Home Selling in Norwich>Question Details

Victoria Sch…, Real Estate Pro in Norwich, CT

I have some unique properties, the owners think they are worth more than a market analysis supports. How do?

Asked by Victoria Schroeder, Norwich, CT Thu Apr 9, 2009

you tell a client they need to rethink the price they have fixed on their property without loosing them as a client?

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19
I Might have quit if I we your agent also Rockin, I hate know-it-all-high-demand sellers......; )
1 vote Thank Flag Link Fri Apr 10, 2009
Just as an FYI, one property is @ 250 years old, cluttered and smelly and of course, will only be wanted by someone looking for that age.
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Yeah, well, that’s unique all right!
0 votes Thank Flag Link Mon Apr 13, 2009
Thanks everyone, you all have excellent suggestions. I know the personalities of the sellers are going to play a big part in which method I use. Just as an FYI, one property is @ 250 years old, cluttered and smelly and of course, will only be wanted by someone looking for that age. The current owners think it's worth about twice what I see. Oh well!
0 votes Thank Flag Link Mon Apr 13, 2009
You might also back into the price by valuing the land, and then the square footage of the home. If it's an older home with no upgrades caluculate the sq ft price by what it would cost to build a builder's spec home and remind them the price would buy a brand new home.
0 votes Thank Flag Link Sat Apr 11, 2009
Victoria, you may have already received this answer but just in case. I would take your clients to visit their competitio, schedule a preview and maybe seeing the competition with their own eyes may help them change their minds.. Good luck
0 votes Thank Flag Link Fri Apr 10, 2009
Well, its hard to do a 'real' market analysis on a truely 'unique' property, so I would question how sure you are about the market price.

But if it was me, I would tell them I think its THIS price, they think its THAT price, I'm confident about my price, but they are the owners and at the end of the day are the ones to set the list price. I would agree to set their list price, but maybe with predetermined dates to lower the asking price if no offers come in.

If you think they are too difficult, it could be a waste of time and you might consider giving the listing to another agent (possibly for a commission).
0 votes Thank Flag Link Fri Apr 10, 2009
Suuuuure, Dp2 :)

No really, I know they refer to it differently in different locals. :)
0 votes Thank Flag Link Fri Apr 10, 2009
Good covering you tracks Dp2, we wont hold it against you.
0 votes Thank Flag Link Fri Apr 10, 2009
Initially, I thought it was the Certificate of Occupancy, but I couldn't figure out what the 's' stood for. I would have abbreviated it COO or CoO. ;)
0 votes Thank Flag Link Fri Apr 10, 2009
I know you're going to say "D'oh!". Certificate of Occupancy.
0 votes Thank Flag Link Fri Apr 10, 2009
"heated basement that doesn’t have c.o.s"

JR, what's c. o. s?
0 votes Thank Flag Link Fri Apr 10, 2009
, I hate know-it-all-high-demand sellers......; )
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Obviously, so did my agent. lol
0 votes Thank Flag Link Fri Apr 10, 2009
Unfortunately, Rockin’, it doesn’t always go that way. Sometimes an agent has to weigh the odds of someone with the same taste as the owner coming along, or a lot of cash who won’t want an appraisal. We have a lot of homes like yours in my selling area, overbuilt for the neighborhood, and they are problematic to sell and usually stay on the market a long time.

But to answer the original question, you don’t “tell” them how their home should be priced, you show them other local sales, educate them about the market, and help them to come their own conclusion. Most owners think their home is “unique”, if it truly is unique, like it’s a log cabin, then I would decide for myself if it was worth it to me to gamble that another log cabin lover was going to come along, plus want to over pay.

Many of the homes I see are “unique” for reasons that may cause trouble down the line, like a fully finished and heated basement that doesn’t have c.o.s and never will because it doesn’t meet code. Some are just unfinished, quirky or otherwise unusual.

What is unique about your listings?
0 votes Thank Flag Link Fri Apr 10, 2009
We had a uniniquely designed house within our subdivision. You know the kind. An overimproved house because the owners were too busy to put up with the hassle of selling, but yet wanted a much better house.
Our agent gave up after 90 days trying to lead us about 20k lower. The only objection to the house was always the spiral staircase. Between the spiral staircase, us not wanting to drop our price 10%, and other factors that there is no need in going into at this time, he dropped us cold while we were away on vacation. We went FSBO and sold without having to drop that 10%. We also received a backup offer at even a higher price, but the buyers had agent representation. Sorry listing agents. You're not always right when dealing with unique properties.
0 votes Thank Flag Link Thu Apr 9, 2009
I agree with Don.

Another alternative to firing the client is to compromise. Agree to let your client list the property at his/her target price for 30 days, and have him/her to pay out of pocket for all of the marketing materials. Assuming that property hasn't sold in 30 days, then that seller agrees to let you list the property at its market value--this time with you paying for the marketing materials.
0 votes Thank Flag Link Thu Apr 9, 2009
I am not sure how far apart you are on price or how motivated your sellers are but if your sellers are still not realistic even after you show them deposits and solds another approach is to explain that the highest activity on a listing is in the first 10 days (you could even show them the graphs on line of other listings you have and their 'hits' or views. You could tell them you will list their home but only if they are willing to sign a Change of status right now for a price change to where you feel it should be listed, then at the end of those 10 days if there is little or no interest from buyers, they need to agree (now) that you would implement this price change. By overpricing their home, they are only helping to sell other listings.
In addition, if you have a brokers tour in your area, have paper and pen available for the agents and ask them to write down their opinion of price (no names) after they view the home. Then you can give this feedback to your sellers.
You can also customize your grid on MLS to show clients the Original List Price, New Price, date of Price Reduction and date home went under contract- showing this correlation (you can even put it into Excel and graph the results ) This may help focus them on the importance of pricing their home correctly from the start. I also keep both on line and print articles regarding what is happening in the local real estate market.
You need to decide if its worth it to take an overpriced listing. If they aren't realistic in price, or they are not really motivated to sell, they will be forever chasing the market.
0 votes Thank Flag Link Thu Apr 9, 2009
Go over your market analysis with the sellers, in detail, showing sold and expired properties. Also show them homes that are active and how many days are been on the market if they want to sell it they will go with you but you have to do your homework.
0 votes Thank Flag Link Thu Apr 9, 2009
Victoria,

Don's advise is spot on! If you don't want to seem like the bad guy, you could always tell them that when a seller wants to price their home more than 5%, 10% (or whatever number works for you) over the recommended value that you need to get your managers approval. Then tell them that the manager doesn't usually give approval because they are marketing a home priced over what the current market will support and they house will not sell.
0 votes Thank Flag Link Thu Apr 9, 2009
This is one of the jobs of a real estate agent. You are the professional.

Go over your market analysis with the sellers, in detail, showing both sold and active properties. Also take the time to show them homes that have expired unsold.

If they won't list at a price that will sell in the current market, then they are listings that you may decide not to take. You're not loosing them as a client, but rather making a business decision to not take a listing at an unsaleable price.

I turn down many listings if the sellers will not list at a price that will sell the home. It's a part of my business - I only make money when homes sell, so I cannot afford to invest the time and money needed to market a home if it is not saleable.
0 votes Thank Flag Link Thu Apr 9, 2009
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