Home Selling in 11742>Question Details

Dawn Buoncon…, Home Seller in Holtsville, NY

Is it me or are realtors now driving the prices down further to push sales?

Asked by Dawn Buonconsiglio, Holtsville, NY Mon Jan 28, 2008

I see the realtors come in and they have a listing of other houses recently sold, all average 340,000 for 3 bedrooms. They don't even look at the house interior, some say it doesn't matter in this market and then they try to convince me to list my 4 -5 bedroom 2100 sq ft house for 239,000, "but be ready to sell at 325,000. What's this all about?

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This is a great question. Having been in this business since 1974, I can tell you Real Estate agents don't drive prices anywhere. The market does the driving. Good agents will do market research, and you are right, part of that market research should involve looking at your home.

Any agent who wants to price your home without looking at it should be removed from your short list asap.

Market research will determine where you should price your home. The numbers don't lie.

Once again, market research will tell you what the percentage of listing price to selling price is in your area for your type home. In the Hilton Head Island, SC area where I am, last year it was 94% of the asking price was what the selling price was. In 2006, it was 96%.

Tell your agents to do their homework and give you good intel so you can make an intelligent decision on selling your home. Good luck.

Bill Brannon, Hilton Head Island, SC
2 votes Thank Flag Link Tue Jan 29, 2008
The Realtors should be bringing in recent sales (no more than 3 months) in the same zip code and same school district within a mile circumference of your house.

If the houses are not exactly alike (and no two are), the Realtor should be making adjustments so they are comparable, just as an appraiser would.

No matter how wonderful your house is, you are a prisoner of your area and recent sales. No matter how much you get a buyer to pay for the house, if it does not appraise, the buyer will not get the mortgage.
Web Reference: http://GailGladstone.com
2 votes Thank Flag Link Mon Jan 28, 2008
Angelo,
Well we were all acused of driving prices up by encouraging overbiddign so we might as well be guilty for calling the party off and giving all of us a pay cut! Actually I think in some areas Realtor/Licensees just DON'T KNOW where prices are going. Back in August before the credit crunch, this is a mere 4 months back, I could safely give you a price point range within 5%. Today? With the flood of REO's, Short-Sales out there, who knows, 10-30%? I sold a home six blocks from one I have on the market today. The sold comp wasa 1750 square feet, single level, cul-de-sac, staged to the tees, I now have a property, 2330 sqft, stunning traditional on a cul-de-sac, custom features, listed at what the comp sold for 4 months ago and I'm advising the client to reduce it $50,000 to generate an offer! No--I don't think we are driving prices down we just don't know where they are at! Even the REO agents are butting heads over price. One lists a model at $389,000 ($150,000 below what it sold for 2 years ago) and another REO agent lists the same model for $289,000 arond the corner. Go figure! If you have an area where 4-sale signs liter the landscape chances are price is going to be the sold determinate for a sale. Time will tell. I'll make the bold statement that prices will either go down, remain the same or go up. Edgy huh!?
1 vote Thank Flag Link Mon Jan 28, 2008
Hi Angelo,

I don't feel that agents are driving the prices down further to push sales per say. Many market places are saturated with listings and have much more "supply" than "demand". This increased competition among Sellers can cause many price reductions to occur. This is what tends to drive the prices down.

On the other hand, an agent should never give you a solid opinion of market value without visually inspecting your home first. They may be able to estimate based on some information they gather from you verbally, but cannot come up with an accurate answer until they see things like location, condition, upgrades, etc.

It is possible that a 3 bedroom home in pristine condition could sell for more than a 4-5 bedroom home that needs a lot of work. Location can play a key factor as well. Your agent should be showing you homes that are as close to yours in features and location as possible, making adjustments for differences along the way.

