Apology to Home Seller's

Jim,

...back to basics, again and again. It makes you wonder what the worth of common sense is!

Steve

Jim, very true and many don't understand nor consider the fact that those things don't have an affect on the correct pricing of a home.

I really don't even address all of those items. I bring printed comps with me, of both sales and active listings. I have my own copies and I give them copies to keep. If the market is still declining, there's nothing you can do.  I tell them the truth. I have no respect for agents who will lie to a seller, just to get a listing.

When the seller goes on to buy his next house he wants a better roof than the one he just sold! When a seller needs to sell so many seem to forget that when they buy they expect a house with a good roof, dry basement, garage doors that work, and windows that open.  As you said, these are not upgrades, they are things that make a house worth buying. Upgrades and updating sometimes make the house more valuable.

Love it! Love it! Love it!  My favorite is, "I can't lose money on this house" - how did you expect to make money when you have already spent all of your equity?

Tina in Virginia

Oh jim this is great. Those are generally  most sellers objections to why they think their home is worth so much more. Great blog I love it!

I love your list.  I have used them all at one time or another.  I especially hate the one where they say, "I NEED....."   I always say to them that I have NEVER heard a buyer ask what a seller needs.  Buyers don't care what they need!  Good list.

It's unfortunate to have to hammer this point home with some people; can be such a touchy situation.  I don't envyou REA's at all.

Good one, Jim. Market value has nothing to do with extraneous issues; however, as you pointed out, some sellers will seek out an agent who will accommodate them in their wishful thinking.

Obeoman Steven Stearns (www.obeo.com)  Even though it is so basic, it is interesting how often we have to address it.  I call it..."Ice cream has no bones."

Ray Nellum, Fort Smith Real Estate (Ramona Roberts Realtors)  It is interested how many have no clue in what in involved in a price of a home.

Lisa Hill (Daytona Beach REALTOR®) (Adams Cameron and Company)  I really do not even use Active Listings anymore.  I only use sold comps in the last 3 months.

Keller Williams Realty NY  You are so right.  Not everything is an addition to a home's value.

Tina Merritt - Virginia Beach Real Estate (Long & Foster Oceanfront - Virginia Tech Hokie)  A lot of sellers want that money twice.  I always ask "Did you put any away?"  Most cannot even remember what they spent it on.

Jim, I rarely use active comps either.  Solds only and within 6 months (our market here is more stable than yours). 

Good basic information here that people forget too often.

Orlando & Lake Mary Real Estate Expert, Heather Joubran (RE/MAX Central Realty)  This is such a price critical market that padding the price even a little bit is too much.

Barbara S. Duncan ABR, CRS, GRI, e-PRO Searcy AR (RE/MAX Advantage)  LOL!  What I need I can't have!  Home sales!  LOL!

Tori Lynn Ross - Omaha's Premier Home Stager (Ross Designs, LLC)  It is all about telling the truth, and being the professional.

So true, so true.  Always has been is not and always will be.  A house is only worth what someone will pay for it.  The reason for selling has no bearing on what the buyer will pay.

I am often asked about what the sellers reason is for selling.  I never really understood the question.  They're selling because they want to. 

Buyers can be irrational too. 

Stephen Graham (Associate Broker) Buyer's Agent (Realty Professionals, Inc. - Atlanta, GA Georgia)  Thise agents tell teh seller's "What price were you thinking?"  "That's exactly the number I had in mind....sign here!"

Brenda Carus (Re/Max Towne Square Realty)  Actives really have no place on a listing presentation.  It is like referencing expireds or withdrawns.

Lenn Harley, Homefinders.com, MD & VA Real Estate  Lenn it never ceases to amaze me the reasoning I get on a listing appointment on what price the seller wants.  First of all they as a real estate professional there to give them the price, but really they had another number in mind already.  A price wish list?  I would like to be 35 pounds lighter.

Jim,

So true and it seems like many of my prospects are in that situation.

Jim, I do a two step listing......preview the home, then return with a market analysis. Right now, I base the CMA on solds only within the last 3 months, sometimes more if necessary.  Can't be sure if the market will be same in a few months.

I am not the one to lie to a seller.  I like being up front in the very beginning and if I do not get the listing I am okay with that.  I have a potential seller but after telling him the truth I may not get the listing.  I am fine.  Thanks for the post.

Neal Bloom-Realtor ® Assoc.-CRS-Weston FL (RE/MAX Premier Associates)   Everyone wants a deal, and a profit but as whose expense?

Kay Van Kampen, Broker, Springfield Missouri Real Estate (RE/MAX Solutions)  We do a one step, but we are always open to ideas.  The market is really changing too quickly these days!

Sonya Rosser (ERA Buckhead Realty  I feel the same.  If I do not get the listing, no loss.

I am so grateful to be in my rather stable market. The county to the North has now been designated a "declining market". It is the only one in the area with that label.

Sarah Nopp, REALTOR(R), CRS. RE/MAX Four Seasons, Olympia WA (RE/MAX Four Seasons)   You are blessed.  Strange market in many areas.

Jim..This list is sooo on target.  I'm just left wondering why reasonable adults somehow loose rational perspective when it comes to being realistic about home pricing.  Fortunately, at least in our experience...more people seem to get it & we're hearing less of these types of comments.

Jim...well said! I just had a sale that the appraisal was lower than the contract price. We worked on our Seller's behalf and got them $15,000 back on the appraisal price. My Seller STILL thinks he should of got the contract price. Hello!!!

Jim,

Great list. One way to approach a listing presentation is to send the seller this list in advance and ask them to read and understand it and then the conversation about the listing price could be more objective.

Great list. People really think they can get what their neighbor did last year. And tons think they get back 100% of what they "added on" in extras.

Audu Real Estate~Grand Rapids, MI Real Estate Broker  We had one recently where the seller just wanted to hear what they wanted to hear.  We wish them well and we are on our way.

The Thom And Ray Team  Some folks think we control the appraisal price.  It will never happen.

Esko Kiuru - Las Vegas NV Mortgage Consultant (Sinifox Financial)  They never read it.  Even pre-lst packages...they never read them.

LaNita Cates (REMAX of Joliet)  Many believe they are entitled to a 100% plus extras.  They will find out the hard way...not so.

Hey Jim ~ Good stuff as always. It is funny how Sellers try to justify things.

Very good!  You CAN answer these objections. It's just uncomfortable for you. 

Honesty is the best policy.

We, as real estate agents and appraisers DO NOT set prices.  ONLY the buyers decide the actual value of a home at any given point in time based on what it is and where it is...

Jim, great list, but if every seller was a broker, then they would already know this. Our job becomes more difficult because home owners (sellers) don't know what we know, though it is very comical at times :-)

DOUG FRITCHIE-Silver Legacy Properties,Inc  Rationalization is the only way to go for some.

Toby & John T. Williams (Prudential Douglas Elliman RE)  I am never afraid to share the truth.  I run a business, and it all about objectivity.

Peter Z. Nikic ... and a lot of unethical agents lead the sellers wiht lies!  They buy the listing with manipulation.