The Question is; "Why is the price so HIGH"?

By
Real Estate Agent with Dan Edward Phillips

"Why is the price so high"? This is a question I am asked by buyers after they have viewed some home.

In some cases the home interests them and they might consider writing an offer. The problem is they have also viewed other similar homes that are priced lower, in some cases considerably lower.

How would you as the 'owner' answer that question?

If you will be listing your home for sale on the market, start working with your listing agent early to determine the current market value of your home. You may want to drive by homes that have recently sold, you may want to review virtual tours of homes that have recently sold, you may want to visit homes on the market that your listing agent feels are similar to yours and reasonably priced for the current market.

In this market, buyers will not overpay for a home (in most cases their lender will not let them) and they will look elsewhere to make an offer if the price on your home is too high.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. C. Lloyd McKenzie 06/05/2011 08:20 PM
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dan edward phillips
eureka california real estate
arcata california real estate
humboldt county california real estate

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Rainmaker
839,534
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

Great points Dan.

 

Jun 05, 2011 06:16 PM #1
Rainer
355,195
Nor Yeretsian
Envoy Capitol Realty Inc. - Toronto, ON
Envoy Capitol Realty Inc., Brokerage Toronto

Dan, it is usually a sign of either their agent has not prepared a proper CMA ( done their homework ) or overtly ambitious sellers trying to get their favourite number.

In either case the market with disciple them or reward them.

cheers

Nor

Jun 05, 2011 06:20 PM #2
Rainmaker
406,120
Paul Walker
Equity Fifty Five Realty, LLC - Scott AFB, IL
Scott AFB IL Area Realtor

Buyers know the real estate market sometimes better than their buyers agent. They know when homes are over-priced and not worth any consideration in this real estate market. For sellers, yes they are free to ask anything they wish (overall), but any good listing agent will walk away! This is not a market to "test" how much you will get, because we have all seen enough very well priced homes, sit and sit, until they become priced at even a better bargain before they can get someone to pull the trigger on it. This market everyday, seems to teach us....how low will it go? And the longer you are on the market, the more you as a home seller will end up losing.

Jun 05, 2011 06:21 PM #3
Rainmaker
583,426
Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Hi Joshua, tahnks for stopping by!

Nor, you are ABSOLUTELY correct!

Hi Parl, this is not the market to 'test' in I agree, price it right and it will sell.

Thank you all for your excellent input!

 

Jun 05, 2011 06:25 PM #4
Rainer
83,961
Christi Koch
Keller Williams Realty - Austin, TX
Realtor - Austin Texas Keller Williams Realty

I have turned down listings because the sellers "needed" to get a certain price or did not want to "give their house away".  Even if there was a buyer willing to overpay for a house, the appraisal would kill the deal.

Jun 05, 2011 07:28 PM #5
Rainmaker
494,150
C. Lloyd McKenzie
Prudential Allstar Realtors - Albuquerque, NM
MBA - Prudential Allstar Realtors -

Dan...ths is probably the most important question that a listing agent needs to address with his client.  One of the basic requirements of becoming a realtor should be to have some backbone.  I would rather walk away from a listing (and I have) than over pricing it. Excellent post Dan

Jun 05, 2011 08:13 PM #6
Rainmaker
136,158
Steve Stenros
Poway,La Jolla,Del Mar,Mira Mesa,Carlsbad,Escondido,Temecula - San Diego, CA
CREIA MCI, ICC, Home Inspector,San Diego

This is a common problem, Dan. People always seem to think their home is worth more than it really is.

Jun 05, 2011 09:08 PM #7
Rainmaker
583,426
Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Hi Christi, thank you for your excellent comment and support!

Hi C Lloyd, I agree with you 100%, why waste the time and money on an overpriced listing.

Hi Steve, thanks for your comment, doing a realty check with clients is sometimes difficult!

Jun 05, 2011 10:09 PM #8
Rainmaker
610,594
Sheila Newton Team -- Anderson & Greenville SC Real Estate
Berkshire Hathaway HomeServices - C. Dan Joyner - Anderson, SC
--Residential/Short Sales/Foreclosures

I see the same thing all the time.. even some of the bank foreclosures I list I spend a great deal of time trying to telll them they are overpriced .. they say "tell the buyer to make an offer".. well, first of all, not all of them are MY buyers and secondly, they won't bother when the home is too overpriced..!

Jun 05, 2011 11:58 PM #9
Rainmaker
501,331
Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

It is always sad to see over priced homes come on the market, they will just sit.

Jun 16, 2011 07:29 AM #10
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Rainmaker
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Dan Edward Phillips

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