How many people have you given a reality check to recently? With the current market conditions if someone wants to market their home at a price that you feel is to high to sell do you take them on a tour of homes?
Sometimes sellers need to view what is available in the price range that they feel would be the correct price to market their home at. When they own a 3 bedroom 1 bath home and they want to sell it at the same price as one a few blocks away that is a 4 bed 2 bath that has been on the market for 6 months what do you do? Do you schedule a time to take them out and see what the competition is?
In the current market people may not be able to sell their home for what they could have 2 years ago. Most of the buyers that I have been working with have been looking for properties in top shape and priced below other properties in the area. Gone are the days where repainting or carpeting issues could be ignored. The homes for sale need to be in top shape and priced to move if the sellers want to achieve their goals. The people that I partner with to market their home have to be ready to accept the reality of the current market.
How are you reinforcing current pricing with your clients?
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Jim works with buyers and sellers in Liberty Township, West Chester, Mason, Fairfield, and the Northern areas of Cincinnati. Ohio Association of REALTORS® Presidents Sales Club Achiever 2007
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James, you speak the truth. Sellers must understand where market values are currently as opposed to two years ago. Unfortunately for many sellers, they've borrowed against the value of their home two years ago and our now sitting in a precarious position.
Good post and it is something we do weekly by updating our clients of market conditions letting them know what went under contract, what sold and for how much and exactly what seller concessions were on each property, etc........
Todd is right though most sellers borrowed when values were high!!!!
People have seen the drops in local papers, news about foreclosures, higher inspection standards, and higher inventory... speaks volume...
Good post but I am fortunate to be in a market that continues to appreciate and sales are good in new construction. I don't see the same trend in resales - maybe these owners are overshooting because they did not overpay.
JG,
Take a look at this and let me know what you think..
I don`t want to be lucky #4 Listing Agent. Seller refuses to see the light!
Scott I saw that and wondered what some of the REALTORS® in my area are doing on expireds. Properties have been on the market for over a year and they get relisted at the same price.
Todd some of them bit off more than they can chew and we may see some repercussions from that.
Jennifer I wish our Mls system included seller concessions to be able to sellers.
Michael I wish the papers would just stop talking about the issue. Every time I see buyer activity pick up the local paper runs another headline about how bad real estate is.
Julie you are in one of the few markets in the counrty with those conditions then.
I have a sheet for the sellers to calculate their holding costs (alot of our homes are second homes so it's just a money burner empty). I also figure the absorption rate for a home that style or in that neighborhood.
If it costs $4,000 to own the home and the absorption rate is 19 months sellers sometimes take on a whole new list price perspective. ($76,000)
That is a good tool to use. I use it with people that want to buy before they sell.
James, I think it's a good idea, arranging for the sellers to actually tour the home(s) of the competition.
Brian it is the best way for them to get know what their competition is.
James,
I have taken some of my sellers on "field trips" so that they better understand where I am coming from on suggested list price. Every seller thinks that their property is the BEST. In our current market conditions our sellers will have to be more realistic