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the property for sale
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the property for sale
Property Listing
But We Want More Money
When the average seller sits down to interview real estate agents, it's easy
to get caught up in the excitement over choosing a sales price. More money
means more financial opportunities for the homeowner. Perhaps it means
the seller can afford to buy a more expensive home, help pay for her child's
college education or take that greatly overdue vacation. Unfortunately,
uninformed sellers often choose the listing agent who suggests the
highest list price, which is the worst mistake a seller can make.
Establishing Value
The truth is it doesn't really matter how much money you think your home is
worth. Nor does it matter what your agent thinks or ten other agents just like
her. The person whose opinion matters is the buyer who makes an offer.
Pricing homes is part art and part science. It involves comparing similar
properties, making adjustments for the differences among them, tracking
market movements and taking stock of present inventory, all in an attempt
to come up with a range of value, an educated opinion. This method is the
same way an appraiser evaluates a home. And no two appraisals are ever
exactly the same; however, they are generally close to each other. In other
words, there is no hard and fast price tag to slap on your home. It's only an
educated guess and the market will dictate the price.
Is it Too Low?
Homes sell at a price a buyer is willing to pay and a seller is willing to
accept. If a home is priced too low, priced under the competition, the seller
should receive multiple offers to drive up the price to market value. So there
is little danger in pricing a home too low. The danger lies in pricing it too
high and selecting your agent solely on opinion of value.
How It Starts To Go Wrong
The seller of the Spanish home pictured on this page didn't even interview
her real estate agents. She plucked the first one off the Internet because,
"He looked like such a nice guy." He priced her home at $1.3 million. This
agent never heard the local agents chuckling behind his back because he
worked in a different city. After 90 days, the listing expired.
Continues To Go Wrong
The next agent, also from another town, listed the home at $1.1 million.
Months passed. Eventually the price dropped to just under $900,000. Still
no takers. A few lookie-loos, but no serious buyers.
More Than a Year Later
By the time the last agent was hired to list this home, the seller had grown
weary and exhausted. It was now 12 months later. Together, the seller and
her agent priced the home at $695,000. It immediately sold for all cash. The
sad part is the comparable sales in the neighborhood fully justified a price
of $835,000, but the home had been on the market for too long at the wrong
price, and now the market had softened.
Agents Specialize in Expired Listings
There is an agent in my office whose basic real estate practice is
comprised of calling sellers of expired listings and relisting them at market
value. He sits in a small room with a phone, desk and chair, dialing number
after number. Last year he sold more than 34 homes valued at more than
$13,600,000, and he has 18 active listings right now. He makes a pretty
good living repackaging overpriced homes.
Protect Yourself
The question is how much money have those expired listings cost the
sellers? The financial loss often exceeds the extra mortgage payments
paid and goes beyond the uncompensated hassle factor of trying to keep a
home spotless during showings. It affects the value that a buyer ultimately
chooses to pay because it's not a fresh listing anymore. It's now stale,
dated, a market-worn home that was overpriced for too long. Don't let it
happen to you. Don't be that seller of an expired listing.
When the average seller sits down to interview real estate agents, it's easy
to get caught up in the excitement over choosing a sales price. More money
means more financial opportunities for the homeowner. Perhaps it means
the seller can afford to buy a more expensive home, help pay for her child's
college education or take that greatly overdue vacation. Unfortunately,
uninformed sellers often choose the listing agent who suggests the
highest list price, which is the worst mistake a seller can make.
Establishing Value
The truth is it doesn't really matter how much money you think your home is
worth. Nor does it matter what your agent thinks or ten other agents just like
her. The person whose opinion matters is the buyer who makes an offer.
Pricing homes is part art and part science. It involves comparing similar
properties, making adjustments for the differences among them, tracking
market movements and taking stock of present inventory, all in an attempt
to come up with a range of value, an educated opinion. This method is the
same way an appraiser evaluates a home. And no two appraisals are ever
exactly the same; however, they are generally close to each other. In other
words, there is no hard and fast price tag to slap on your home. It's only an
educated guess and the market will dictate the price.
Is it Too Low?
Homes sell at a price a buyer is willing to pay and a seller is willing to
accept. If a home is priced too low, priced under the competition, the seller
should receive multiple offers to drive up the price to market value. So there
is little danger in pricing a home too low. The danger lies in pricing it too
high and selecting your agent solely on opinion of value.
How It Starts To Go Wrong
The seller of the Spanish home pictured on this page didn't even interview
her real estate agents. She plucked the first one off the Internet because,
"He looked like such a nice guy." He priced her home at $1.3 million. This
agent never heard the local agents chuckling behind his back because he
worked in a different city. After 90 days, the listing expired.
Continues To Go Wrong
The next agent, also from another town, listed the home at $1.1 million.
Months passed. Eventually the price dropped to just under $900,000. Still
no takers. A few lookie-loos, but no serious buyers.
More Than a Year Later
By the time the last agent was hired to list this home, the seller had grown
weary and exhausted. It was now 12 months later. Together, the seller and
her agent priced the home at $695,000. It immediately sold for all cash. The
sad part is the comparable sales in the neighborhood fully justified a price
of $835,000, but the home had been on the market for too long at the wrong
price, and now the market had softened.
Agents Specialize in Expired Listings
There is an agent in my office whose basic real estate practice is
comprised of calling sellers of expired listings and relisting them at market
value. He sits in a small room with a phone, desk and chair, dialing number
after number. Last year he sold more than 34 homes valued at more than
$13,600,000, and he has 18 active listings right now. He makes a pretty
good living repackaging overpriced homes.
Protect Yourself
The question is how much money have those expired listings cost the
sellers? The financial loss often exceeds the extra mortgage payments
paid and goes beyond the uncompensated hassle factor of trying to keep a
home spotless during showings. It affects the value that a buyer ultimately
chooses to pay because it's not a fresh listing anymore. It's now stale,
dated, a market-worn home that was overpriced for too long. Don't let it
happen to you. Don't be that seller of an expired listing.
Current National Rates
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http://homebuying.about.com/od/sellingah
ouse/a/overprice.htm
http://homebuying.about.com/od/sellingah
ouse/a/overprice.htm
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