Motivated Se…, Home Seller in Upper Arlington, OH

Agent set the price after I put 15k - 20k of improvements. So far, reduced 20k and he thinks another 10k. Is this normal?

Asked by Motivated Seller, Upper Arlington, OH Thu Aug 5, 2010

I never sold before and thought he would give good advice on price so I went with his figure. I already planned on most of the improvements so I don't think he led me much there, although I did use contractors he knew. It just feels like he went overboard and misjudged the market. All he tells me is the house is a great product and the right buyer hasn't come through and talks about other realtors having problems in the market. I feel like he should be bringing buyers but, aside from OH's, he's only brought 1. There've been a handful of other showings but nothing is happening. And he's been late to both OH's so I ended up taking people through each time.

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Hey Mr. or Mrs. Seller, if you'll give me the MLS # I'll take a look at the listing and give you me 2 cents. BTW, I don't list houses, I'm an Exclusive Buyer's Broker, so I'm not trying to get your listing. Let me know if I can tell you if there is something that stands out. I can't give you an indication of value since you have an agent but I can give you and idea of why it may it may not be selling.

Good luck.

Jim
0 votes Thank Flag Link Fri Aug 27, 2010
I have lived in this house over 20 years. It has been updated throughout. I did additional improvements that I thought necessary to sell - refinished hardwood, new carpet, exterior paint, landscaping, some interior paint. The agent showed me the comps when we first discussed price but after the improvements, he pushed up the price. I never used the agent before - a very dear old friend recommended him. Also, the contract set the price lower than the one he actually listed it for.

BTW - I was the one who told him the market is what sets the price range and the buyer sets the final price. I think he didn't know the market - his agency is on the other side of the town. At this time of the year, I doubt it will get a lot more showings. If I could get out of the contract, I would.

Also, for some reason, my listing is no longer on your site.
0 votes Thank Flag Link Fri Aug 27, 2010
In the market we are in today, it takes agressive marketing, proper staging and good pricing to sell homes. Proper placement of your listing through internet marketing and other venues will expose your home to the most potential buyers. Proven marketing formulas will improve your success in selling your home in this difficult market. Visit http://teresabutler.com for more information about selling a home in today's market.
Web Reference: http://teresabutler.com
0 votes Thank Flag Link Fri Aug 6, 2010
Your Realtor is right about the buyers in this market...they want a steal, or the perfect house. You should not expect your Realtor to be bringing you a buyer, as he may have 4 or 5 buyers - but not looking for the type of house you have. Most people are looking on the internet so he or his company should have a strong SEO presence to be seen. The open houses should have brought you some potential buyers and he should have gotten feedback ( I use an anonymous form, and they are usually very honest) from the open house attendees and from the showings you have had. We have a showing concierge and all agents that show get an email for feedback (I send it 4 times, then I call them). If you have all those feedback responses, you will know wherein the problem lies. If not, and his indiligence at open houses - you should look around for another Realtor.
Web Reference: http://www.caroltoronto.com
0 votes Thank Flag Link Fri Aug 6, 2010
Assuming that your home is in the median range for Upper Arlington, 15-20K isn't enough to stop buyers from looking at it. Even at the lower end that's not a huge increase over prices in UA. It would be more likely that you would get lookers but no offers. It could be that it's not just 15-20K over-priced but even more over-priced than that. You even mentioned that you were surprised that your agent said you should list for XXX. Did your agent support that with sales data? FYI, cost doesn't equal value so what you bought it for + what you improved does NOT = what it's worth. The sales data will determine where the value is for the home. Also, i don't know if you interviewed more than one listing agent but some agents will price up the home, knowing it's over-priced, just to get your business. Sorry, but that happens sometimes. Not saying he/she did that. Your agent might just not know the market or your house just might be an anomoly.
0 votes Thank Flag Link Fri Aug 6, 2010
Hi M-S. Personally, I don't like what I see happening. It doesn't sound like your agent is giving you the best advice. Where are all of your comps? This takes 10 minutes to do in his office and email you. Then you can see the high and low prices for a comparable home in your immediate area!

It sounds like you bought this home to fix and flip. Did you buy the home from this agent, too? If you're buying to flip, you need to be extremely careful in this market, no matter where you are in the USA. If you're getting the showings, but not the offers, it means that the home is overpriced, plain and simple. That's why it's so hard now to fix/flip. You need to BUY a home 'very right' to be able to profit from it. Always remember, you make your money when you BUY your house, not when you sell it. As long as you're buying a place 'right', you'll always be able to walk away with a profit. Not true if you overpay, then need to rehab and flip. It's a dangerous game, takes time and on-hands experience, but profitable once you learn it.

Please fill me in about this particular situation.

It's also completely ridiculous and unprofessional to be late to open houses to the point where you need to show the property. What is that all about?

GOOD LUCK!

Scott Miller, Realty Associates, Boca Raton, FL
0 votes Thank Flag Link Fri Aug 6, 2010
Hi Motivated Seller, I agree with Anna, but let me add one other thing. An agents duty to their client is to do what we feel if best for the client. This could mean getting what we expect the most amount of money for the clients. But at the same time coming up with a selling price that we feel the home will sell for. While it's not an exact science most homes will have comparable to back up the price. Your Realtor can design a search for you so you can see the solds in your area. This is the information he most likely used to come up with what he thought your home would sell for. Ask him to show you the information or set up the search for you.If he says he doesn't know how, have your agent give me a call, I would be happy to show him how. One other thing, sometimes the pictures need to be retaken or updated. I would be happy to also take a look at the pictures and let you know if I think they entice me to view your home. I just need your address or mls number. You can call me or email the information.

Tammy Jackson
614-273-6435
Tammy.Jackson@RealLiving.com
0 votes Thank Flag Link Fri Aug 6, 2010
Are you saying that I should do the market research for the realtor? Why should I pay him his commission if he doesn't provide basic pricing guidance?

Again, HE set the price, not me. I was amazed that he thought it would go for that - I would have set it at least 15k, maybe 20k lower to begin with - but I relied on his expertise as an agent to make that call.

I also expected potential buyers to come through but that didn't happen - probably because it was overpriced.

What really galls me is that I invested the bucks and the time and have wasted most of the prime selling window at the wrong price. The only suggestion he gives me is to drop the price again. Duh. Is that really what I'm paying all that money for?
0 votes Thank Flag Link Thu Aug 5, 2010
Keep in mind that a home is worth what someone is willing to pay for it; it doesn’t matter what the seller needs or potential buyers can afford to spend. Market conditions do matter--review recently sold similar properties in the immediate area and see what the data suggests as far as pricing; also review marketing strategies, make sure your exposure is maximized. Have a discussion with your agent, express all your concerns and go from there.
0 votes Thank Flag Link Thu Aug 5, 2010
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