Pittsburgh's Best Homes Blog

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2 Ways To Sell A House

money house

A tale of two sellers...

 

Seller #1

Priced their home so that it was obviously the best home available at the price in their market, helped by the fact that inventory was low. Day one they had 10 showings and two offers. Negotiated a full price offer, sold their home and moved a month later.

 

Seller #2

Priced their home "a little bit high to allow for negotiation" even though there were several other comparable homes that were priced lower. Had a few showings, no offers, 30, then 60 days go by, did a small reduction, a few more showings, no offers, price reduction, a few showings, no offers...still waiting.

 

Which would you prefer?

Buying or Selling a home in Pittsburgh? Call Christa Ross from RE/MAX Select Realty, at 724-933-6300 x214 (office) or 724-309-1758 (direct) or visit my website at www.bestpittsburghhomes.com.

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Comment balloon 23 commentsChrista Ross • September 23 2013 08:38AM

Comments

Christa, I sat with sellers yesterday discussing list price.  They thought their home was worth more than $100,000 than the market will support.  The data (comps) helped them see their valuation was high. 

Posted by Kathleen Daniels, San Jose Homes for Sale-Probate & Trust Specialist (KD Realty - 408.972.1822) over 6 years ago

Christa,

Great point. Hopefully sellers are willing to listen to their professional Realtor when marketing their home.

Posted by Trisha Bush-LeFore, Providing Realtor Services in the Walla Walla Area (Preferred Properties Land & Homes) over 6 years ago

Very good points...I wish all sellers were like seller #1.  It would make all of ours lives so much easier.

Posted by Marc McMaster, Putting my clients before myself (RE/MAX Centre Realty) over 6 years ago

Marc, I agree, I wish all were like seller #1, it would make everyone happier.

I find it interesting even when presented with the comparables how many people feel like they need to leave so much extra room for "negotiating", the only thing they really do is give themselves more room to come down on their price after weeks of waiting for someone to buy with no luck.

Posted by Christa Ross, Helping you buy and sell Pittsburgh's Best Homes (RE/MAX Select Realty - REALTOR and Green Homes Specialist) over 6 years ago

Christa, Short and to the point. In the end Seller #2 will probably get less than if they had priced correctly from day 1

Posted by Helen and Larry Prier- Re-Max Gateway - Residential Real Estate, Anacortes & surrounding Skagit & Island Counties (RE-MAX Gateway- Residential Real Estate Sales) over 6 years ago

Christi, great example of what works and what does not.  I think technology is not helpful here in that there is a lot of "thought" out there that you need to build in negotiation room.

Posted by Kelly Young, Colorado Springs Real Estate ~ 719-226-0126 (The Platinum Group Realtors) over 6 years ago

I love your presentation - short and to the point. Homeowners always seem to fantasize that someone will come by, love the house as much as they do, and offer a million dollars for it.

Posted by Jill Sackler, LI South Shore Real Estate - Broker Associate (Charles Rutenberg Realty Inc. 516-575-7500) over 6 years ago

Every day is a great day to do comps and let your seller know you are working in their best interest by pricing appropriate to the market!!

 

Posted by Richard Arnold, Realtor - Tempe, Chandler, Mesa, Gilbert, Phoenix (Keller Williams Realty East Valley) over 6 years ago

Christa, the overpriced listing is the 800 pound elephant in the room.  It seems that no matter how much you tell a seller that the house is over priced, they do not listen (far too many anyway).

Posted by Mike Cooper, GRI, Your Neighborhood Real Estate Sales Pro (Cornerstone Business Group Inc) over 6 years ago

Christa,

What a great contrast!

Price it to sell baby!

Good job!

Kevin

Posted by Kevin A. Guttman-Author, ReverseMortgageSpecialist, 877-251-9709 (NMLS #384936) over 6 years ago

I'm going through this right now with a seller!  We can tell these sad tales only so many times before we have to let them (reluctantly) find out the hard way.

Posted by Margaret Goss, Chicago's North Shore & Winnetka Real Estate (Baird & Warner Real Estate) over 6 years ago

And they may still wait so more because the slow season is creeping in.  Not sure about your market but we typically see a slow down.

Posted by Carla Muss-Jacobs, RETIRED (RETIRED / State License is Inactive) over 6 years ago

Helen and Larry, I agree, in the end the seller #2 will probably get less for their home, especially if you add up the cost of their time.

