Edyta Gryc -…, Real Estate Pro in Hoffman Estates, IL

Why do you think some owners (sellers) tend to overvalue their property?

Asked by Edyta Gryc - Broker Associate, Hoffman Estates, IL Tue Feb 15, 2011

How about -"attachment bias," which is thinking that your assets or belongings are inherently more valuable than they actually are, just because they happen to be yours. I've just read an article where the owner could not deal with (who would?) the fact that his property declined about $500K over the last 4 years(to be exact -he disputed the appraisal) What are your opinions? How do you challenge the sellers that believe their property is worth more than in reality is?

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I ask them to pretend it is NOT their home and they want to make an offer on it. I take them through the comps to come up with a range of offer prices - and if necessary - we go to see some of the competition.

The emotion attached to owning a home is powerful. If every Realtor had to buy or sell a home once a year to be able to empathize with the buyers and sellers - we would all be a better bunch.

If there is no reasoning with the seller - I know it is time to walk away from the listing.

Great Question!

Good Luck!

Gerry Dunn
Associate Broker
Serving Maryland, D.C and Northern Virginia
2 votes Thank Flag Link Fri Mar 4, 2011
Edyta,

This has been so common but we are recently seeing more sellers accepting the terms of the current market conditions.

With sellers that are in "hard core" denial and refuse to accept the market as it is....agents should refuse to list the property. After all, why spend your advertising dollars on a listing that doesn't "stand a snowballs chance.........." of selling.

It is a difficult position for an agent to take but, if enough agents just refuse to deal with this nonsense, just possibly the message will be heard.

My advice, simply "pass!"

Bill
1 vote Thank Flag Link Tue Feb 15, 2011
Clearly, they're not motivated enough to sell at that moment.

I agree with Alma that having them walk the comps will help to wake up some of them, but others are so delusional that they'll continue to hold out until they cancel the listing, or lose their property due to foreclosure.

Wholesale offers also work.
1 vote Thank Flag Link Tue Feb 15, 2011
I think the easiest way is to recommend to the Seller that they select a licensed appraiser that ideally lives in the same neighborhood and pay for a full appraisal. It will be a wake up call.

Also you may want to take the client to tour the competition... And... sometimes if you take a video of the house it may lift the cloud from the seller's eyes so they can see what they really have there!

Good luck!
1 vote Thank Flag Link Tue Feb 15, 2011
bring in a "low ball" offer :)
1 vote Thank Flag Link Tue Feb 15, 2011
Show them the comps. The market statistics should eventually talk to them and they will see the truth. Buyers are only willing to pay so much for a home and the sellers should see what that amount is from the market's sales data.

If the home isn't priced correctly, it will never sell.

Best of luck!
Web Reference: http://www.jameswehner.com
0 votes Thank Flag Link Thu Apr 7, 2011
I believe this is because most sellers are not really aware of the recent comps (closed sales) in their neighborhood. Since we have been in a declining market most properties are worth less than the seller thinks. Also many sellers have over improved their property and do not understand that the appraiser will not give much towards upgrades on an appraisal.
0 votes Thank Flag Link Sun Apr 3, 2011
The property loss is not easy, buying or selling a home is emotional and emotion always trumps reason
0 votes Thank Flag Link Fri Mar 4, 2011
Most sellers love their houses that are why their properties overprice.
0 votes Thank Flag Link Thu Feb 17, 2011
Some?

Alot has to do with denial and a lack of understanding.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Tue Feb 15, 2011
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