You Want HOW MUCH for Your Home?

By
Real Estate Agent with RE/MAX Real Estate Consultants CA DRE #01147426

Recently I’ve been working with a Cash Buyer who also happens to be a Realtor in another city. I was showing homes in the Palm Springs Desert Area of California in a city called Rancho Mirage.  She and her husband are SERIOUS BUYERS, but they are NOT STUPID and NAÏVE BUYERS. Here’s the problem I’ve recently encountered when looking at many of the homes currently on the market.

 

Many of the Homes Are Grossly Over-Priced and the Sellers Refuse to Price their Homes REALISTICALLY. They will only sell if they get THEIR PRICE, not the price the market is telling them their home is worth!

 

We saw (3) homes the buyers liked. All three homes were $50,000 to $90,000 over-priced and in each instance, after discussing this with the Listing Agent, each agent said they had shown their sellers what other similar homes in the area were selling for, but their sellers refused to come off the price the Seller felt their home was worth.  They didn’t care what the market was showing them. All three homes had received very good and reasonable offers in the past, but in each instance, the sellers turned these offers down. And in all cases, these homes had been on the market 170-307 days!

 

I have to wonder “Why would an agent take a grossly over-priced listing when they know the sellers will never be able to sell at that price?” In doing so, this is a huge waste of time and money for the Listing Agent. It’s also a waste of a buyer’s time as well as the agents who is showing them property. The Listing Agent knows the home will never appraise and a buyer will never be able to obtain a loan on that home. So WHY put the home on the market? Perhaps this was how the market was back in 2004-2006, but this is 2012 and this is NOT WHAT THE MARKET LOOKS LIKE TODAY.  “Hello…..wake up Sellers! Since when did you become the EXPERT in Pricing your Home to Sell?”

I long for the day when we will have a larger inventory of well-priced homes to show our buyers…….I long for the day when a Seller will actually want to SELL. I long for SANITY to return when it comes to buying and selling homes. Oh, for the good old days of yore!

What have you seen in your market? 

 

IMPORTANT: If you or someone you know is interested in buying or selling a home in the Palm Desert Area, try searching properties on the same Desert Area MLS Realtor’s use, or give me a call….or visit my website at Palm Springs Homes and Estates. I will be happy to give you or your referral my “red carpet service.” After the sale, I will send you a $50 Gift Certificate towards dinner in a fabulous Palm Springs Area Restaurant so you can celebrate!

Brought to You By Your Favorite Realtor
Nancy Hankin

 

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Show All Comments
Rainmaker
1,123,975
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

In the upper tier priced properties, I think this is still an issue.   In entry level residential, not.   When an owner doesn't have to sell, this is what happens.

Sep 25, 2012 09:42 AM #1
Rainer
162,529
Edward Gilmartin
Boston Homes - Boston, MA

You have to find sellers who must sell ...not sellers who will sell.

Sep 25, 2012 10:02 AM #2
Rainmaker
1,275,068
Carla Muss-Jacobs, Principal Broker/Owner
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% o... - Portland, OR
Buyer Focused ~ Buyer Results

#1 and #2 share my sentiments.  Those owners that don't need to sell, but will sell if the price is right can sit on their property and not budge.  Maybe the market will catch up to their pricing, maybe it won't.  Then, as you point out, the length of time on the market can turn off buyers -- stale listings.  If the buyers are financing even the appraiser will see the lenghth of time on the market and wonder about it. 

Sep 25, 2012 12:41 PM #3
Rainmaker
125,138
Nancy Hankin
RE/MAX Real Estate Consultants - Palm Springs, CA

I agree with all your comments. What I will never understand is WHY do Realtors take Over-Priced Listings? Perhaps if they stopped this practice, we would all be better off.

And here is another reason I feel this is wrong. The seller often lists with the Realtor who lies to him or her and tell them their is home is worth $50,000mo than Market Value….just to obtain the listing. This is such a dis-service to the unsuspecting seller. It also is a total waste of time when we show over-priced properties to our buyers….and this is often not discovered until we get ready to write an offer and run the comparable sales in the area.

 

Sep 25, 2012 04:09 PM #4
Rainmaker
149,705
Michael J. Gallo
Florida Luxury Realty - New Port Richey, FL
Florida Luxury Realty - Gulf Home Sales Team

Nancy, Sometimes I think it is due to the location.  Sometimes agents feel that having signs in the yards all over town will make them successful. In actuality, over time...they get a bad reputation and as those homes expire the sellers tell the agents they interview next poor reviews of the agent.  

Sep 27, 2012 05:53 AM #5
Rainmaker
125,138
Nancy Hankin
RE/MAX Real Estate Consultants - Palm Springs, CA
Michael: I agree that some Realtors feel their success lies with SIGNS ALL OVER THE PLACE, but shame on the Realtor who thinks more about their own exposurer than they do about their client's being able to achieve their goals.
Sep 27, 2012 08:07 AM #6
Show All Comments
Rainmaker
125,138

Nancy Hankin

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