We've all either had them as clients before or they have contacted you to find out the value of their home and when you tell them the truth, they pretty much tell you to go kick rocks!
They don't want to hear what you have to say because it isn't what they want to hear. It's as if they have their fingers stuck in their ears while yelling "La La La La La La La La La" while you are talking to them.
My favorite is when someone that has lived in the place for like 5 years and the home is now worth double what they paid for it, yet they "can't afford" to sell their home at the price I am suggesting. Umm....can't afford? You're making 100k on this place, so what exactly is it that you can't afford?
But here's the kicker. They want to sell their home, buy another home and pay cash for it, pay off all their debts and put a kid through college. Well hell yeah, don't we all? But...hello....that's not reality! Reality is selling your home at the amount the current market will allow you to sell it for. Meaning, it's only worth what a buyer is willing to pay for it and nothing more!
Selling a home is not your answer to financial freedom and living debt free the rest of your life! Well, unless you've owned a home for 30 years and paid 35k for it and it's now worth 500k. There are always exceptions to the rule. However, that rule doesn't apply to very many people.
Just because you own a home and you want to do certain things after selling it, doesn't mean you're going to be able to do those things! And just because Fred & Wilma down the road, who's house happens to be identical to yours have theirs listed at the price you want to list yours at, which is about 50k too high, doesn't mean you should do the same!
It's important that you have your home priced according to what is UNDER CONTRACT or what has RECENTLY SOLD!! Not based on Fred & Wilma's house which is way over priced!
Here's a perfect example for you!
- My broker listed a villa on 3/10/06 for $324,900. It probably should have at the time been listed at $299,900.
- She lowered the price on 4/26/06 to $299,900.
- Again lowered the price on 5/31/06 to $289,900
- She refused to lower the price on it for quite a while. During this time, the listing expired and she re-listed it again with us.
- On 3/21/07 nearly a year later, she agreed to lower the price to $259,900 only after an identical unit as her's that I sold to one of my buyers, sold for $250,000.
- Finally on 4/1/07 her listing expired again and she didn't want to re-list with us, because we were asking her for another price reduction and she was again refusing.
- On 5/1/07 she re-listed it with another agent at $259,900.
- It's now 84 days later and a unit that is 500 square feet bigger than her's and many more upgrades just sold last month for $225,000!
She should probably be priced somewhere under $200,000 right now, yet she is 60k over priced!
Now mind you, she bought this place 5 years ago and paid $139,900 for it. Yet, she couldn't afford to lower the price! Well that's fine, then sit on it! Who's going to even look at your home when it's priced 35k higher than a much larger unit that recently sold? NO ONE!!!
Did she think we were telling her to lower the price just for the heck of it? I will never understand why some people are so adamant about refusing to listen to their agent!!
We have since decided that if we have a listing and the price needs to be lowered and the seller refuses to lower the price to what we suggest based upon comps in the area, then we will terminate the listing agreement we have with them. They can go find someone else to blame and wonder why their house hasn't sold.
Hey, look at it this way if you're one of these people that refuses to listen......
While your neighbors that priced their homes correctly to sell, sell them and move out. You will still be there to meet and greet the new people that move in to your neighbors home! You along with Fred & Wilma can become the welcoming committee for your neighborhood!
Being a greedy seller in today's market will literally get you no where! You either need to get serious about selling your home, or brush up on your cake baking skills!