - sounds interesting.
Hi Therese,
That's a shame! How was the appraiser so far off? Not local probably. Real estate is a very local market....Its what has sold in the immediate area that matters.
Hi Glenn,
That's a good idea. Of course a newly renovated kitchen helps, but other things really don't matter. For example, I spent $13,000 diverting water from my property. But that won't increase the value of my home...
Hi Joyce,
It's very hard to get sellers to give up on that "number." If they need to sell, they may let it go. If they don't need to sell - well - we have to learn to say "no!" and risk losing a sale. I have done it, and it can be very hard to do. But nothin is worse than spending money on something you can't possibly sell.
Hi Richard,
You are very welcome....
Hi Marney,
It boggles the mind that people think this way. I came in when homes were peaking. But I'm sure it worked the other way as well. People saw their home going up - but "thought" that the home they wanted would stay the same price...If you are in the same market, the market moves in lockstep. There is one exception in our market. Single family homes have gone down far more than condos. Condos are heading down now - so over the next few months I expect that to equilibrate more.
Hi Terri,
Unfortunately, its true. Six months in a depreciating market can be FOREVER. Sad- but there it is.
Hi Sharon,
No, I don't think they understand it. Also, they seem to look at "asking prices" as if they were sales prices - two different animals - particularly in this market.
Hi Susan,
Many just want to sell high and buy low! AH....if we could make that happen we'd all be RICH!
Hi Melissa,
Zillow is just all over the place where I am and I guess its the same where you are. Here they either overprice or underprice. Sometimes I think they pick random numbers out a hat. BOTH cause problems. If they underprice - the buyers coming in lowball like crazy. I work in an area that is very dense and a couple of blocks can make a big difference. Zillow also doesn't seem to get that the PO in our area does not necessarily reflect the municipality. For example White Plains 10603 can be the city of White Plains or the town of Greenburgh. Two totally different markets! But Zillow lumps them together raising zestimates artifically in Greenburgh while lowering them in White Plains.
Hi Lise,
I try to get them to tell me as well. Some don't want to. Others are very upfront and tell me they want "X" or they wont' sell. If "X" is way up in the clouds, chances are they are staying put.
Hi Lisa,
I came in after the market went down. But some agents said that while the market was rising - people would just "wait" until the price caught up with what they needed. Perhaps this mindset still prevails???
Hi Ernie,
There are some listings that aren't worth it. Too many people used their house like a piggy bank. Unfortunately, that's like a narcotic. An impossible habit to easily shake off. This is particularly true in situations where wages have been stagnant and costs have soared. I think a lot of people got into this thinking things had to "get better." They hung onto their homes seeing salary stagnation or decreases as a temporary problem. Unfortunately, they were wrong. We were all wrong...wage deflation is a huge problem that was made less severe by easy credit.
Hi Karen,
So true. I do feel very sorry for those whose salaries just crashed through the floor - or for those who lost their jobs. To them, the grim news we come in with is a final nail in their financial coffin...a coffin not of their own making in many cases. Big business has forced the average working middle class person to the brink of poverty - its sad to see..all we can do is try to get them to sell so it is less bad.
Ruthmarie, So very true. Many sellers do have a number in their head of what they must 'get' for their homes. Unfortunately, this number is not always in line with market conditions in the area. Great post and congratulations on the feature.
Good points about the dangers of chasing a declining market. Sellers first need to position their home at a price point where they get showings and offers, and then they're in a much better position to decide if it really makes the best sense to sell.
Asking isn't getting. I like to say you can ask for a sky high price but why would somebody pay more than market value. I also have a chart that shows them clearly where the sales are vs the actives and what the seller is 'thinking' it's worth. Visual works. We also used this chart system when we needed to dump a bunch of listing back in 07 & 08 cause the sellers were still stuck on what they thought they should get. What happened is that they all took them off the market - and still haven't sold. No point in taking overpriced listings. Ok this is bad - way back when I first stared (1987) my first broker taught us to say 'let me refer you to someone who specializes in overpriced listing" hahahaaha. I actully did say that a time or too! Now that's bad realy bad, huh? LOL
In toady's Market, it is important the we communicate with sellers. These are tough situation and as business people we must know when to walk away.
Hi Philip,
This is completely true. The seller doesn't set the market, the buyer does. Whether the seller chooses to sell for less - That's another issue altogether.
Hi Jeana,
It probably took a failed listing to bring them to reality as well. Some people always think "their house" is better.
Hi Ted,
Very wise. Someone will of course, take the listing - and the home will sit forever.
Hi Jenna,
So many people thought the market would "pop" right back. I don't think too many people are waiting for that now!
Hi Frank,
That's a good line...does it help bring them down to earth?
Hi Marie,
Zillow is all over the map around here - but that's REALLY bad. Sometimes I do think they pick random numbers. Why anyone believes these zestimates is beyond me.
