How do you tell a seller that he is prejucially overpriced in the asking price of his property?

Asked by An Alias, Kula, HI Thu Jun 4, 2009

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Katie Minkus,…, Agent, Hanalei, HI
Thu Jun 4, 2009
Aloha! Well, you've hit upon one of the biggest problems we have as agents in today's market, and especially in Hawaii. Many, many, many of our sellers simply don't "need" to sell and they can afford to sit around with their house on the market until someone falls in love with it and agrees to pay the price they want, despite market conditions that would typically indicate something different! From a psychological perspective what we see a lot is that sellers are just as in love with their Hawaii homes as are buyers in love with buying in Hawaii - buying and owning a home in Hawaii often represents a "dream" for people. For sellers, it can often represent a time in their life when they "made it" financially such that they could afford to buy a home here, and many are reluctant to give up that dream or that feeling of accomplishment.

I've found the best thing to do is present sold comparable properties along with a good explanation of why as the buyer you are offering less to buy the house than the seller wants. If the seller and the seller's agent refuse to work with you to reach an agreement, the best advice I can give you is simply move on to the next property. If you are completely in love with a property and the seller refuses to budge on price, your only option may be to pay the asking price, if you want the property that badly. Welcome to Hawaii. I realize this may not be the answer you are seeking, but it's one based on the reality of our market and our community out here in the middle of the pacific ocean. Welcome to Paradise!! Warm aloha, Katie Minkus, R(B) Broker-in-Charge. Hawaii Life Real Estate Services, LLC. katie@katieminkus.com
0 votes
Frank Diaz, Agent, Honolulu, HI
Thu Jun 4, 2009
Make an offer at the right price. If and when the sale is completed, that was the correct price.

Aloha,
Frank
Web Reference:  http://www.hawaiihome.biz/
0 votes
Glen Mitchell, Agent, Half Moon Bay, CA
Thu Jun 4, 2009
He may already know it. Not all sellers are realistic or in a hurry to sell. Vacant land often sits with a for sale sign on it for years at high prices. It doesn't cost much to list it and if someone really likes it why not see if you can get any bites. Your seller may think he has something special and unique thats worth the price. It's interesting enough that it has you interested. Do like Sean says below and present an offer along with some comps from your agent that show your offer is fair.

Glen
Web Reference:  http://www.maui4rent.com
0 votes
Grace Hanamo…, Agent, Cupertino, CA
Thu Jun 4, 2009
Hello An Alias and thanks for your email.

Unfortunately, much as you'd like to, advising the seller regarding prices does not fall within the purview or jurisdiction of the buyer or the buyer's agent. This job falls to the seller's own real estate professionals--the listing agent or the appraiser. In fact, I might add that attempting to lecture the seller on the appropriate price of his home is likely to polarize the seller against the buyer rather than engender any "good feelings" toward you as a potential buyer.

So, although you'd like to tell the seller the price you feel the home should be priced at, it's best to leave this in the hands of the listing agent. In the meantime, keep an eye on the home. If there are not any buyers at the owner's price, he or she is likely to reduce the price over time, and, if the price is truly as you believe it should be, it will eventually come down to the price you're willing to pay for the home. Allowing the market (rather than the buyer) to determine the house price is, in the vernacular of the islands (and as members of my family would say) "mo' betta."

Good luck and happy house hunting!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
0 votes
Sean Dawes, , Philadelphia, PA
Thu Jun 4, 2009
If his home is overpriced and if you want to make an offer just provide reasoning for doing so.
Web Reference:  http://www.SeanDawes.com
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