Besides pricing on a home, there are many other factors that come in to play. The three main factors are, Pricing,Property Condition, and Promotion. An overpriced property just won't sell, it doesn't really matter how long you keep it on the market. If it is overpriced, it will just sit there longer. Besides that, it won't appraise either! Buyers are much more educated today and can sense it immediately. A property that isn't in its best condition yields less money, and takes longer to sell,period. The home must be in the best condition inside as well as outside. in other words, the home must be properly staged. Staging doesn't necessarily mean you have to spend alot of money either. The last thing that most affects selling is Promotion. For one thing, 85% or better of home buyers BEGIN their search on the internet. A great Realtor MUST be aggressively placing the home on many internet sites so that it is easily found by buyers. Print advertising is a very small part of selling a home. INTERNET is where it is at for selling as well as buying.

Sun May 11 2008, 10:57

Buyers will skip over you for 12 months if you are overpriced. Was this a joke or do you really believe what you wrote? Why would I waste my time with you if you are unrealistic? Sellers who set unrealistic prices are usualy unrealistic in their other expectations. I am a buyer, and I pass.

Sat May 10 2008, 11:12

Magnus Roper,
Net listings are illegal in many states.
Deborah

Thu May 8 2008, 08:05

In the market we are currently experiencing (more supply then demand) only the homes that are priced aggressively are selling. If and agent is implementing all the tools available to expose the property to potential Buyers and there is still no activity, that means you generally have a price issue.

Thu May 8 2008, 08:03

In a declining market a quick sale is in the clients best interest. Staying the course only gives someone else the opportunity to give away your equity. When you are in a declining market, the smart ones jump the market and go. The winner in a declining market is the first one out. The market it a very powerful force, with a great negotiator in your corner you should not be afraid to price the property agressively.

Thu May 8 2008, 07:59

When a property is overpriced, it almost always leads to low offers. Realtors are concerned with the highest and best price for their sellers.

I disagree that price drops won't help if the condition of the home isn't good. We have buyers lining up to buy bank owned properties where the carpets and faucets have been removed……because it is a good price.

For a seller to maximize price, yes, the property should be tidy, clean, and staged. But, if the seller is unwilling or unable to do that, price can offset any deficiencies or shortcomings of the property. In the best interests of the seller to gain the highest price, attention to the presentation will support that goal.

An overpriced property will eventually net the seller less than going to market with an aggressive price. I work in a market that is definitely a buyers market, but we are not as suppressed as other areas. In this buyers market, many houses stay on the market a long period of time. Meanwhile, others fly off the market with multiple offers in a short few weeks. Even in a buyers market, there can be a bid war, with offers over list price.

If market feedback warrants a price adjustment, sooner will net you a better price than later. I don’t know if your property warrants a price adjustment or not. I do know that it is critical to listen to the market when it speaks.

Thu May 8 2008, 07:49

ALL SELLERS DO NOT ALWAYS HAVE "MARKET TIME" JOB RELOCATION WILL FORCE A SELLER NOT TO BE ABLE TO HAVE TO HOMES. REALTORS DO NOT SET THE PRICE. THE BUYERS SET MARKET VALUE. GREAT HOMES, PRICED RIGHT SHOULD NOT TAKE 5 MONTHS IN ANY AREA PERIOD. SELLERS HAVE TO APPROVE ALL PRICE REDUCTIONS SO THEY CAN WAIT THE 5 MONTHS IF THEY LIKE, ITS SELLERS THAT ARE IMPATIENT NOT AGENTS. THANKS

Thu May 8 2008, 07:38

I agree.... A seasoned agent won't take an over priced home listing and will have the expertise and knowledge to price a home correctly the first time. When times are tough and business is slow some agents may tend to overinflate a value to obtain a listing. Look for a professional that has a steady record of homes sales, good references, and a proven sales history!

Thu May 8 2008, 07:38

The price of a home should never be reduced within the first 60 days of a listing unless the Seller's circumstances change, or unless the house was priced incorrectly to begin

Thu May 8 2008, 07:36

I agree that's certainly not in the best interest of the seller, But in order to judge that you need to know all the facts. Is the seller in a financial position that makes it important to sell quick? I can tell you this, I don't have many clients ready to take my pricing advice until it's too late. All the price drops in the world won't help if the condition of the home isn't good and it doesn't show well. I advise my clients to have a staging consultation and take care of anything the home obviously needs. there's always an average time on market for a particular area. The homes priced well and staged well, sell quick and the others languish until the price is low enough-period.

