The echo is everywhere....price to sell, not to sit...Here is another reminder from another Keller Williams agent...Pricing it right the first time gets a home sold for more money than hoping for a "shift" to a higher number...Thank You Ruthmarie !
Whenever I go on a listing appointment, I generally find that the seller already has a “number in their head” about what their home should sell for. This number can come from various sources. It is – unfortunately – almost always higher than the current market can command.
In truth, I can’t blame sellers for this…their minds have been levered to continued price increases to such an extent that the current market has left most sellers blind sided.
The first thing I often hear is that “I need to get X out in order to buy my next home which I can now get for Y because its gone down in price. The trouble if the property you want to buy has gone down so much in price, chances are the property that you want to sell has gone down by a similar percentage. Wishful thinking is often the culprit here. Markets are fluid – that was fine when prices were going up – but it also holds true when prices decline.
Misinformation is another issue. Many sellers look at what their neighbor is asking for their home. Asking isn’t getting. Many listings are overpriced in this market – so setting your price on the basis of other listings is not a wise strategy.
“But my neighbor sold their house for X just six months ago!” Six months is a lifetime in a depreciating market. If your market is depreciating – and many markets still are – then prices have decreased over six months.
Zillow zestimates and other information on the internet may or may not be accurate. Zillow has been off as much as 25% in our area. So if the zestimate of your property seems too good to be true, it probably is.
If you need to sell, price your home competitively – this is particularly important in a declining market where inventories are high and buyers are few. Overpricing your property will result in fewer or no showings. The property will sit as the market declines further – resulting in an even lower price down the road. Overpricing a home is just about the worst thing you could do in this competitive market.
© 2010 Ruthmarie G. Hicks – http://thewestchesterview.com – All rights reserved.
Dear Seller, About that number in your head….
Thanks for posting. We learn a lot from Active Rain blogs. Best Regards,
Exactly! I sure wish all sellers would understand this concept as well as we do :-) No word on you know who...
I remember when I had a stable of listings I knew wouldn't sell. Next, I evolved enough to turn overpriced listings down. And then finally, I've learned how to turn them down is such a way that they come back to me when they've had time to think about things. I'm still refining the last part, but I'm a much happier agent without white elephants on the books.
Pricing is the key!
Love this post! So very true....I have been using Listing Book for my sellers when they list and that is helping them to be realistic...and over emphasizing that the next house they buy ...they will make up the difference ...in what they have "lost"
Thanks again!
Hi all...the very unfortunate part is when you start higher, you end up lower...and of course, when they could not sell higher...it must have been the agent....not the market !
It helps if you make it clear to the seller the results that will happen if the property sits too long.
U bet Ralph...it's all the money that they imagine they will lose if they price it "too low"....in reality the squidge below the market often gets "over asking" offers