It is a touchy subject...pricing a home for sale. If you study the current absorption rates and understand your markets actual odds of selling, then perhaps what we really need to educate our sellers on is how to determine the VALUE of their home.
When you shop for a new outfit, you pass by all kinds of prices you are NOT willing to pay, until you find something of VALUE.
Realtors and Sellers do not determine home values. Appraisers do not determine home values. Only current market conditions and buyers determine actual value. Once a deal has been struck between a buyer and seller, that is where the value is determined. A home is only worth what someone is willing to pay for it.
I think showing several comparable properties is good, but how about getting in the car and actually taking your sellers through their competition? Information is POWER. In order for the market to loosen up and begin to have a better flow of properties selling, the issue of pricing and value must be addressed by all of us in this industry.
The longer I am in this business, the more I want my listings to sell, not sit. I want my seller's to be able to get where they want to go in their desired time frame. I welocme your comments and ideas.
BethAnn Long ~ Spokane Realtor- Coldwell Banker Tomlinson South Inc.
509-362-4607
...there's no place like your home!
Showing them the competition is a great idea. We can talk comps all day long and sometimes do. But, if they SEE the homes, they may think twice.
Yes Don, It's good for us to SEE THE HOMES too!
So true, a seller needs a ready, able and willing buyer to make a sale. I always show my sellers what their competition is along with what has actually sold recently and what is sale pending.
Good commentBeth, I share the same idea on listings too, I want to get listings to be sold, not to keep for sale. If I have an unrealistic seller and see that it won't work, I'll refer them to my competition so they will actually help me sell my listings.
BethAnn: Actually, today in many cases... regardless of what price a seller and buyer might agree upon... a home is often only worth what an appraiser will appraise it at... unless the buyer is paying cash. There are some very frustrated folks out there... I am sure.
By the way, BethAnn... how did the Hope Chest Benefit concert go ? Any video or audio you can share with us ? I bet you were great !
BethAnn, Just had a deal that underappraised 20K and we had to renegotiate. I like the idea of showing the competition - more often than not, sellers need a reality check to even get the listing price in the ballpark.
I totally agree that showing a seller the competition is great strategy for helping a seller to understand the current value of their home. As home stager, I don't address pricing with my clients, but I certainly understand the importance of them pricing properly.
I also show my staging clients the comparables to demonstate how effective staging will set them apart from their competition leading to a quicker sale for a better price within the parameters of their market conditions. Given today's challenging market conditions, professional home staging is a smart strategy that helps the seller make as much equity as possible on their home and even tends to increase their home's appraised value.
We need to both educate the seller on the current value of their home and help them maximize that value. Well-executed home staging offers great benefits to homeowners trying to sell in today's market.
So many sellers truly believe that their home is more "valuable" than the competition because of the condition and updating they've done, until. . . . you take them to actually see the competition. It's a great "wake-up" experience for them.