Posts Tagged ‘lots of for sale signs by same realtor isn’t good for home sellers’

“Buying a Listing”, what sellers need to know about this practice

Monday, November 12th, 2012

It’s really common for a potential home seller to feel their home is worth more than it really is for a number of reasons:

  • Sentimental value
  • Work/money they have put into the home that the market, frankly, doesn’t care about
  • What they paid for it before the market slid off a cliff
  • Features they feel set it apart that are actually niche features and turn offs to potential buyers¬†(for instance, pools in Portland are not widely considered a bonus, the majority of buyers consider them a problem)
  • Perceived features that are common with competing homes in the area
  • And of course, every seller wants to get as much for their home as possible, often, without regard for the reality of the current market

There are a number of other reasons, but these are the ones I see the most often.

I myself generally will not take an over-priced listing in most circumstances (there are exceptions from time to time) and the reason why is simple. If I list your home for $450,000 when I know it should be listed at $400,000 to get the attention of buyers and generate an offer, what’s going to happen to our relationship over the course of that homes time on the market? It’s going to decline, you, the seller, are going to think I stink as an agent. Eventually you’ll fire me and I’ll certainly never get a referral from you. Where as if I simply decline to take the listing, you (briefly!) wouldn’t exactly be thrilled with me of course and may even respect me for the honesty, but you wouldn’t have built up weeks or months worth of negative feelings towards me which certainly destroys any chance I would have of doing business with you in the future and again, would guarantee I would never receive a referral from you.