My first suggestion to you is to interview more than one real estate professional and preferably from different companies. There are so many variables when it comes to an agent's experience and work ethic. You should ask them to explain and demonstrate how they came up with their suggested price by showing you the comparable sales that they come up with. You should also ask them about what services they will provide. Especially, be sure that they are up to date with internet marketing. Although most Sellers still want print advertising, many Buyers begin their search on the internet. Take a look at some of the other homes they have listed so you can see the kind of job they do.

In most areas today, strategic pricing is important. It is not really a good time to "test the waters" with a high price. It will only waste your time and money as well as your Realtor's. Go with what the statistics show. The numbers don't lie. Also, be aware that homes are generally staying on the market longer now, so try to be patient.

Once you've chosen someone you are comfortable with, I feel that if you price it right, make it easy to show, and offer a competitive commission, you'll be successful in selling your home.

I belong to Leading Real Estate Companies of the World and if you'd like me to refer you to a reputable agent in your area, I'd be happy to. Fell free to contact me at JanetLevy@JanetLevy.com or at (609) 693-9126 Ext. 18. I wish you the best of luck with your home sale!

Janet Levy-Minetti
Broker-Salesperson/Office Manager
Crossroads Realty/Lacey Office
http://www.JanetLevy.com
JanetLevy@JanetLevy.com
1 vote Thank Flag Link Mon Jan 28, 2008
Hi Angelo, maybe you ought to take Hammerhead's advice and list it yourself. List it real high so you can drive prices back up, LOL!

Seriously Angelo, I don't know where you're finding these realtors that don't even look at your interior and tell you how much your house is going to sell for. Realtors definitely bring a list of all the sold homes with them, but then they should educate you about what the market is like, and then YOU should figure out where to list your house using that data. We all have the same data. By "all" I mean every realtor, and BUYER, so it would behoove you to study it before you put a price on your home. I would love to help you out but I have a feeling you are disingenuous.
0 votes Thank Flag Link Tue Jul 27, 2010
Why not list your home yourself. Cut the realtors 4 or 5% out of the deal. 4500,000 home sells for $450,00, brilliant! No realtor. No commission.

I understand 85% of home sales are generated by interest first developed by a listing with pictures on the internet. Realtors generate just 15% of home sales direct. Show the house yourself. Who needs these commission earning, in many cases amateur people at all. Yeah they run an open house for the gang of other in town realtors who can eat bagles and scoff at your decor whilst yiur at work, but your home just one of the hundreds of products that they can choose to try to sell for a fat commission however to you it is your largest asset
0 votes Thank Flag Link Fri May 28, 2010
There are no sales yet thousands of house for sale. HREO.com (Hamptons Real Estate Online) hit a whopping 6009 listings today, for the first ever. Some are duplicates from multiple listings, however as an indictor it is useful.

Realtors cannot earn a living when only a single house a month is selling in Southampton, or East Hampton, or Sag Harbor. And this is about the rate at which they are selling. Instead of the more typical twenty five a month.

Basically the Hampton's market has stopped and there will have to be a 35% downward correction, as seen in FL and CA among others, in order to get the market moving again. Keep in mind this is a correction from a circa 2004 purchase, not the asking.
0 votes Thank Flag Link Sun Mar 16, 2008
The listing price should be determined by comps of similar homes in the same area. Ask to see the comps and have the agent explain them to you. Offers are made by buyers and if the agent is a "sub-agent", he/she should be working to get the best offer. If the agent with the buyer is a buyers broker, he/she is working to get the best price for his/her client, not you.
0 votes Thank Flag Link Sun Mar 2, 2008
Huumm?? some thing is fishy there! It is true the market is soft for sellers, and there is downward pressure on home prices. You need to live in the today not the market 1-2 years ago. You are right realtors should walk your home inch by inch and take a look at the interior becouse we all know a home with a fresh up to date look and that new home smell will win out evey time, if they fall in love with it the will buy no matter the price!! good luck !! send me a email and let me know how you did! brian.gerrity@coldwellbanker.com
0 votes Thank Flag Link Mon Jan 28, 2008
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