Wednesday, May 5, 2021 / by Laurie Weeks
So I was just ranting with another agent about the problems associated with sellers pricing their homes correctly and effectively. This can be so frustrating , especially in todays market. We know that this is a Sellers Market. We also know that this does not mean that Sellers can set their price higher-just because the buyers have been paying higher prices.
So I got to thinking- Sellers have to understand the Psychology behind pricing and buyer offers. Here are two scenarios for the same property... this was on an actual listing, which still has not sold.
The seller chose a listing price of $520k. They were given current market statistics, showing homes in local area selling for under $500K. They stood their ground, after 3 open houses, no offers came thru and traffic was below average. The typical open house has a line of buyers waiting to get into the house with multiple offers after the first open house. This causes a Bidding War with the home selling at way above asking price.
The agent suggested adjusting the asking price , but again the sellers refuses . After a private showing, they received an offer of $500k. The Seller countered at $510K. The buyers rescinded the offer. The
agent once again suggested price reduction and again the Seller declined.
Sellers have to know who sets the price of their home. It is not them or the Realtor. It is the consumer! Many Sellers are of the understanding that since homes are selling for as much as $50k over asking price, I will price it above asking price because it will sell higher in the end. Wrong!! While in the end, the selling price may be the same as the house being listed for $500K and selling for $30-$40 K over asking- but here is the problem... You will not attract many buyers to come view the home if listed at a price out of This is exactly what happened in the example I spoke of above.
So here is the second scenario- The same house if listed correctly according to current market statistics- in this case $495K. The agent holds an open house, lines are down the block with buyers and agents waiting to get in to see the house and be the first or best offer. The open house ends at 3PM. By 5PM there are 5 offers in, the highest and best was $40k over asking. Offer excepted by Sellers. House went into contract with-in 5 days. Deal done!
This seems like a fairy tale , but is definitely not a fairy tale- it is the reality of todays market.
So my message to Sellers: Allow the professional to guide you thru the process. It can be a very emotional experience, but in the end, our goal is to help you thru the process and always work with your best interest at heart.