In the Real Estate industry there is nothing that will cause a home to languish on the market more than an improper list price. Of course there are countless homes that come on the market across the country daily that are in fact overpriced.
There are two ways that homes entering the market are overpriced. The first is an agent convincing a seller that their home is worth more than it actually is. This happens quite a bit and in Real Estate circles it is known as "buying a listing".
The scenario involves a perspective seller interviewing Realtors and choosing the agent to use based on the market value given for their home. This is absolutely one of the worst ways to go about picking a Realtor. Unfortunately this means of choosing a Real Estate agent happens all the time!
The second way that homes end up coming on the market overpriced is a seller having unrealistic expectations and a Realtor just going along with it. The Realtor takes the overpriced listing and runs with it. At some point the agent hopes that the seller will come to their senses and get realistic with their pricing.
To continue reading see how to know your home is overpriced. The article is a humorous look at how so many home seller's will look beyond pricing as to why their home is not selling. You will see ten ways to know if your home is overpriced. I am sure many Realtors will relate to the post as we hear these things from home seller's all the time!
We all know by experience that overpricing Real Estate is the kiss of death. Don't make the mistake of overpricing your home! Look at the market data objectively and make an informed decision. Real Estate data never lies. Please take the time to click the link.
I am sure you will enjoy the article as it will surely hit home with your experience of being in the Real Estate business with those seller's who have unrealistic expectations. if you enjoy the article please consider social sharing - thanks!
Connect with me on Google+
Overpricing is truly, as you say, the kiss of death. I like my 30-10-1 rule: price is definitely too high if in 30 days you have less less than 10 showings and have not received at least 1 offer.
We always say...we may not always be the first agent...we are the last...and will tell a seller what they need to hear..not with they want to hear.
Good morning, Bill... I loved this article when I read it on Google+ and I shared it.... hope everyone reads it before commenting on it...it's very funny....
Right on, Bill! Nothing like a little humor to make your point, and you made it well.
Buyers often will ask...why is this house still sitting there? what's wrong with it? More often than not it is because the house was overpriced or started out overpriced and now it is just sitting there on the market.
I think the challenge for us as Realtors is to manage expectations in a market with decreased inventory. Maybe scarcity drives prices higher...but we need to set data-based expectations around the limits of that increase....
Hi Bill, That was a great article you wrote and so true. I used to tell Sellers that 90% of my marketing plan was getting the price right. In this market it is getting closer to 99% because the properties sell within days of listing them. I hope you are doing well Bill, and hope this market stays right on its present trajectory with a few more sellers ( inventory) in the mix.
Thanks everyone for all your compliments on why a seller should not overprice their home!
Bill The first thing I look at when I pull homes up on the MLS is days on the market
Bill, there is nothing worse than a listing that is selling the other homes. I love the branding on your other blog!
I love the use of the link to your blog. I love the look of your other blog.
Thanks Katerina! A little Real Estate humor interjected into a subject that rings true for a lot of Realtors.
Thanks very much Ericka, Petra, and Melissa!
Thanks very much Pat & Ed for the compliments!
Thanks very much Waynette. I appreciate the compliments. As you know overpricing a home is one of the worst things you can do in real estate.