Straight Talk on Tuesday Morning

Tough love with a bite of reality for sellers in New London County serious about getting their home sold.

I've told this story a few times over the past year but finally my story has an ending. Not a happy one.

A year and a half ago, I completed a market analysis for a relocation company for a transferring client who owned a home in Ledyard. My suggested list price of $325,000 was significantly lower than that of the agent I was competing against. The homeowner, thinking his home was worth much more than my recommended price, listed his home at $389,000. The infuriating part of the story is that this home was located in a subdivision of similar homes and not one of them had sold anywhere near that price. To suggest a list price of $389,000 was just crazy. I was so incensed that I sent an email to the relocation contact saying I would have considered it a violation of the code of ethics to suggest listing the property at that price.

Last week the home closed at $210,000. This is not a typo.

Prices continued to drop by about 1% a month in 2009. By listing so far over market value, the relocation company, ended up chasing the market down with a series of price reductions that were too little and too late. In hindsight, my $325,000 estimate was probably a bit high, but had the home been listed at $325,000 in July 2008, I suspect the end result would have been a sales price of about $300,000, a $90,000 difference. It would be unprofessional of me to send an "I told you so" email but I admit I feel vindicated.

The best chance of selling a home close to asking price is within the first 30 days. Sellers would do themselves a favor by pricing their home lower than the competition and lower than recently sold comparable homes. Chasing the market down is never pretty.

Straight Talk on Tuesday Morning is an ongoing series for sellers in New London County who are willing to listen, roll up their sleeves, and do what they need to do to get their home sold. If you aren't serious about selling your home, then move along. There is nothing to see here.

Linda Davis has been selling real estate in Ledyard CT for 33 years. You'll find Linda's complete profile on her Online Business Card.