Posted on Wednesday, October 10, 2012
Listing appointments are tough sledding these days. Home owners – who may have diligently read along with the real estate news of the last few years – may not have translated the local news to the value of their own property. In their eyes their property may be worth a lot more than what the market says. We do not enjoy advising our client their properrty is worth less than they are thought but agreeing to an overstate selling price helps no one.
It looks like we are not alone in this. Yesterday Florida Realtor reported (please see http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=3&id=282103) “Many homeowners think their home is worth a lot more than it really is, according to HomeGain’s third quarter 2012 National Home Values Survey Results of 300 real estate agents. Seventy-seven percent of sellers say their home is worth more than their real estate agents’ recommended selling price, according to a survey of real estate agents.”
One might say “So What”? Well here is the so what. Overpriced homes sit on the market. Statistics show the online market will pass them by in four weeks or less – and these online buyers will buy something else.
So who gets hurt? Well the seller primarily as subsequent price reductions may cause buyers to “sharpen their knives” and negotiate much harder. Sellers my also miss a declining market and chase it down further, forgoing earlier and higher selling prices.
Realtors are also hurt. Why? Reputation. We have a few in town. When the listing goes in, eyebrows are raised and properties sell more slowly for that Realtor. Future listings become difficult as Realtors promising the moon are recognized and sometimes set aside. My grandfather use to say “your reputation is speaking so loudly I cannot hear you.” You might think twice before becoming one of those Realtors with overstated selling prices.
So what do you do? Stand tough on listing appointment day. Show the seller the com parables and walk them through the logic. Then comes the tough part … think about walking away if they do not agree. While you are at it on listing day set expectations for price reductions – like when and how much you expect to write in as the market reacts to the property.
Tough stuff but sellers are best served with our best efforts at price estimation and price reductions.
Follow along with us on National And Naples Florida real estate and register at NaplesBestAddresses.com and subscribing to our YouTube channel at http://www.youtube.com/user/naplesbestaddresses?feature=results_main. Contact us at 239.595.3921.
All the best
No legal, investment, or tax advice is being given in this Blog. Consult with legal, financial and tax professionals before acting on any real estate transaction. Actual real estate price and sales results are subject to market forces and are not completely predictable. The writings of this Blog are intended for the sole use of our clients.
Some of the data relating to real estate for sale on the NaplesBestAddresses.com website comes in part from the Broker reciprocity program of M.L.S. of Naples, Inc. The properties displayed here may not be all the properties available through the MLS reciprocity Program. This information is deemed reliable but is not guaranteed. Buyers and sellers are responsible for verifying all information about their purchase prior to closing.
Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.
Mark Goebel, PA REALTOR Coldwell Banker 5th Avenue South Mobile: 239.595.3921 NaplesBestAddresses.com Facebook: NaplesBestAddresses Youtube http://www.youtube.com/user/naplesbestaddresses?feature=results_main