I Can’t List Your House based on What You Want to Net

By
Real Estate Agent with First time home buyers, downsizers,seniors,new construction
http://actvra.in/9dR

 

I hear this comment several times from a prospective seller,  "If I don't get X from the sale of my home, I won't be able to do Y".  So "we" need to price it at Z!  Mr. & Mrs. Seller, this is not a good approach to take in selling your home.  It doesn't matter to a prospective buyer what you want to net.  The only thing that matters is what a buyer is willing to pay for your home.  

I research, very diligently, what has sold in the area, comparable to your home. Remember, your home will have to appraise. An appraiser will look at those comparables as well.  I look at what is on the market that is your competition. We want a buyer to choose your home over the others.  I evaluate how many houses sell per month and how many are listed in the area of your home.  That is an indication of the number of buyers.  And then I do the math to reach a price to market your home based on its condition, location, appeal.  There is no calculation for what you want to net.

what you want to net

 

 

 

Agents don't create the market.  Market demand, interest rates, the economy and inventory are what control the local market. We realtors can't fix the economy and we can't change what people are willing to pay for your house.  So we cannot control what you want to net.

I Can't List Your House based on What You Want to Net

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If you are Buying, Selling or Relocating to the Lansdale, Montgomery/Bucks county PA area and need help from a professional REALTOR®, I would be happy to assist you!
Please visit my Lansdale real estate website for property searches and to sign up for free listing alerts and other information.

 

 

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Re-Blogged 7 times:

Re-Blogged By Re-Blogged At
  1. Donald Bradbury 05/02/2011 03:26 PM
  2. Cheryl Ritchie 05/02/2011 04:51 PM
  3. Kim Daugherty 05/03/2011 10:28 AM
  4. Steve Hoffacker 05/03/2011 12:43 PM
  5. Bill Gustafson 05/03/2011 01:42 PM
  6. Gene Riemenschneider 05/04/2011 12:44 PM
  7. Gabe Sanders 05/09/2011 06:56 AM

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Show All Comments
Rainmaker
65,644
Brenda & Ron Cunningham
West USA Realty - Phoenix, AZ
Realtors, Homes for Sale - Phoenix Metro

It is hard sometimes to get a seller to be realistic.  They had to look at what the real value is.

May 03, 2011 05:40 PM #76
Rainmaker
144,944
Marshall Brown
Mid America Inspection Services, LLC - Fargo, ND
BSEE, CHI

I'm thinking you need a T shirt that says "Numbers crunched here, wishes are handled by another department."

May 03, 2011 06:24 PM #77
Rainer
39,314
Kathy McGuriman
First time home buyers, downsizers,seniors,new construction - Lansdale, PA
CRS, SRES, ACRE, Realtor for Lansdale, PA area

Marshall - Good one!

May 03, 2011 07:03 PM #78
Rainmaker
339,178
Debra Gould
Staging Diva / Six Elements Inc. - Toronto, ON
The Staging Diva

Great post Kathy and I love Marshall's T-shirt idea.

I wonder if clients like this would respond to an analogy, or if you asked him to look around and guess whether all the other homes that have recently sold in his neighborhood were priced at what the vendors wanted to net.

May 03, 2011 09:26 PM #79
Anonymous
Anonymous
Jodi Theis

Great post!  Sometimes sellers need to be reminded of these things!

May 03, 2011 10:06 PM #80
Rainer
68,804
Robert Courtney
Lihue, HI
Century 21 All Islands, RA, CDPE, MCRE, CIAS

Kathy - Trying to get a seller to look at his house as an investment decision is so challenging.  Their memories, the money they spent to paint it pink to match their curtains, and on and on.  When they were spending the money they probably were not up on what the market for their neighborhood was doing.  Hence the battle.  Do you provide occasional CMA's to homes in your farm?  I think this is one way of at least having a foot in the door and a track record of service that may have some influence when selling becomes an option.

