To complement the seller's letter I just posted, this blog article written by one of my very good friends Carla Muss-Jacobs, gives you the current or future home seller, an idea of how your overpriced listing may affect home buyers looking in your area.
I have been on both sides of the coin as a listing agent working with the occasional seller who pushes to reach for the stars, only to get the reality smackdown back to earth when the comparables around them sell for the original sales price I originally suggested.
Again remember, there are a lot of factors in this market that are out of control of the home seller. Accepting a reasonable offer is not one of them.
If you are thinking about selling your home in the near future, or if you are simply interested in finding out how much your home is worth in today's market, we can perform a thorough a Comparative Market Analysis of your home today. Call 310-508-4354 or answer a few simple questions here.
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How an overpriced listing affects buyers!
Broker Bryant has written a little diddie that got me thinking: Some Little Diddies To Help You Be A Better Lister.
At first, I read it as "better listner" -- which might not be a bad thing for SELLERS!!
Realizing BB was talking about listings, and as an Exclusive Buyers Agents my brokerage does not list properties, I thought about how overpriced listings AFFECT BUYERS! And they do!!
1) Priced above market = Priced above my clients' price range: My clients have a budget. They are, typically, pre-approved for a loan and as the best Exclusive Buyer Agent this side of the grand 'ol Miss, I actually try to get great deals for them. This means, if they are pre-approved for $250,000, we look at properties in that comfort range . . .
If a seller has placed a home on the market to "test the waters" or assume "they can always offer less" -- that overpricing takes away my clients' motivation to see your property.
2) Priced above market = Making the other listings look good: Happens all the time when I tour with clients. There's a few overpriced properties in the mix. Of course, we might not realize this ON PAPER (going off the info on the listing sheet). But, once we get to the property we see just how much "puffery" the listing agent / sellers are doing.
There are OTHER homes on the market along with yours. Your overpriced listing just made the house two blocks away look REALLY GOOD!!
3) Priced above market = Scratching it off our list: If the properties in the buyers' price range have sufficient inventory, guess what? We're not going to assume your $25,000 above current market is a viable property to tour.
Buyers and their agents aren't mind readers. If you told your listing agent "we will take less" don't assume anyone else knows this!
4) Priced above market = Over all annoyance: Don't expect "feed back" on your listing to provide you with the correct pricing. If the listing agent didn't run the comps correctly, doesn't have their finger on the pulse of the market, don't expect buyer agents, or buyers, to price the property for you.
The listing agent who prices above market, then calls for "feed back" is annoying. The homes currently on the market are YOUR competition, not the buyers.
5) Priced above market = Missing the market: Added market time can be the kiss of death. Buyers are not coming out in droves in our local market. With pricing, the idea is to capture the market, not give buyers an excuse to cross a property off the list.
Prior to listing a property, many sellers have talked with several listings agents. If they list their home with the agent with highest list price, they are NOT LISTENING . . . TO THE MARKET!
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~ Representing Buyers Since 1999 ~
Carla Muss-Jacobs, ABR, CEBA, e-PRO, Realtor®
Principal Broker/Owner ~ EBAPortland, LLC
YOUR Exclusive Buyer's Agent
(503) 810-7192 / Carla@CarlaHomes.com
CHECK OUT www.EBAPortland.com for Home Buyer TIPS!
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ALL RIGHTS RESERVED ©
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