Now is the time for each and every seller to ask themselves, "Did I choose the right agent to sell my home?"
Selling a home in a difficult market can be tough. How often are sellers getting in their own way?
Look, unrestricted lockbox access increases the likelihood that your home will be sold since agents won't have to jump through hoops to show it. Restricing access will greatly diminish the number of showings you'll have.
This morning, I just saw a listing hit a client's search parameters as a price reduction. I went and previewed this property about two weeks ago. It was on the market for $229,000. My clients didn't want to spend more than $195,000 for a home. I previewed it anyway since it had a pool and was the exact, EXACT same floor plan of a home that they didn't get when they were outbid in a three week process.
Why didn't they make an offer on it anyway? - The $229,000 price scared them. There were three other EXACT MODEL MATCHES that were priced below $200,000. All three went under contract. My clients would have easily paid $190,000 to $195,000 for this home, CASH. They really wanted to move! They were worried about whether or not the seller would settle for a price in the $190's so they didn't feel comfortable making an offer. LOSE-LOSE
EVERY EXACT COMPARABLE on the market sold for less than $200,000! It was painfully obvious that the subject listing was overpriced by $20,000 to $30,000. Sure it wasn't a short sale or REO but I doubt there was an agent that would miss the mark by that much! How do I know about every other comparable? The same way I know that there are 6 of this model in a two square mile radius that are in default! My clients liked loved the floorplan so much that I was tracking potential short sales and foreclosures for them...
They fell in love with something else!
Today, this listing sits at $190,000. THE "OWNER WANTS SOLD" comment is even in the MLS report. Maybe the owner should have wanted this sold a couple of weeks ago and had it priced accordingly. If so, my clients would have picked it up. Instead, they paid cash and closed on a home last Thursday. I can only imagine how the sellers insisted on a $229,000 price. BIG MISTAKE!
Sellers, trust the professional that you hired!
Do what you can to sell your home or get a lawn chair out and watch your neighbors sell their home first.
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REALTOR - Servicing Mesa, Tempe, Gilbert, Chandler, Ahwatukee, Scottsdale and other Phoenix metro cities. Mortgage planning experience and certification allows me to help with your lender.
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Mark~ It is too bad that some sellers just want to do it their own way and don't trust their Realtors judgement from the beginning. It is an expensive lesson to learn!
Vickie - No kidding! This home would've been purchased by my buyers for more than the current list price. Unfortunately, three exact model matches closed in the low $190's and now these sellers are competing with a few new short sales and pending REO's. Costly mistake, expensive lesson.
Wow Mark, you really covered that subject. I am always amazed at the way a seller thinks or forgets to think. If a lawyer tells you something, people jump. If an accountant tells you something, you pay. If a Realtor tells you something, you ignore them and do as you please until your plan fails and you blame the Realtor...
Paul - The sad part about the whole story is this home will probably drop another 10% in value by the time it is sold. The sellers REACTED to the recent sales and lowered their price to the new plateau instead of trying to sell quick. I'll be curious to see whether or not they get over $180,000 for the home.
This is a great post. We are finding that a couple of homes that we listed need to be lowered due to recent sales in their area but the seller will not consider lowering their prices. This makes it tought to get the home sold in todays market.
Patty and Scott - I put the post out there for sellers to read. As I commented for Paul, since the sellers only reacted to the new comparable sales amounts, they are still going to trail the market at $190,000. They're on a small lot three houses up from a busy street. They should've dropped into the $180's so they could move it. Otherwise, when the REO's and short sales hit, they're going to have it tough.
Mark, this is an EXCELLENT post. I've been thinking about putting something like this on my website as well as a scenario for buyers - explaining just what the Realtor does - drive them around - show them umpteen homes, etc. The public really needs to become educated...posts like this definitely help. Good job. :-)
Mark, I get the bulk of my listings from expired listings. What I have found is that most sellers do take their REALTORS(R) advice. The problem is they are getting bad advice. I'm always shocked at how many sellers I meet with that have never even seen a CMA!!! They just say this is how much I want and the listing agent says OK. So maybe it was the seller but maybe it was bad counsel.
Teri - Thank you for stopping by and commenting. I was just feeling sorry for the agent that is trailing the market on the property. We do need to educate clients and they need to be receptive to our advice. Thank you for the compliment.
Bryant - Excellent point! From your experience pulling listings from expireds, I'm sure you see many overpriced listings. You bring up a great "other side" possibility to the story.
Mark, It's unfortunate that there are still agents taking over priced listings. I think if we all said no to it, the sellers would realize the truth. The thing that bothers me most is how many of these sellers end up selling for much less than if they had priced properly in the first place.
I'll never understand why a seller would hire an agent to list their property and not trust what they say or work with their agent to get the property sold. If your agent tells you to take down the person pictures, do it. If they tell you to clean up your place, do it.