Hi Barbara,
So many missed the boat for selling their homes. They are hurting, but there is nothing more we can do except try to get it sold!
Hi David,
I don't consider Zillow my friend - I consider it my competition. The fact that they throw prices around randomly like confetti - which makes are lives harder is really irksome.
Well, most often there are differences of opinion as you know. With that said, you have to tell it the way it is......sometimes sad but true..
Patricia
I tell my sellers that if they need to sell for that price, I would be glad to refer their listing to another agent for 30-90 days to try it. However, I have enough faith that it should be closer to my number that if it doesn't sell, and a price reduction is required, that listing is automatically terminated and I can take over. If by slim chance it does sell at the higher price, at least you would get a referral fee.
Ruthmarie - You are correct about "Asking is not getting". Seller often times don't realize or have the correct information to set their expectation. It is a tough market but we still have buyers and sellers out there.
Hi Ruthmarie -- I absolutely love the title of this post -- I could just see an expression on your face: Say What? after you have heard the seller's response?
Hey Ruthmarie, isn't it funny how our numbers as REALTORs always never close to our clients numbers?? lol
I like to go into a listing appointment and have the sellers put down on a piece of paper what they think their home should sell for...( I make it a small game to play ).....then I do my analysis explanation and see how close we are....(breaks the ice for both the sellers and myself)....I must say that many times they have not been far off from what I have written down... and for those who are far off they eventually see where I am coming from...
Ruth Marie,
I use to ask...but then I stopped asking.
I didn't want to know and it was frustrating knowing I was going to be telling them the number in their head was wrong.
So now I just do my CMA and share the data. It is what it is, as I am only being honest.
Evening Ruthmarie, You pretty well nailed this one. ALthough, Lately I'm seeing more sellers who have come to understand the dynamics of this market.
Ruthmarie,
What a bummer though to deliver the news. I hate telling folks their home is worth a lot less than they hope or need. (Now, I am a practical person, I just don't enjoy telling them:-)
I try to help them appreciate the fact that this will help them move ahead on their next home, ie, what is the goal?
All the best, Michelle
I'm pretty tired of going up against agents looking to buy listings... And that mentality is as much of a problem as anything else...
Hi Nancy,
I don't get that at all (bangs head against wall) if the price of what you want to buy has gone down...why do you think your house is still worth what it was six months ago.
Hi Lisa,
Well that sounds like a lot of fun for you! Just kidding...
Hi Carla,
Yes - Asking price isn't what it sold for! People don't get that!
Hi Erica,
Thanks so much for reblogging - this post turned out to be more popular than I imagined it would be.
Hi Gregory,
Maybe Santa will send them buyer with tons of cash!!!
Hi David,
In the land of wishful thinking - no one does that - the house across the street is obviously worth every penny of the asking which is why your seller feels justified in listing well above that price becasue there home is so much nicer....
Hi Mark,
Zillow has been totally irresponsible about this issue for years - but it brings in the traffic - so they aren't changing it.
Hi Pam,
That's what its about to the seller - but what matters is what abuyer is willing to pay and how much the bank is willing to lend.
Hi Li,
Thank you very much.
Hi Lora,
The increased activity is because prices went down. No one is overpaying for anything right now.
Hi Elizabeth,
That's all we can do - and if recent sales aren't that recent we are sometimes in for an unpleasant surprise.
Hi Jeani,
Unfortunately, buying listings still works for some. As long as they can get buyers etc. there will be those who overprice for the sake of getting the listing.
Hi Sandy,
A lot of hopes and dreams are pinned on this number. People are in trouble and I understand why they cling to that "number." However, this wishful thinking doesn't make it so - and in a depreciating market is very dangerous for those already in trouble.
Hi John,
You have to hit that sweet spot where the buyers come out of the woodwork. Only then do you know what your home can sell for.
Hi Anna,
Who was the poor person you did shuffled those listings to? Has he/she made death threats?
Hi Neima,
We can't spend money on something we can never sell...Sometimes I have to walk. We all do!
Hi Sandy,
A lot of hopes and dreams are pinned on this number. People are in trouble and I understand why they cling to that "number." However, this wishful thinking doesn't make it so - and in a depreciating market is very dangerous for those already in trouble.
Hi John,
You have to hit that sweet spot where the buyers come out of the woodwork. Only then do you know what your home can sell for.
Hi Anna,
Who was the poor person you did shuffled those listings to? Has he/she made death threats?
Hi Neima,
We can't spend money on something we can never sell...Sometimes I have to walk. We all do!
Pricing correctly in the beginning is so important or sellers will be constantly chasing the market.