Thu May 8 2008, 07:31

A quick word to Magnus Roper...your suggestion that a real estate broker can keep anything earned over a certain price is a nice idea. Unfortunately, that's called a 'Net Listing' and it's ILLEGAL in every state.

I do agree with you on one point...there are a LOT of weak agents out there who take overpriced listings just to get business. They don't invest the time to improve their skills in showing their sellers what the market is actually willing to pay.

When I go on a listing appointment, there are three possible outcomes: 1) The seller may choose to hire me. 2) The seller may choose NOT to hire me. 3) I may choose not to take the seller's listing because they're unwilling to price their home to sell. A weak agent only subscribes to the first two outcomes.

Tue May 6 2008, 19:01

I couldn't resist....Magnus Roper.....Who told you that Realtors make $3,000 on a $100,000 sale?? And where...because I am moving tomorrow then!?

One more thing, all consumers should keep in mind that being a Realtor is a very risky job as far as getting paid is concerned. Please note that we are the last to get paid in a transaction. Often times we can work 6mths, 1yr. or more on a deal and end up not getting paid! We also don't get weekly paychecks. By the time we get paid, if you calculate the hours spent, gasoline, etc. we make equivalent to a modest, middle-class workers pay. And how about the times when we are asked to reduce our commission to make a deal go through. How many people (apart from sales persons) can say that they have reduced their salary because their boss asked them to? Any consumer that has such bad things to say about Realtors should really get their license and walk a mile in our shoes. Is it any wonder that more than 50% of people who get their real estate license quit before the first year is over? It's not an easy profession and certainly not "easy money".

Tue May 6 2008, 16:57

Brock - I wish pricing and selling homes were that easy - it sure would be better for me so that I know if can cover my BMW payment - ahem - THAT being said, while there is no sure-fire guarantee on the specific timing, there is an on-going process that needs to be constantly monitored - changes in the ACTIVE, CONTINGENT, PENDING and CLOSED sales of like properties as well as the economic conditions of the area. In order to meet my clients' expectations regarding a successful sale, their price needs to be in line with market conditions as long as their property remains on the market.

A market can change dramatically over a 5 month period. While I can provide comparable sales of similar properties over a 6 month period to best determine the probability of how long a property will take to sell, conditions could change, i.e. a major employer in the local area could announce significant layoffs, mortgage lenders could change lending standards for buyers with less than 10% downpaments, four homes with similar features in the neighborhood may have just gone into foreclosure - AFTER I had completed my initial market analysis, etc.

All of these conditions have an impact on both timing and sales price, PLUS add in my clients' motivation to sell. For example, in light of market conditions changing, my client may only have 90 days of relocation benefits before he/she may be responsible for their own moving expenses - and their property which was priced in line with the market before the market changed, has now been on the market of 47 days without an offer - they don't want to pay moving expenses out of pocket and may want to get their home sold NOW.

While I agree that intelligent realtors do their market research - continuously monitoring market conditions, staying the course may very well be the worst course of action for their client.

Just some food for thought...

Sat May 3 2008, 16:08

Although I answered this question earlier, I could not let the ignorance of Magnus Roper go unnoticed. It's a shame when someone judges a whole group of people based on his/her own personal opinion of a certain few.

Fri May 2 2008, 20:56

Magnut stop being a basher you have probably met 1 or 2 Realtors and judge a whole profession.

Fri May 2 2008, 19:45

The incentive mechanism for real estate professionals is whacked. Think about it, if they sell your place at 100,000, they may make - $3,000 off the sale. If they price it at $110,000 - where you would make out incrementally by $10k, they make only an incremental $300 on the sale. The real estate professional thinks - why bother, price it lower and take the $3k, and move on. Real estate agents (who come and go as markets ebb and flow) are a dime a dozen. I've never met a 'good' real estate agent. But have met plenty with range rovers and bmw's who dance from property to property urging sellers to lower their price. A good agent would structure their compensation only after the seller has set a market price. (e.g. - price your home at $100k, then tell the broker they can keep 30% of anything they can get over this floor. That will motivate them to work the sale).

Fri May 2 2008, 19:08

Brock~
I sure there are agents out there that would do that. Together a price should be set and if you don't see any activity on the home your price is too high and you will need to evaluate it. Price your home accordingly for TODAY'S market not two years ago, if you want it to sell!

Fri May 2 2008, 08:40

When most people list their home for sale they would like to get it sold in the shortest amount of time. If the home is not getting enough showings or showings with no offers the price should be reduced. Who WANTS to have there home on the market for 5 months if it could be sold in less time for a little less?

Fri May 2 2008, 08:20