I showed a house this week located in a very nice gated community in Viera, Florida. I must admit that this particular house was not necessarily one the buyers had selected but rather one I chose as it was vacant.
It was Father's Day and I did not want disturb sellers unless my client really had a real interest. This opportunity did allow me to further define my client’s preferences.
As it turned out this one was pretty much what they had in mind. Of course I told them the price was way too high and why I chose to show it.
After I gave the seller's agent feedback on the price I was advised the seller knew it was way too high but wanted to guard against getting low ball offers.
Such flawed selling thinking because…
Sellers have no obligation to entertain low ball offers – reject them or counter the offer, period.
Sellers usually don’t get showings if they are not reasonable on the price (a let’s talk price). This vacant home was getting shown as an example – not as a real consideration.
If you are really interested in selling your Viera Florida home, price it to sell otherwise it will likely just be ignored!
It was Father's Day and I did not want disturb sellers unless my client really had a real interest. This opportunity did allow me to further define my client’s preferences.
As it turned out this one was pretty much what they had in mind. Of course I told them the price was way too high and why I chose to show it.
After I gave the seller's agent feedback on the price I was advised the seller knew it was way too high but wanted to guard against getting low ball offers.
Such flawed selling thinking because…
Sellers have no obligation to entertain low ball offers – reject them or counter the offer, period.
Sellers usually don’t get showings if they are not reasonable on the price (a let’s talk price). This vacant home was getting shown as an example – not as a real consideration.
If you are really interested in selling your Viera Florida home, price it to sell otherwise it will likely just be ignored!
Gary L. Waters PLLC, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region.
Read my blogs Florida Homes for Sale, Moving to Brevard County, Florida, and Brevard County Florida Real Estate Information.
The only medicine for this time of "logic" is data on the ratio of selling price to final list price in your market.
Many sellers...having heard lots of negative facts over the last few years, think they know how that works.
They don't.
You have to tell them.
Absolute flawed logic. Up front and honest.
Hi Gary - Very true. And if it languishes on the market and finally gets reductions, the buyers will want to know what's wrong with it. They may be reluctant to bother with it, since it has apparently been rejected by a lot of others before now. Better not to start off overpriced.
Gary; did your buyer make an offer?
You're so right, Gary--price it to sell or it just SITS on the shelf for months and sometimes YEARS!
Gary
The pricing theory for 2011 is out of step with the market, bad choice in pricing a home.
Good luck and success.
Lou Ludwig
BTW, I went to your websites and couldn't find the link you were referring to on my post. I'd love to thank you publicly for it if you don't mind leaving me the link. Thanks!
Jim - You are right. I think in this case the listing agent had the data but was shy about forcing the issue. Thanks
Lou - Pricing theory of 2011...sounds like a 4 credit hour course. Thanks!
Kenneth - Nope. WHo knows if they ever will. I hope so! Thanks.
Susan - Thanks. Sellers don't understand the negatives of lingering on the market!
Debe - It was scheduled to go live this morning. Here it is...
http://www.garywatersrealty.com/2011/06/home-buyers-perform-your-own-homework.html
Corinne - Absoutely, thanks!
Hi Gary,
That is truly flawed thinking on the seller's part. Sometimes it is hard to get sellers to listen to reason and logic though.
Lisa
Got it! I couldn't comment there but, thank you so much for the back link.
Enjoy your Sunday and thanks again, Gary!
LIsa - Flawed is a nice way to put it! Thanks.
Debe - Thanks. I disable comment on that blog because of all the spam!
Gary, knowing the MLS stats helps combat that flawed thinking - in our MLS original list price to sales price is 10%; list price vs. sales price is 96%. Proving that getting close to market value wins everytime.
Sharon
Guard...hmmmm...it will also guard against buyers who will gladly pay the price the house will appraise for !
Gary - this is excellent! I find that pricing a home too high does in fact encourage low ball offers, really really low ball offers. Plus, they usually do not get shown.
Barbara - Your last statement is the reason they never sell. If no one sees them then the low ball offer never comes either! Thanks.
Sally & David - Very true - like my buyers!
Sharon - Very true. Some people think there is always a bigger sucker out there willing to give theremoney away!
☂ At least you got a pleasant response from the LA Gary. You are so right in that it is flawed. I have never seen that strategy bring a higher price or even a higher offer. My experience is that is the listing always languishes because it doesn't compete with the homes priced right in that range, and then requires multiple price reductions which in turn leads to a stale listing. In the end the discouraged seller wind up taking LESS than they ever thought...
Pamela
Gary, you are so right! Overpricing means having multiple price reductions and a stale listing....price it right!
Pamela - Thanks, verytrue. I call taht pricing in the rearview mirror. If they only knew!
Barbara - Stale not a sale! Thanks.
Gary I shake my head whenever I hear similar reasoning. You want to get your home sold in this market you better price it right.
I try to get sellers to understand that and most of the time, I succeed but there are those who really believe that the buyer is going to #1 come and view the house, and #2 give a very low offer. Some people you just can't convince.