May 04, 2011 02:09 AM #81
Rainmaker
163,177
Christine McInerney
The McInerney Team with Realty Executives Associates - Knoxville, TN
The McInerney Team, Knoxville TN Homes For Sale

I hear this comment all the time as well.  A home is only worth as much as someone is willing to pay for it.

May 04, 2011 08:32 AM #82
Rainmaker
170,660
Ellen Kippel
Weichert Realtors - Suffern, NY
Realtor Suffern Rockland County NY 914-588-2365

I agree - the research we do to help a seller decide on a price, is the best we can do.  What they want to net has absolutely nothing to do with what the market will say!

May 04, 2011 10:52 AM #83
Rainmaker
173,546
Dan Jasmer
J Wood Realty - Sarasota, FL
Changing the way you look at real estate

In the middle of drilling this into a sellers head right now.  She'll eventually get it and I will continue to repeat it. Thanks!

May 04, 2011 11:36 AM #84
Rainer
55,770
Linda Gurtel, CRS
Coldwell Banker Residential Brokerage - Glastonbury, CT

So true, as one person said there is no testing the market today. 

May 04, 2011 11:54 AM #85
Rainmaker
1,264,741
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I wonder if they needed less than they could get if they would be happy with a Net Listing and just settle for what they needed?

May 04, 2011 12:42 PM #86
Rainer
10,224
Tina Randler
Lancaster County, PA - East Petersburg, PA

I love the article esp since I just had this conversation with a seller just two days ago!

I also love that you took the activerain university class on blogging and it shows :) GOOD JOB!

May 04, 2011 01:29 PM #87
Rainer
51,808
Cheryl Malone
Windermere Van Vleet - Medford, OR

Yes, funny how sellers seem to think things work ! 

May 04, 2011 07:25 PM #88
Rainmaker
161,797
Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty licensed in GA and AL

Sellers also don't realize that in many areas, tightened lending markets have reduced the number of people who can actually buy, so that even the properly priced homes have fewer potential buyers.

May 04, 2011 11:50 PM #89
Rainer
47,948
Paula Burt
REALTOR , SFR, RECS

Kathy, you put it so well!  If only Sellers could just KNOW this, or at least have the capacity to detach their emotions and use their eyes of logic and common sense!  (Oh!  I forgot!  Those things don't count for much any more, do they?)

You solicited some great ideas and responses, but especially some humor!  I'm still chuckling over the two funniest, which were so clever (Marshall & Scott)!  And I really appreciated Jim Hale's graph!

May 05, 2011 02:23 AM #90
Rainer
8,940
Bob Sweazy
Prudential A. S. de Movellan Real Estate - Lexington, KY

Great post!

May 19, 2011 01:39 PM #91
Rainmaker
217,417
Patricia Beck
RE/MAX Properties, Inc., GRI, CDPE - Colorado Springs, CO
Colorado Springs Realty

So true, I think many sellers often forget an overpriced home will not appraise.

May 24, 2011 10:17 AM #92
Rainmaker
563,652
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

That is a great description of the pricing recipe. Have to make it tasty for the Buyers or the house sits on the shelf, so to spreak.

Jul 19, 2011 09:39 PM #93
Anonymous
Anonymous
Connie Addison

Great post - my favorite is "if you were a buyer would YOU pay that"?

Aug 18, 2011 06:06 PM #94
Rainmaker
129,388
Matt Robinson
Professional Investors Guild - Pensacola, FL
www.professionalinvestorsguild.com

So very true Kathy!  Since when did how much money a person needed from their home have anything to do with what it's worth.  I'd like to get a million from my home so I can pay cash for a home on the water, pay off all my bills, and go to Hawaii for a month.  Nevermind the fact that it's worth $150k and my mortgage is $120k.  LOL!

Nov 15, 2011 12:23 PM #95
Show All Comments
Rainer
39,314

Kathy McGuriman

CRS, SRES, ACRE, Realtor for Lansdale, PA area
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