When we show up on listing appointments where the seller was previously listed with another broker we often ask them how they arrived at their price. Inevitably the answer we receive is the broker priced it that way. When we look at comparable sales sometimes we find that the home was priced correctly and just not marketed effectively. Other times we find that the home was overpriced and had no chance of selling.
If the broker recommended a price higher than the market would allow, it’s not your fault. Some agents honestly don’t know the market.. Keep in mind a small percentage of agents sell 10 or more homes per year. In fact, many agents didn’t sell a home last year. Last time I ran numbers the average agent sold less than one single family home in the previous year. This tells me that a large percentage of the homes are being sold by a small group of producing agents. It could be something like the top 15% of all agents sell 80% of all the homes. You get the idea.
Or, perhaps the listing agent needed listings, so taking over priced listings was the only way they could compete. You see, each listing generates buyer calls. The agent who receives the buyer call doesn’t actually have to sell that listing to make money. They can convert those buyer calls into sales on other listings priced at fair market value.
In fact, the longer they keep that over priced listing the more buyer calls it generates, and potentially the more sales the agent can convert. Your over priced listing becomes an asset to the agent.
Regardless of whether the agent didn’t know better and took an over priced listing, or used the seller to generate other sales, you the seller lost. It cost you time and money. And either way, it’s not your fault, unless:
1. You ignored an experienced agent’s advice and selected a price higher than the market.
2. You interviewed several agents and selected the agent who gave the highest price.
3. You priced your home compared to what other sellers in your neighborhood were asking vs. what they were actually selling for.
4. You became emotionally attached to a price. Perhaps you Need a certain amount. The market only cares about what the home is worth, not what a seller needs out of it.
5. You have the nicest home in the neighborhood. If we could pick it up and move it you’d probably get more money, but the neighborhood you’re in is probably holding you back.
We may have to reposition your home in the marketplace to account for this. Selling a home in today’s market isn’t easy. Prices have climbed to a level recently where buyers have turned off if the list price vastly exceeds value. Many buyers have decided it’s time to buy new now that used home prices have climbed so much.
Your home may be worth more than you think. Prices have climbed nicely in the past few years. It is not however a license to over price your home. Selling a home is a lot like fishing, and when prices reach a certain point the fish stop biting. If your home is priced where the fish are it will attract some bites. If your bait is located 20 feet above where the fish are, the fish don’t even know it’s there, because they’re not looking there. Fish swim in schools, and so do buyers. If you have a $200,000 home and price it at $250,000, the $200,000 buyers never go see it. The $250k buyers might look, but quickly realize it’s not what they’re shopping for. You miss the market both ways.
If your home didn’t sell, it may not be your fault. But then again, you are the one paying the price. It pays to find a Top Agent and listen. The market will speak. A Top agent will help you understand the market before it’s too late. If you have a home to sell, or if you tried once already and gave up, perhaps it’s time to call in the professionals. Always call the Ellis Team at RE/MAX 239-489-4042 www.TopAgent.com
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