M, Real Estate Pro in 33905

Why do "Professional Real Estate Agents" in Lancaster County continue to list properties far above market value as they ARE NOT SELLING?

Asked by M, 33905 Thu Jun 24, 2010

There were 89 new listings in Lancaster County from 6/15/09 through 6/15/10 in the $500,000 to $2,000,000 price range. There were 20 sales in that same time frame and price range. The average list price is $767,053 and the average sold price in that time/price range is $706,316. The average COST PER SQ FT (including the land) is $234.80. Additionally, only three of those sales exceeded $750,000. However, most of the listings over the last 12 month exceed $300.00 per square foot. In many cases they exceed $400.00 per sq ft and in some cases $500.00 per sq ft? And, those properties are not selling. I lived in White Stone and bought and sold a property. I am in the market to move back and buy. There have been two waterfront properties I wanted to buy, but they were price at $215.00 /- they sold before I could get an offer to the owner. A case in point was a beautiful property near Windmill Point, 3 arces sold for $1,300,000 or $212.00 per sq ft.

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Why do professional real estate agents list properties above market value? Because they need to have properties for sale....it attracts buyers.... and the agents, if they can't sell their listing, can maybe sell you something else.

The alternative is for agents to say "well, then I am not listing your property because it won't sell" and then the agent will sell nothing. What would you do?

Sadly, many owners are in denial about pricing. Sometimes it's easier to wait until you have an offer to try to get the owners to come down on their price.

So, find a buyers agent you like, go see the properties you'd buy if you could get them for a reasonable price, and present offers. Once enough properties start to sell.
0 votes Thank Flag Link Thu Jun 24, 2010
Mike:

The "Professional Real Estae Agents" are taking instructions from the sellers- in order to get the listing. Many sellers refuse to face reality, in hopes of finding the perfect buyer that is willing to pay the sellers price. Some properties will eventually atract that ideal "seller's-buyer".

Not all buyers break down $/SF..., comps, market value, etc.
1 vote Thank Flag Link Thu Jun 24, 2010
unfortanately alot of people owe more than their houses are currently worth. It is worth it for a realtor to take a listing if it is close to market value or if they need to make a tru effort prior to the bank considering a short sale. If it is not on the makret and cant sell. i find myself determining often whether or not to take a listing, you always hate to turn a listing down but if it is priced way over value and no chance at a short sale, sometimes i have to decline.

i had wrote a blog about taking listings that were overpriced a couple of months ago which i constantly update if you want to check it out
1 vote Thank Flag Link Thu Jun 24, 2010
Agents take high priced listings in hopes of attracting buyers. I've taken a couple in the past, and it rarely ends well.
0 votes Thank Flag Link Tue Oct 1, 2013
Mike, I would imagine the owners of those properties would take a position that is quite diffeent from yours. They may say, "Real buyers don't whine and cry about the listed price, they submit offers to get the conversation stated." Such a strategy (higher price) could screen the tire-kickers and weak buyers from the serious and capable buyers.
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As you may know, Mike, real estate professional are egaged in a service business. We neither buy nor sell homes. Only the home owner can sell a house. We, offer data, statistics and best business practices and allow the home owner to make informed decisions.
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What do you think the D.O.J. would do if all the Professional Real Estate Agents collectively decided they would only submit listings that conform to well defined value calculations or market analysis (you know, like the fiat appraisals imposed by the 'too big to fails). Those folks, like yourself, who want to beleive the Professional Real Estate Agent is influencing the market will be up in arms, shouting at the top of your voices..."Price fixing, Price fixing.'
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The process, as it exists today,works very well. Home owners establish the price they want to list at, and those who are in this service business, do our best to acheive their goals. Very often, adjustments are made along the way. Professinal Real Estate Agents work at the will of those we represent, those who have hired us. Sometimes this involves a seller with exceptional expections...or a buyer with exceptional expectations. Both, as the outcome of THEIR decisions become obvious, always look to blame the agent for the results.
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That Mike, is the world in which we live. The screening mechanism in place appears to be working, but you do have a choice.
If you are a serious buyer, contact a Lancaster County real estate professional.......
AND PREPARE AN OFFER.
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As others have clearly explained, the list price is about 'something to talk about.' Without a list price, what would you do? The seller has said, "Hello," now the rest is up to you.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
0 votes Thank Flag Link Tue Oct 1, 2013
The question was offered during the 'downturn'. So, your answer is not appropriate for the time in which the question was posed. However, Your answer reminds me of my dealings with various real estate agents in Florida - direct to the point of being rude, opinionated, uniformed and not relevant to the question. Virginia realtors work for the seller or the buyer. Florida agents work for the transaction. Florida agents are not bound by fiduciary duty...and it shows.
Flag Fri Oct 4, 2013
Good Question. There are some houses out there priced way to high. As usually a fault of Seller wanting to try and get that much money or the agent telling them this is what it is worth. Waterfront properties will continue to hold their value, considering their location. I have even see people pay top dollar for a tear down home on a beautiful waterfront parcel, just to tear down the house. LOCATION! LOCATION! LOCATION! And in our market here for sure, it is the location. The luxury of being an hour from your 1st home, or being 10 minutes to town. Or the privacy of further up the county.
I do not ever intend on "buying" my listings. Meaning I give a fair market analysis on what your current home would sell for. I give a range. But sometimes at the end of the day, your properly is worth what someone else is willing to spend. If I can't sell your home, then it is no good for me or the seller.
There are still great deals at this time in our area. And compared to other parts of the Chesapeake Bay, I feel we have great prices in our areas!
Hope this helps and good luck on your searches!
David
0 votes Thank Flag Link Tue Oct 1, 2013
Thank you David. Great answer from someone I consider to be one of the best brokers in the area.
Flag Fri Oct 4, 2013
I agree that some listings are priced too high. Many, however, are not. I suggest you find what you like and make an offer. In February I closed a property for $1,000,000 that started out at $1,650,000; then it was reduced to $1,350,000. The buyers made their offer and it was accepted. Also remember that most of those homes in that price range were custom built homes with top quality construction, every attention to detail and finish. You also have to factor the amenities of the land, the location, the water depth, the views; all of these help determine the price. Houses out here are not cookie cutter homes and are mostly all unique in some fashion. Good luck with your endeavor.
0 votes Thank Flag Link Fri Apr 20, 2012
Hi Mike,

There are many reasons why homes are priced over the current market value:
1) The market has fallen faster than prices have had time to adjust.
2) Buyer are upside down in their homes. (They owe more than home is worth).
3) They buyer are still living in the past housing market.

You just need to wait for the right house at the right price. It always a case of Time verse Money. You don't want to over spend the money. So you have to spend the time and wait for your right priced home.

Good Luck.
0 votes Thank Flag Link Thu Jun 24, 2010
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