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You're supposed to tell them they want too much as soon as you've signed them up.
Then you only have to call once a week and say "ready yet?" until they cry uncle.
Of course by then the listing is old
and everyone who MIGHT have bought the property this season has moved on.
Really depends on a lot of factors that are more influenced by VERY local conditions. Suppose you are a home owner in a part of the country with the sort of climate that generally sees weather warm-up by May. You get your home all de-cluttered in March & April. You plant your front door area with lovely spring flowers. You get the lawn all greened up and weed free. Then just as your home hits MLS there is giant area-wide series of storms and many weeks of valuable listing time are lost as people respond to flooding. The total number of closed sales is way down, but maybe prices for similar homes it tiptop condition are up a little. Assuming the flooding was not directly affecting this property no real reason to lower price other than simple days on the market...
In contrast consider what happens if similar really lovely showing home goes on the market. There is a good traffic from showings but local economy is poor. After a few weeks a few similar homes come on the market. The sellers of those homes are literally laid off from thier jobs and desperate to sell. They go under contract for tens of thousands less than the home that has been prepped to sell and on the market longer. Does it make sense to hope that other sales will happen at a more favorable price? Doubtful. If seller really wants to move on it probably makes sense to make reduction in price...
Now if the seller is not really willing to accept a cut rate price then maybe it makes sense to talk about delisting and waiting for a recovery.
These first two answers make no sense to me, unless you add the caveat "...in comparison to how fast comparable homes are selling". I imagine a $28M house, or a tiny 2-bedroom, or a house with a helicopter hanger might require more than a couple of weeks for an eligible or interested buyer to appear.
There are two basic factors in play:
1) owners that REALLY don't want to accept that *their* home isn't worth $XYZ.
2) agents who know that challenging this view (too hard) won't get them signed clients.
It's sort of a symbiosis when they get together. And it can (will) happen at all market levels...
from the $100K 3BR tract rancher all the way up through the truly unique hard to appraise "estate".
Anyone that refuses to accept the fact certain price points have an almost infinitesimally small pool of potential buyers in not rational at all...
Friends that accept listings for pricey / unique properties often take years to find the right buyer and the lack of any true comparable means the process of getting the rare lender to approve of any financing means the buyer's own financial acumen is mostly what is being evaluated.
Sellers that have these kinds of properties and expect offers to just magically appear are beyond irrational and would rightly be called utterly delusional. Fact is that 95% of these type purchases are based on complete dominance of emotion over logic and even that tiny fraction based on some potential for redevelopment rarely come together swiftly. It takes time to do the legal / financial legwork to make a redevelopment happen.
There are two basic factors in play:
1) owners that REALLY don't want to accept that *their* home isn't worth $XYZ.
2) agents who know that challenging this view (too hard) won't get them signed clients.
It's sort of a symbiosis when they get together. And it can (will) happen at all market levels...
from the $100K 3BR tract rancher all the way up through the truly unique hard to appraise "estate".
hth
Quote:
Originally Posted by chet everett
Anyone that refuses to accept the fact certain price points have an almost infinitesimally small pool of potential buyers in not rational at all...
Friends that accept listings for pricey / unique properties often take years to find the right buyer and the lack of any true comparable means the process of getting the rare lender to approve of any financing means the buyer's own financial acumen is mostly what is being evaluated.
Sellers that have these kinds of properties and expect offers to just magically appear are beyond irrational and would rightly be called utterly delusional. Fact is that 95% of these type purchases are based on complete dominance of emotion over logic and even that tiny fraction based on some potential for redevelopment rarely come together swiftly. It takes time to do the legal / financial legwork to make a redevelopment happen.
What Mr Rational describes certainly happens but as Chet alludes to, this is not the only explanation for over priced properties. Every situation is different and should be judged on its own merits.
As a seller id have to question the listing agents initial pricing. Too many realtors say to list high just to get the listing and cost the seller more then a honest initial price would have to start.
1. the agent wants the seller to accept a low price to get it sold quickly...so the agent will make some money!
2. buyer complains that the seller has set too high a price...because he wants to good a great deal, with extra equity!
So many of these 'priced too high' comments are not dispassionate but self serving. IMHO Yes, the seller must give a bit if he wants to sell quickly, but don't ask him to give away what is rightfully his.
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