Quote:
Originally Posted by middle-aged mom
In my market, there are many agents who "collect" listings. DOM > 365 is a drop in the ole bucket, for them. Several of these agents have their own homes perpetually for sale, too.
This strategy served them well, in appreciating markets whereby the longer a home remained on the market, the more likely it was going to get a better offer than if it had sold, chop-chop.
In this market, these listings eventually tend to sell 25-35% off the original "Twilight Zone" asking price. The combination of seller/agent meant the owners usually get substantially less than they could have, if they priced it right, from the very begining. Instead, it becomes a long journey chasing the market down.
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I agree! Chasing a down market is painful. It's sometimes difficult to get sellers to understand the market is what it is and that pricing is not about what they paid or owe or upgrades, it's about what has sold in the last 2 months.
Another thing about wrong pricing is that if you list at the right price, you are cutting your expenses of the property sooner. Sometimes that is a huge amount of money.
I just came in from showing houses. One is priced $120K about anything else in the neighborhood and most of the homes are over price in that area based on recent sales. My buyer loves the house but is not paying $120K more than the comparables. It won't appraise for the list price anyway. The agent says the sellers are adament about that price. The house down the street is also on the market, but they only allow showings 1 afternoon a week! They are in foreclosure and are mad at the lender so they are not cooperating with the sale.
Ok, enough, back to showings shortly.
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