I am dealing with this everyday (as I am sure we ALL are). It is SOOOOOOO difficult to get these types of sellers who CAN'T get the number OUT of their head to face reality. After about 2 or 3 listing agents, they might FINALLY get it... and when the do, the number they COULD have gotten months before might actually be lower now!!!! UGH!
An interesting phenonema which we have been seeing recently is sellers who tell us "I'm not going to be one of those obstructionist sellers. I get it. I know that I have to price this aggressively if I want to sell it". But then when it comes to the actual pricing decision, they're perspective on realistic is often very different from what is genuinely realistic.
Just because you need to get X for your house does not mean a buyer is willing to pay X. They are more willing to pay X-Y. So if you list your house for X+Y and sit on the market month after month in a declining market, you will soon see the value of your house drop to X-2Y, X-3Y, etc.
A ++ !!! I have seen a lot of blogs on this, but you hit the nail on the head.
I love David Knox's video for sellers on "Pricing your home to sell" It lets a third party confirm what you are saying. I drop it off with my pre-listing paket.
Congrats on the feature!
"Well, we aren't going to give it away!" How many times do I hear that in a month, many times. Thanks for the informative post.
Goodness, I wish that the number was only in their heads, and not in their mouths...
The majority of sellers need to approach pricing for their homes not with a number in their head, but with an open mind...a tabula rasa...seriously.
Over pricing a home will simply ensure that it sits on the market while others around it that are properly priced sell.
Most sellers do have an idea of what their home should be worth. Our job is to explain what the true numbers are.
Hi Patricia,
Too true - its hard to do - but I'm not doing my job if I'm not honest.
Hi Jim,
Not so sure about that tactic. I try to build strong relationships with my competition...I try not to abuse the privilige. If I give away a listing and the seller is overpricing - the recipient deserves the lions share if the seller comes down to earth. After all they took the risk.
Hi Mike,
The buyers are there - but at their price...not the sellers.
Hi Chris,
Yup, that's happened more than a few times. I try to keep a straight face - I wait until later to pick my teeth up off the floor.
Hi Jennifer,
I know - but I'm pretty good at nailing the price - within a few thousand dollars. The only time I was off was when there were no recent sales to support me. The market had moved down more than I had anticipated.
Hello:
Yes, the difference between success and failure on a listing appointment is our ability to make sellers see reason.
Hi Dennis,
It sounds like a nice game to play - but the question is whether the sellers will agree to be realistic. I'm seeing a lot of resistance out there.
Hi Missy,
Taking it off the table is another way to do it. I generally want to know where my client stands lest I get blindsided during negotiations.
Hi Bill,
I'm still seeing a lot of resistance...
Hi Michelle,
I agree that keeping them focussed on the goal is key. I see a lot of people getting hung up over about $1000 - its insane when it gets down to that level.
Hi Lane,
This part is true - after all if no one was willing to take the listing - the problem would cease to be a problem.
I guess the #'s in their head dont usually match the reallity (specially this days) I have a client who thinks her house is worth $40k more, just because that is how much she paid for her landscaping , which ny the way is horrible.
Hi Tammie,
One of the biggest problems is sellers who want to "test" the market. In a depreciating market - this is deadly because while they are "testing" the market - they are losing equity - week by week.
Hi Nicole,
It can be A LOT lower - that's the problem. Sellers are so busy watching pennies they miss thousands of dollars.
Hi Howard & Susan,
They may not have realized just how much equity they had lost. It's truly scary when you come down to it.
Hi Dino,
I like your math - and that is the truth.
Hi Beth Ann,
Thank you so much - glad you enjoyed the blog.
Hi Paul,
Yes, that is one line I should have used in the blog. I have heard that before.
Hi William,
Most people think they have open minds - but when they realize how much equity they've lost, its hard to deal with.
Hi Christine,
True, their "Idea" is just generally higher than the reality. Although I have gotten some realistic sellers.
Hi Beth Ann,
Thank you so much - glad you enjoyed the blog.
Hi Paul,
Yes, that is one line I should have used in the blog. I have heard that before.
Hi William,
Most people think they have open minds - but when they realize how much equity they've lost, its hard to deal with.
Hi Christine,
True, their "Idea" is just generally higher than the reality. Although I have gotten some realistic sellers.
Hi Aaron,
This is true because if we can't sell the home - we've lost. And if the lisiting isn't appropriately priced, there is no way we can sell it.
Hi Ray,
Landscaping??? Wow! That 's not going to raise the price $40k. I don't care how much you spend!
Good points here, Ruthmarie. The market determines the price, not the seller's pre-conceived notions. I just wish the banks understood that better when they are reviewing short sales. How often I have heard some magic number "the investor has to get." Well, the investor can only get what the market will bear!!! Thanks for the post.
Tiffany
Howdy and mornen there Ruthemarie
What a mighty fine blog post, showen seller / the market at the time. Some folks just can't get it.
