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Have a friend in another state. They own a home, nice, only 8 years old, newish, etc. No obvious large minuses on this property. Other "comps" have sold. IE there is activity.
They are in a serious money bind and need to sell.
Their realtor "wont let them" reduce the price. It has been on the market for 9 weeks now and has had ZERO showings except a single person who came to their garage sale and thus was not even technically referred by a realtor.
In my mind, if a house is not an obvious dog and it is priced somewhere near reality, is not a pile of turd; they should have at least had some showings.
I am suspecting the realtor is "protecting the local market" from declines by not allowing a price reduction to provide a lower comp for the area. I also suspect they may have been given a truncated comp listing showing only the high sales for the area.
1) Correct me if Im wrong. The sellers dictate the list price? The realtor is free to walk if (s)he does not like it but THEY are in charge.
2) Is there a non-realtor way to get a FULL list of EVERY home that sold in the area? Its a smallish area tho not tiny so should not be an overwhelming list.
3) Does not the realtor ethically work for the seller over the "overall market"? and thus is acting unethically IF they are doing my suspician?
It should be a team effort between seller and agent but ultimately the seller is driving the train and determines pricing. I cannot imagine a listing agent not "Letting" them lower the price. If anything some agents may lower the price to easily since they don't get paid unless the home sales.
Your friends need to take charge and tell the agent what they want.
One thing I've noticed is since April 30 and the end of the tax credit many starter homes are not selling. All the potential buyers who would be buying now probably bought 2 months ago and are out of the market. From what I see, that section of the market is very very slow.
Sometimes those Govt programs have short term benefits and long term problems. Imagine that.
The seller determines the price. They should have a serious talk about pricing strategy with their agent.
No showings for over two months should have prompted the agents to initiate a discussion on pricing, staging, marketing etc.
The seller determines the price. They should have a serious talk about pricing strategy with their agent.
No showings for over two months should have prompted the agents to initiate a discussion on pricing, staging, marketing etc.
Agreed.
To the OP, one house won't effect the housing market. I think if anything the agent may be trying to maximize their commission and in doing so is possibly hurting their client's financial situation. At this point the house is a PRODUCT and has carrying costs....
It should be a team effort between seller and agent but ultimately the seller is driving the train and determines pricing. I cannot imagine a listing agent not "Letting" them lower the price. If anything some agents may lower the price to easily since they don't get paid unless the home sales.
Your friends need to take charge and tell the agent what they want.
One thing I've noticed is since April 30 and the end of the tax credit many starter homes are not selling. All the potential buyers who would be buying now probably bought 2 months ago and are out of the market. From what I see, that section of the market is very very slow.
Sometimes those Govt programs have short term benefits and long term problems. Imagine that.
Excellent advice that I second.
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