Houses don't really eat Realtors but some times it seems that way. There is a home in my neighborhood that has been on and off the market for three years. It has been listed with five different agents from five different companies including me in 2008.
When I listed it the owner wanted 275K for it and at the time it was worth about 255K. I sold the one down the street while his was on the market. The same marketing plan was used for both homes, one home sold and the other did not.
The seller decided to take it off the market and then several months later it came on the market again listed in the 250's. It had already gone down in value to 220 by then which means that the seller had already lost out on a potential 35K. It didn't sell when the third Realtor listed it either but the home across the street sold in just a few days.
Each time it has been on the market it has been priced too high and every time it doesn't sell it is taken off the market and then put back on with the for sale sign from yet another Realtor.
Over the years I have learned not to take listings like that. We don't make a dime until the home sells and then only after a successful closing. I check the history of the house and if I see that several agents have tired and failed I pass on it. The house isn't the problem and neither are the Realtors.
This year I have toured several houses with buyers that were on the market last spring. Some of them will be on the market next spring too.
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It’s the truth! Pricing a house in the “sweet spot” is the only way to get it sold. I, too, will no longer take overpriced listings. It’s an easy way to work your heart out and not recoup any of your expenses At the same time, I certainly work with sellers to make sure they get maximum value for their home.
That’s so true. It’s often hard for a seller to understand that the value of their home changes so quickly, up or down.
Sellers and some brokers had gotten used to the appreciating market where they overprice the home and it sells 6 months later because the market improved to meet the price. How times change.
In a declining market, communicating the need to a seller to price at a spot where they are the best property for the price is the most difficult part of a listing appointment.
I made the mistake of getting caught up in a home like that. Unfortunately, I was the first Realtor, so I didn’t know that the seller was going to stay so far behind the market. 3 years later, he’s on his 5th Realtor and has dropped the price $125k. The sad part is that the home is still overpriced.
There are times when is is best to be the second Realtor and of course the last one instead of the number one choice.
You are soooo right! I have seen this again and again. Sellers try to squeek out more money than the market supports, when they realize their number was wrong,and reduce to the number they were told in the beginning, it is too late..the number is no longer valid in a declining market. I have seen sellers start too high, and reject offers that a year later, they are crying they didn’t take! It is like chasing a ball down a hill, and it can’t be caught…
IF YOU ARE GOING TO CONSULT AN EXPERT, PLEASE, PLEASE, PLEASE LISTEN TO THEM!
Floyd Wickman said it is better to be the first born, the second wife, and the third listing agent! Looks like in this case not even being 3rd did the trick.
Good article & Great points!It will be very interesting to see what happens in our market. Pricing a house in the “sweet spot” is the only way to get it sold.I am the target audience for this, and am really considering taking advantage of it.