I have developed a way of using the MRIS monthly stats to eliminate that number in their head.
Thank you for saying so! If a seller has taken cash out with a past refi, I may also try to explain to them that they have already taken the money out..which is often the difference in what they are wanting to ask. That doesn't always go over that great! But I think they get the point.
I never, ever give a seller my number before they give me theirs. Once I find out their number I will try to find out how they arrived at their number. Surprisingly most sellers number comes from what they owe plus......
When sellers over price I think they end up getting less in the end. I know many look at what they owe to come up with the price and unfortunately that doesn't work right now.
Hi Cheryl,
In a depreciating market, that would work very well - good idea.
Hi Angelica,
You are welcome, that's a good way of putting it to those who "cashed out."
Hi Damon,
Interesting cooincidence!
Hi Allen,
No, that doesn't work at all. In an appreciating market you could get away with it.
The best statement you made in the entire post is "Asking isn't Getting". It all boils down to that. It's sad so many sellers seem to be so misinformed about the value of their home. Great post, and congratulations on the feature.
Great post Ruthmarie. I hear this all of the time. Then, they often blame the Realtor for trying to low ball a quick sale... But there are no quick sales in this market, are there? The sad part is, the first Realtor might lose the listing and it might take two or three before they understand the reality of it. Frustrating.
How many times have we heard that one before! I do know the more I hear it (including all the other agent stories) the easier it is to tell it like it is. Soem sellers get it and others don't. But at least I'm standing my ground.
Great post...I am meeting a client this week that already has a price in her head that is totally over the top. It boils down to asking them (after you review the facts with them) "Do you want to list your home or do you want to sell your home" - if they just want to list it, I'm not interested.
Good post, great comments. I think that this is one of the biggest battles we face frequently: pricing our listings. I would feel like a cheater if I did take something grossly overpriced, because I would by my actions give the sellers hope that the home will sell, when I know it will only waste their time, and make them exhausted (as well as me). Sellers telling you that they are in no hurry to sell are LYING! They are in no hurry for the first two weeks, and then you really have your feet in the hot water. Of course, I can't say that I have not sometimes been surprised about the price a listing has brought in, when I would have thought it overpriced. We don't have that crystal ball, but our predictions are by far closer than the sellers wishful thinking. We need to be professionals even in tough times.
Hi Michael,
I'm sorry you are going through so much. I hope you get to sell the domain names! WOW!!! What a list...
Yes it is frustrating. Sellers really don't get it yet.
Hi Christine,
One of the problems is that many sellers feel - "if you don't ask, you don't get." That's the counterpoint I get to "asking isn't getting." What they don't understand, is while the fiddle - Rome burns. THe market is depreciating as they play with the "price in their heads."
Hi Evelyn,
I know how you feel. When you first hear it - the temptation is to go along with it - but not anymore....NOOOOOO WAY! Good way to lose your shirt.
Hi Terry,
Good for you. We aren't doing sellers any favors by feeding a fantasy that could actually cause a lot of harm.
Hi Irja,
I had a situation like this...they needed to sell more than they were willing to admit to me. By not telling me, they compromised my ability to advise them properly. The house finally sold, but it didn't have to be an ordeal.
Yes it's hard to walk away from a listing, but if we do then were not the bad guy. The agent that takes it and doesn't sell it is.
Great post! So true ! I love the, "Asking isn't getting!"
What's unfortunate is how many owner/agents have this problem when selling their own homes. Great Post!
Great article. It is important for us to know our markets and really help owners know what their property will bring in this market. If an agent inflates the asking price or lists it at above market, they are doing themselves and the seller a disservice. Don't buy the listing. I have found that nothing convinces a buyer to reduce the number in their head as when I say, "Just last week we sold a property like yours for..." That helps the seller know you are getting results and that you probably understand what the market will bear. Good reminder for us all.
Hi Sherry,
This is so true. Taking a listing you can't sell is oh sooooo deadly - on all levels. For the agent and seller alike.
Hi Don,
Thanks - but so many see the "list price" as the sales price! Its amazing.
Hi Whitney,
This is why agents shouldn't sell their own homes!
Thanks Jonathan,
It is hard to tell sellers the truth. They often just want to hear what they want to hear. But telling them what we have sold and what has sold generally and for how much is very important.
Ruthmarie, what a great post! We just ran into this yesterday while discussing price on the phone with a prospective Seller. Sure enough, their number was higher than what we thought the market would command...Have to check out Predictably Irrational, sounds like a good book for us to read!
I agree absolutely with you! Sellers should have more information about the real price of their properties. Share this ideas in www.flippingpad.com Is important to spread the word about this kind of topics! Thank you for this interesting article. Have a great week.
Ruthmarie, another great post!!! I think you hit the nail on the head. I had to re-blog it!!