Why would a Seller overprice their home?

By
Real Estate Agent with Premiere Property Group,LLC Portland Metro & Suburbs Oregon
http://actvra.in/rhb

Why would a Seller overprice their home?

I was asked this question today from a buyer wanting to buy a home in the Tualatin area. They were wondering why a seller would have their home priced much higher than other homes in the same neighborhood especially after it's been on the market for a long time?

Family looking at an overpriced homeWhen it comes to putting a home on the market, a seller has choices, but if they truly want to sell their home, they will work with a REALTOR® that will give them an honest opinion on pricing as well as other things to do to the home that will make it shine when it comes time to marketing the home..and ultimately SELLING the home.

My answer was that it most always comes down to motivation. When a seller sees the comparables, and still chooses to list higher "to test the market" or wait for that right buyer that loves it enough to pay more than others that have sold in their neighborhood, they are not motivated to sell.

Perhaps they really don't need to move...but are just waiting for that buyer from California who thinks $400,000 is peanuts. Perhaps, they put in some updates and feel that a buyer will happily pay for them...even though the other homes priced $30,000 below have updates as well. Even if a buyer will happily pay for them...there is always the appraisor that will be coming by to use those same comparables that the realtor showed the seller at the start.

Of course as a buyer, you'll never really know the motivation of the seller unless you submit an offer. Only then will the seller have something tangible in front of them and perhaps in that moment their motivation has changed.

Why would a seller overprice their home? Motivation...or lack thereof.


Posted by

 

Knowledgeable, Approachable, Service Oriented

Cindy Westfall ABR,GRI

Premiere Property Group,LLC

5000 Meadows Rd., Ste. 150, Lake Oswego, OR 97035

Cell: 503-819-5241      

E-Mail: cindy@cindywestfall.com

www.CindyWestfall.com

 

Cindy Westfall, Portland Real estate

 

E-Mail Home Search

 

 

 

Search For Your New Home HereHow much is your home worth

 

Five Star Professional Real Estate Award Winner 2013 & 2014

 

PMAR Masters Circle

 

YoutubeLinked InGoogle PlusFacebook

Disclaimer: All views on my blog are my own and may not reflect that of Premiere Property Group. All pictures and content are my own unless otherwise noted. Please No Copying without my permission.

 Cynthia Westfall is licensed in Oregon State

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Oregon
Groups:
Posts to Localism
Portland Oregon Home Buyers and Sellers
Portland Metro Real Estate
Advice for Sellers
Advice for Buyers
Tags:
selling a home in portland
buying a home in portland
overpricing your home

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
474,107
Chandler Real Estate Liz Harris, MBA
Liz Harris Realty - Chandler, AZ
#ChandlerRealEstateAgent

Fair market value is ALWAYS the best way to go!

Jan 14, 2012 11:00 PM #1
Rainmaker
478,361
Cindy Westfall
Premiere Property Group,LLC Portland Metro & Suburbs Oregon - Tualatin, OR
ABR,GRI Your Tualatin & Portland Metro Real Estate

Hi Liz, it is indeed if a seller truly wants to sell their home!

Jan 14, 2012 11:18 PM #2
Rainmaker
1,286,018
John Pusa
Sellstate Pacific Realty - Glendale, CA
Your All Time Realtor With Exceptional Service

Cindy - Thank you for sharing detailed quality information on why would sellers overprice their home.

Jan 14, 2012 11:28 PM #3
Rainmaker
492,029
Andrea Bedard
Thompson Company, REALTORS - Silver Spring, MD
M.A.; REALTOR Silver Spring, MD and beyond

Cindy: when I saw your title I immediately thought because they don't really want to sell! Great minds think alike :-) ... and sometimes it is because of the value they see (emotional attachment, all the money spent on updates etc.) which doesn't relate to the actual market conditions.

Jan 14, 2012 11:49 PM #4
Rainmaker
478,361
Cindy Westfall
Premiere Property Group,LLC Portland Metro & Suburbs Oregon - Tualatin, OR
ABR,GRI Your Tualatin & Portland Metro Real Estate

Hi John, you're very welcome!

Jan 15, 2012 12:07 AM #5
Rainmaker
478,361
Cindy Westfall
Premiere Property Group,LLC Portland Metro & Suburbs Oregon - Tualatin, OR
ABR,GRI Your Tualatin & Portland Metro Real Estate

Hi Andrea, in this scenario, it looks like the sellers are original owners, so the emotional attachment might be a big part of holding them back from really wanting to sell...thus pricing the home too high. It's so much work to have your home on the market, it makes you wonder why sellers want to even put themselves through that!

Jan 15, 2012 12:09 AM #6
Rainmaker
171,387
Debbie Holmes
Gold Key Real Estate - Boise, ID
Gets the job done!

They often overvalue their improvements or they can't believe the marekdet is that far down.... Just sells other peoples listings.

Jan 15, 2012 12:24 AM #7
Rainmaker
478,361
Cindy Westfall
Premiere Property Group,LLC Portland Metro & Suburbs Oregon - Tualatin, OR
ABR,GRI Your Tualatin & Portland Metro Real Estate

Hi Debbie, that's exactly what it does...but sad that the buyers that really like the house might not ever get to own it because the sellers on unrealistic. How you feeling btw? better?

Jan 15, 2012 12:50 AM #8
Rainmaker
690,267
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Cindy - You've given us a lot to consider.  Sellers have to be motivated to correctly price their property right if they want to sell in a reasonable amount of time. 

Jan 15, 2012 02:10 AM #9
Rainmaker
478,361
Cindy Westfall
Premiere Property Group,LLC Portland Metro & Suburbs Oregon - Tualatin, OR
ABR,GRI Your Tualatin & Portland Metro Real Estate

Hi Laura, it usually is about motivation..of course other things can come into play.

Jan 15, 2012 03:12 PM #10
Post a Comment
Spam prevention
Show All Comments
Rainmaker
478,361

Cindy Westfall

ABR,GRI Your Tualatin & Portland Metro Real Estate
Feel free to contact me with your questions!
*
*
*
Spam prevention

Additional Information