SELLERS NEED TO BE REALISTIC IN TODAY’S

Real Estate Market. I had a telephone conversation

with a seller the other night.  This couple has put their home on the market each of the last three years.  They have yet to sell it.  They recently listed in January, 2009 and the listing just expired.  They wanted to talk to another agent to get a different point of view.  The agent they have been using is a friend.  I agreed to talk to them.  I am nothing if not totally honest.  They live in a desirable community in North Scottsdale and I recently sold a home in there — I like what I do and understand the market.

Their home is about 3,000 sf, they have a lovely yard, no view other than the block wall, but the yard is large enough to make it a paradise….and it is.  The kitchen is not too outdated — although they have two different types of countertop material; one on the island and one on the surrounding counters.  The bathrooms are original and the home is about 15 years old.  In addition, they have several different types of flooring throughout.  They felt that all the different flooring might be the a problem.  I agreed that at the price they were asking as well as the money that a buyer would have to put in the home to update/correct things that they were overpricing the home.

In addition, they shared that they have not had a single offer during any of the three times the home has been on the market — not even a low ball — and they have had very few showings.  This is a definite red flag that the home is overpriced.  The first couple of weeks of a listing cycle (if the home is priced right) are the busiest.  If you’re not getting traffic through especially in the beginning, how are you going to sell?  In addition, their agent held open house after open house to no avail.  I am not a big fan of open houses.  I think it brings in nosy neighbors and only helps the agent sitting the open house meet potential buyers who are not working with an agent.  I feel that they are more “realtor showcases” than an effective marketing tool.

Sellers need to be realistic about this down market.  There are lots of homes — lots of competition.  You must be serious about selling.  You must have a heart to heart to discuss what your bottom line can be whether it’s financial or emotional.  If it’s emotional, perhaps it’s not the time to move.  In addition, homes priced over $500,000 sit a little longer unless they are short sales or bank owned.  Make sure that your agent is keeping you updated on the statistics for your market, i.e, number of listings and average days on the market.

This is indeed a difficult time in real estate.  However, with the right agent who you like and who you think is doing their best, and who’s not just interested in having a lot of listings for appearances, it can be a positive experience.