I spend a lot of time on reddit. I enjoy the extremely raw conversations, and I’m a little bit of a Troll, so reddit is a great place for me. You can follow me here! But I don’t recommend it if you easily offended.
One of the areas I follow closely is the subreddit “Real Estate” for obvious reasons. I answer questions, and ask questions and engage buyers, sellers, and agents. I’ve found that this allows me to stay plugged into the national real estate conversation, and I enjoy it.
This weeks question is a common question that home owners ask when things slow down, and while we as agents do the best we can in order to prevent this from happening, it happens! But that doesn’t mean you have a bad agent, it does mean that you and your agent need to be self aware enough to admit that maybe someone’s ego is actually driving the train.
This Weeks Question with my response (I’m DonJLindsey)!
If you follow this thread in it’s entirety, you’ll see agents try to tap dance around the fact that it’s either over priced, or not being marketed effectively because they don’t want to be accused of attacking the agent as that is an “ethics violation” according to the national association of Realtors code of ethics. However, I don’t care about agents feelings, I care about helping homeowners, and home buyers. So here’s the breakdown on how time and pricing work on listings!
Time and Price:
This graphic is from my listing presentation, and it shows us a couple of things. First, in Figure 1, it shows is that when you’re listing your house RIGHT AT Market Value, about 60% of buyers looking for houses like yours will see it. That’s pretty good right? Sure it is! Figure Two shows that the most amount of activity a house will receive in the life if it’s listing is within the first three weeks. Figure Three represents the size of price reductions required to get buyers excited about visiting your property, and submitting an offer.
So according to this data compiled by the National Association of Realtors Sully5408’s, house really has two issues:
(1) It’s priced incorrectly but being effectively marketed and the Market has literally voted that they do not want to tour it.
(2) It is priced correctly and being marketed ineffectively, and the Market has not gotten an opportunity to see it. In either situation something has got to change, because as time goes on, it will only cost Sully5408 more money.
As far as the claim that it is priced correctly and marketed effectively, I had a mentor once that said that EVERYTHING will sell, if you price it such that people would be willing to pay MORE just to avoid losing it. Nothing in the world is more true than that, and people are especially willing to pay more when they believe that they found their dream house. So if you’re like Sully5408 and wondering what you can do, or maybe you’re thinking about selling. Trust me when I say that the BEST thing you can do, is to take a risk, and go uncomfortably below market value, and if you have the right Realtor who can help you weather the storm of attention you’re going to get, chances are, you’ll make more than you thought you would! Trust me, I’ve seen it happen!