As an agent, it is very frustrating for me to complete my market analysis, sit back, and then hear the seller tell me why I am wrong, and their price opinion (which is much higher) is correct. It is a fine line to stay "on their side" while trying to educate them, and tell them something they don't want to hear.
This isn't an exact science, and that further complicates the process, as you can have 3 agents come in and wind up with 3 different numbers. There is always a gray area when pricing a home.
It often comes down to deciding whether to take the listing, or walk away from it, if the sellers are being unreasonable. I have lost listings when I came in lower than other agents. But, that happens.
At this point, I usually decide what to do based on how motivated I know the sellers are. If they HAVE to move, I might give them some leeway, and let them get a feel for the market. I am always honest with them, even if they don't like what I am telling them.
The only real test of the market is actually putting the home on the market, and seeing the response, and getting the feedback from the buyers. . Sometimes a seller needs to see this before they will accept reality.
I echo the sentiments of the previous posters. Although we present actual market value, sellers remain adamant that they can get more (i.e., my kitchen is better than that one, I have new caprets, my lot is bigger, etc.). I will often take a listing that is reasonably overpriced, with the caveat that they agreed to reduced if their property does not receive ample showing in the first 30 days and require a 9 month contract.. And, I walk away from properties/sellers that are unreasonably overpriced.
On the other hand, the media is advising potential buyers to wait for longer days on market and price reductions before placing an offer. In this market, I am not afraid to present an offer that is reasonable pursuant to market comparable as one never knows where the seller's mindset is at that time. Case in point, I presented an offer of $850K on a $999k priced property that had been on the market for over a year and it was accepted. But, keep in mind that every situation is different.
Love and Peace,
Francesca, Realtor, ePro
I also see that you're question is in the Lavallette area. Buyers must also understand that most waterfront communities in Ocean County haven't seen home prices drop as much as those inland.
Keller Williams Atlantic Shore
I find that the overpriced agents end up not getting listings down the road because they get a bad reputation.
This is the time, these are the challenges and we, as agents are the ones with the answers in our hand.
We can set a price as a lister, ask for a price as a buyer, see it appraised, get people to agree and the go to a closing.
It's a real business and you must be trained and prepared for what will happen.
They make up numbers that Sellers want to hear and then give them a ridiculous story later to make them lower their price closer to reality.
But, as a buyer, remember, the property must appraise in order for you to get a mortgage, so sometimes it does not matter what the agreement of sale price is because it will either go down or the deal will be dead.
Also, if you have a good buyer agent, they will know either a mortgage broker that knows an appraiser or an appraiser who will get you an idea what the home is worth.
It may be unethical, ignorant, or just poor business practice to take over-priced Listings.
Having said that:
We have always seen Real Estate increase in value, and during the boom of the early 2000's some of it doubled and tripled in value. But now prices are dropping like a rock, and the bottom is nowhere in sight.
Many Sellers are unable to face the reality that their property is worth significantly less than what they paid for it. It can be a real battle convincing sellers what their house is really worth in today's market.