"Victim Of Severe OverPricing" Appraiser says

By
Real Estate Agent with Montana Homestead Brokers, Broker, CRS, GRI, SFR, RN

"Victim of severe overpricing".  I've seen this terminology used in several appraisals lately.  My question is, who is the victim?  The home, the seller or the REALTOR?  How about all three!  There is a very dramatic graphic I've used over the years to try to help seller's understand the hazards of overpricing.  The trouble is, many people just don't believe that this includes their home!  "I know I've seen a few homes that are overpriced, but I won't do that with mine, I know mine is worth more".  This sad story has been told for many years, no matter what the market is like.

  1. The home either doesn't sell, or sells far below it's otherwise best price.  
  2. The seller can't or won't understand why no one is showing their overpriced home.  They become angry and distressed because the REALTOR "hasn't been showing my home".  Buyers have no interest in looking at an overpriced home, the REALTOR can't drag people to show the home if they don't want to look.  A buyer is looking at homes in a certain price range and they can spot an overpriced home better than you think.
  3. The REALTOR makes a decision to market the home, spending time and money, with little hope of reimbursement.  Some REALTORS will take the listing, no matter what, just to benefit from email or phone leads asking about the home.  I would argue that taking an overpriced listing, with the understanding that the home will likely not sell, or sell for much less than it's market value, is not in the seller's best interests.

The solution would seem simple, if not for all of the emotional baggage attached to home pricing.  Basically, if you want to sell your home in today's market, don't be stuck on yesterday's price.

Gary Keller has captured this home pricing reality in a graph accompanied by his notes, for review.

cost of overpricing, Gary Keller

Posted by

The Quilting Realtor

Wanda Thomas

Many Dream Of Living In Montana

I'm One of the Lucky One's That Already Do!

Wanda Thomas

2wandathomas@gmail.com

Call or Text 406-698-8640 for help with all things Montana.

Local MLS Search Link

 

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Rainmaker
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Richard Glesser
North Country Appraisal Services - Gaylord, MI

An over-priced listing helps no one.  Unfortunately, there are some unenlightened real estate agents who still feel having their sign out there is a plus, even if the house won't sell near the list price.  The reality is that their reputation within the industry and with the public shrinks as they're never able to complete a sale and their listings expire with vocal and disgruntled property owners.  Good post!

Mar 21, 2010 02:10 PM #1
Rainmaker
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Wanda Thomas
Montana Homestead Brokers, Broker, CRS, GRI, SFR, RN - Billings, MT
Billings Montana Real Estate

I agree Richard.  Thanks for your comment.

Mar 21, 2010 07:08 PM #2
Rainmaker
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Adam Malachi
RLO Millennium Real Estate and Mortgage. - Castle Rock, CO
QSC,CDPE,CIPS,CNE,CRB,CRS,GRI,MRE,SFR

What a Wonderful post! I agree with the comments above! I walked away many time, because of the sellers over pricing! I did refer them to another broker!

Thank you very much for sharing!

Adam

Mar 26, 2010 01:09 PM #4
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Rainmaker
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Wanda Thomas

Billings Montana Real Estate
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