Margaret, sad but true, sometimes we just have to let them learn on their own.

Posted by Christa Ross, Helping you buy and sell Pittsburgh's Best Homes (RE/MAX Select Realty - REALTOR and Green Homes Specialist) over 6 years ago

Yeah it can be trial and error at times if people don't want to hear from the pros. I agree with Margaret on this one.

 

Love and light,

Laura

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) over 6 years ago

Wow, what a difference!  Then Seller # 2 gets so discouraged that listening to reason seems like a defeat and the ego becomes involved, etc, etc.

Posted by Elise Harron, Rural Vacant Land and Development Specialist (Dirt Road Real Estate) over 6 years ago

Seller #1 situation here ... two lowball offers, Southern California market cooling, interest rates are fluctuating and we've been on the market 3 weeks!  Wishing we had your seller #1 outcome for our seller #1 scenario!  (Our home is $40 per square foot less (based on sold comps) than the home a few doors down!  (They are asking $20,000 more for 800 square feet less home!)

Posted by Troy Huerta, Changing the way Home Buyers BUY! (SRE Technologies) over 6 years ago

Christa, with your presentation, it will be hard to pick up option #2. However, pricing is an art - and in this market, I'd still go with #2 with marginal higher price!

Posted by Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners) over 6 years ago

Seller #1 would definitely be better for the seller- full price and speedy; Seller #2 will  probably end up with a final price below market if the house continues to sit.

Every seller is different!

Posted by Kat Palmiotti, The House Kat (406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty) over 6 years ago

Seller #1...new listings get the most action during the first two weeks with buyers that are action takers that will move on a home that is priced right...pricing high to test the market almost always nets the seller less money.

Posted by Goran Utvic, We Buy & Sell Chicago Houses Fast (606 Homes LLC | Chicagoland Brokers Inc, Chicago IL 60656) over 6 years ago

Sellers needs to realize that buyers are very savvy these days.  The market today is very transparent.  Buyers have access to all the information they need to determine the market price range for a given property.  As I always tell my clients, "There is a tale between two markets.  One that is priced to sell and one that is priced to sit.  Which one do you want to be in?"

Posted by Rosie Moore (Serving Sugar Land, Richmond, Rosenberg, Missouri City) over 6 years ago

hey christa i like seller 2 as negotiation happens with me all the time.. ;)

Posted by Mohan Tarneja over 6 years ago

As I have told many sellers the price you list it at determines how fast it sells and for how much and the pricing strategy is determined by the current market, not me, not you. Both our jobs are to bring it on the market at the right price.

At one time my main personal office was in Orinda across the bay from S.F. The Frisco market was hot, I know the snob hill ladies don't like the Frisco and want to drape it in silk but that was the side of Frisco I grew up with and loved. Any way a broker friend of mine called me and said help, come check out a listing of mine. He had priced it at the $750k he hoped to sell it at. I told him to reduce the price to $675k and he turned green, and said the market is hot, we can get the $750k The sellers looked disgusted and asked if I was an idiot. I said it is what I would do if it were mine, just do it, your not getting any offers and if you get one you don't like you don't have to sell it. They did and 3 days later my friend is calling saying they have a solid $850k deal. I had just gone out to dinner with him and our wives a few weeks before and said now is the time you will get the auction effect in the  Frisco marketplace. I guess he was more interested in his veal shank at the time then the marketplace situation. Never did get a call from his sellers taking back the idiot comment.

Posted by Brian Park (Park Realty Investments) over 6 years ago

What if i tell you that for overpriced houses that are willing to negotiate, there are buyers who want to buy such houses, those who are looking for a deal? True story: One of my clients insisted to offer less than the listing price for everything he liked. Because this is how his friend bought his house. He wanted a ''deal''. Needless to say, that we were loosing house after house, since there were other offers better and higher. Comps were ignored, any reasons that the listing price was right were ignored. Finally I decided to act differently, I found the house for them that was overpriced, 3 month on the market, no offers, no price reductions. I brought them in, even they thought it is not in their budget since they had so many rejections, they liked it, i wrote the offer for 10% less, cash. Offer was accepted and the escrow was closed in 7 days. Sometimes a client want that space to negotiate.

Posted by Inna Ivchenko, Realtor® • Green • GRI • HAFA • PSC Calabasas CA (Barcode Properties) over 6 years ago

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