"I can't understand why my home hasn't sold, yet." I'm sure we all have heard these words, especially with the Real Estate Market being slow these days.
It truely amazes me how some of the sellers insist on a high (sometimes outrageously high) asking price on their home. I recently gave a presentation to an older couple looking to sell their home. They fell in love with a home in Tennessee and were purchasing it contingent upon selling their current home. I came to the meeting prepared with "Comprables" that sold in their area. Anyway, they gave me the tour of their home and grounds. We then sat down to discuss the sale of the home. I showed them the Market Analysis I prepared before I saw their place. I explained everything about the Anaylsis and then gave them a figure, based on the Report and figuring in the extras of the home. The figure I gave was a median figure. Of course, I explained that it was up to them as to what price they decided to ask. I did suggest that if they wanted to sell quickly, they should ask at a lower price range. The answer I got from them was "I thought it would be worth a lot more". I did explain that this is currently a buyers market and that the high priced homes are not selling well. The home needs to be priced to attract the buyers. (I do want to mention that they were not really interested in my marketing plan. Just my opinion of what the market value of it was.) The next day, I noticed it was listed with another broker on the MLS and guess what?? It was listed for a higher price. Did they not understand what I said to them?? Was I speaking in another language? I thought I put it in simple terms for them to understand. To sell quickly, you need to lower your price in a buyers market. I guess this will be on the market for a while.
I have another instance where the asking price is $875,000. Now, this home is well worth the asking price. I've had it listed for 2 months now and not one showing. The seller contacted me asking why it hasn't sold. I had explained to him at my presentation, before listing it, that the higher end homes DO NOT sell quickly. They take time. (FYI, he has moved into another home and therefore, wants it sold, quickly.) With the market being in a bit of a slump, high end homes are not selling. Period. I am doing all that I can to advertise it (my websites, numerous other websites, open houses, and, also different publications). That is all I can do. The seller in the meantime is getting very impatient.
Here's another one for you. I noticed a listing on the MLS for a 13 acre lot selling for (are you sitting down?) $1,200,000. And it says it is great property for a developer. Do they not realize that new housing is also in a down market? The developers are having a hard time selling the new homes they currently have on the market. Do you think that they are interested in developing more land if the current is not selling? Think about it.
It would be nice if the sellers would start realizing that in order to sell a home, they need to adjust to the current market. The listing price should reflect that and not have such an outrageous figure, that buyers will not even consider it. I guess they just don't want to accept reality and are still living in the Real Estate boom from a couple of years back.
BM,
Great story. This ties into my earlier post New Rage sweeping Sellers! "Let`s Play the Blame Game!" It`s very distrubing indeed!
As long as you've been forthright with the sellers about the current market conditions and the fact that prices have fallen in many areas, then it's on them if the house doesn't sell. That said, it's the seller's right to not buy into the falling market thing and be forced to lower their price. If it doesn't sell though, that is on them.
If you get a chance, check out my post, "I"m not going to lower my price any further!"
Bob Mitchell
ValueList Real Estate Services, Inc.
Brigita, I don't think they ever listen. You can give them all the facts, but they have a price in mind and they won't budge. When their over priced listing sits and sits they'll remember what you told them in the first place.
Say...NEXT!