Many sellers in the Beaverton,
Oregon, real estate market as
well as other places around the country, always want the most from the
sale of
their home. Heck, when I sold my home, I wanted the most
from it also, but that
didn’t mean I could be unrealistic. (That is if I didn’t want to lose
even more
money.)
In today’s Beaverton, Oregon, real estate market, there are more homes than buyers. The end of the tax credit has caused many buyers to stop looking and left many sellers holding a for sale sign in their front yard that is collecting dust.
But, homes are still selling, just not the ones that weren’t priced right. You see, most people interview more than one agent. They listen to all the information and make their decision on one of a few things. Could be an emotional decision, could be a financial decision, or it could be a combination of both.
If you have an agent that comes to your house, like me, you would get the truth. I try to make an emotional connection, but I also understand that if I offend a buyer with what I tell them their house is worth, no amount of emotional attachment I could build will get me the listing. (Unless the seller is prepared for it, even if it offends them.)
Now, if there is an agent that comes in and says that you are the greatest person in the world, you have the best house in the world, and really makes that emotional connection then tells you a price that is $35,000 more than any other agent told you it was worth, you may just go with that because you were prepared for worse, but were really hoping for that amount.
There is one problem though. That agent is what we call in the business “buying your listing”. I prefer to call it costing you money and lots of it.
If you had a home in the Beaverton, Oregon real estate market that was worth $300,000 and that is what it would sell for today and another agent told you it could sell for $340,000 you might be tempted to use them. Let’s look at the facts, they can say that it is worth that, but do they have the comps to support that or are they just telling you what you want to hear to get the listing and then go for price reductions later?
Here is the problem, if you list with them today at $340,000 and the home is worth only $300,000, the home will sit on the market, you will continue to do price reductions until you find a buyer. As you approach the $300,000 mark, some six months later, just as the listing is about to expire, that 20% per year reduction in housing prices in the Beaverton, Oregon real estate market has now taken your home to a value of $260,000 a $40,000 loss just to sell it at the new market value.
So, don’t take their word for it, ask for the comps on your home. Are they really comparable or are they homes that sold 6 months ago, 3 miles away? Don’t let your Beaverton, Oregon Real Estate listing be bought by an agent that is just using your home to get sign calls. Hire an agent that actually wants to help you sell it quickly and for the most amount of money.
Follow this link to get a no obligation “Competitive Market Analysis” done on your home and find out how much it is really worth. Remember you control the condition and a good CMA will give you the middle number of what your home is worth. Is your agent willing to tell you what you need to do to get more? I WILL, CALL ME.
Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
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Todd, no better info for sellers. I made a huge mistake recently, I agreed to co list a home with someone in my office. I trusted, didn't go look, then when I did go to check on the home I had a melt down. I have told the agent I strongly disagree with the price, and no longer want to co list the home.
An overpriced home doesn't sell. Point blank. Some agents buy listings, some agents just don't have a clue.
Great advice....I tell folks they have to take advantage of that first 3 wks of the bulk of activity/buyer traffic
This is such a well written blog post I'm going to request it be a feature! Great points about talking to sellers and what some agents will do to get the listing.
Kellie
Denver CO
Buying listings has been a problem for Realtors® since the second commission was paid, but it's a bigger problem for sellers who tend to believe in that high price once they've heard it. It's a lot like a second doctor's opinion. Sometimes you need a third or a fourth until you have it sorted out.
The good thing for sellers is that even if a property is priced too low, if marketed right, it will probably sell for more. That's two things. It will sell and it will sell for more.
Todd,
This is excellent advice in all markets!
Bill
Great advice that applies in all markets. If you overprice now, you will have to take a bigger reduction later if the markets continue to decline. And with the entrance of the tidalwave of foreclosures that are on the horizon, prices are likely to take a beating...at least in my market.
Todd -
This pitch is straight over the plate.
If you have 3-4 years of inventory (as we do here for homes over $300,000 located in outlying areas), it is clear that over the next 30 days only one listing out of 40 will sell. Over the next six months only one out of six or seven will sell.
Any seller who goes with an agent who is "buying the listing" is just setting themselves up for a series of price reductions, lost time and, worse yet, failure.
The numbers are the numbers. We don't make them up...and neither do appraisers.
Go with the agent who will market your home the best.
I have been explaining the term "buying the listing" a lot lately. Hopefully, more and more sellers will catch on to what these guys are doing and finally, get with the program.
This is what so many folks do not understand. I have heard too many times, "We can always come down later." Great stuff.
Cal
Great post Todd. Very true. I think this is worth re-blogging.
Todd I don't think this is unique to your area. I fight with sellers all the time about this. Like getting blood from a stone.
Sometimes you can knock a seller on the right price over and over and until they see that it isn't selling at their price that they realize you are right. Then they are really mad when they have to lower it even more because the market has slipped that much more, chasing the market has never worked.
I have seen several that wouldn't listen and 2 years later are priced way below what I could have netted them back then.
Since manipulating the comps is so easy, sellers need to take care to actually read the document. They should check that the houses really are comparable and then look to see if the adjustments are realistic.
It's unfortunate that some homeowners will believe those slimy agents when they say they can "get more" for a house than any other agent in the area.
Hi Todd -
Absolutely correct! I always run the numbers and as gently as possible and without insulting my sellers I talk frankly with them the CMA on their home. If they're motivated to sell they listen if not you're right they may go with a Realtor that will tell them what they want to hear. I've actually had sellers call me up months after going with someone that told them what they wanted to hear and say John it's still sitting on the market will you sell our home. I believe being honest and upfront pays off for all concerned.
Make it a great Sunday.
Best regards from the Q
John McCormack
Todd, I do not collect listings, I sell them. Have I taken an overpriced listing? Yes, and have learned my lesson...I'll leave that to others who do not mind losing money and resources.
Great advice... I've seen this happen so many times and chasing the price down is not a happy ride for the sellers. Often is the case lowering the price is perceived by potential buyers as, "Something must be wrong with that home. They keep lowering the price."
This is the hardest thing for folks to understand. Price it right, not high because people are going to offer less anyway. Being overpriced just costs the seller money.
Cal
The key is being able to get your sellers to understand and believe your comps. . . if they aren't willing to budge, walk away.
Great advice Todd, I really agree that pricing right at first gets the best and highest offers. I tell folks the price they get is a function of the marketing they choose and pricing strategy is a marketing function.
Excellent point and is happening in most markets, maybe not to the tune of 20%. Chasing the market down is one of the hazards of those realtors that buy your listing. However that gaent is going to get the commission on a sale and we are not? I have tossed and turned on this one a lot and have to say that I need to do what is needed to get listings in this market and whatever it takes it takes.
Dear Todd,
Your statement - That agent is what we call in the business “buying your listing”. I prefer to call it costing you money and lots of it.- leads to the best advice to give a Seller. But - just as in your short sale blog - the person has to have an overview "vision" to understand the bigger picture. They are lucky to have you!
Have a happy day -
Lynn