Over Priced Listings

Sometimes, a seller can be sold a bill of goods. It is not unheard of for an agent to give a prospective seller an over inflated price for the home they are hoping to sell. Then the next agent, upon hearing the first offered price, will inflate the price tag even more. Needless to say, the third interviewed agent might even inflate a bit more with the hope of securing the listing. The seller, in their excitement, most likely will choose the agent who tells them the highest price. Dooming themselves to months of sitting on the market.

Most sellers, who are relying on the expertise of the professional agent, use this method for choosing their agent. Those of us who try to educate the seller using hard data by the way of comparable sold properties can find this a little frustrating. Ultimatly, it is the market that will determine the price of a home.

Sometimes, a seller has unreasonable expectations and an agent will take the listing to avoid losing it to another. Again, educating the seller is crucial, for there their own hopes of success. Sellers don't realize what can happen when an agent takes their overpriced listing. A home in a high profile or high traffic area is the ultimate place to put a For Sale Sign with the agent's information. Potential buyers driving by often call the listing agent's number to ask about the price. Upon hearing the over inflated price, they will decline to view the property, but if they aren't already working with another agent, this is a great way for the listing agent to pick up another client.

On occasion, the listing agent will take a listing with the hope or even a promise from the seller, that they will be able to do a price reduction if the property doesn't sell. A "let's give it a try" kind of attitude. But according to statistics, time is not on the seller's side. A new listing will generate a lot of interest and get a lot of attention, but within a few weeks, the newness wears off and it becomes another stale listing. As the price drops, suspicions will arise as to "what's wrong with it?" In the long run, overpriced homes tend to sell for a lot less then they should have if they had been priced correctly.

It can actually be better for a house if it is priced a little below the predicted market value. A home priced below the market should receive several offers right away, creating an auction like atmosphere and driving the price up to market value. If it doesn't generate more than one offer, then the lower price WAS the market value. Again, it is the market that will determine the price.

If anyone would like to know what the market is truly doing in their neighborhood or the neighborhood they would like to buy in, go to www.accuratepropertyvalues.com for information.