If it's overpriced, they will not come.....

If you've read my profile, you know that I was born and raised in Tarpon Springs. In fact, I live two streets away from the home in which I grew up. During my daily search of newly listed properties in the area I noticed one in particular in my neighborhood that is overpriced by about $300,000! I laughed a little out loud at the realtor, but began thinking of the sellers.

When preparing for a listing appointment, a realtor must have a goal in mind. My goal and the goal of many other reputable realtors is a successful sale and happy seller. Some others may list their goal as "getting the listing". Doesn't it make much more sense for a realtor to be honest with the seller about a listing price or condition of a home rather than tell the seller what they want to hear and have angry sellers at the end of 6 months when NO ONE has come to even look at the house?

A realtor cannot price your house. The market does that. If your home is in a neighborhood where the average sale price is $320,000 and your home is slightly larger and has a slightly larger lot, we have to look at what buyers are willing to pay. It is never appropriate for a realtor to ask the seller, "how much do you need to make?". This sets everyone up for failure and only wastes the time of the seller and resources of the realtor. Comparative analysis will show what similar homes have sold for per square foot, what similar homes are listed for and the total days on the market, and which homes haven't sold. With this data in hand, the realtor should then take a tour of the prospective home and mentally note the condition, ammenities and style of the home. It should then be easy to compare them to others and decide on a RANGE of prices with the seller.

It may not always be what the seller wants to hear and many times the realtor will leave that appointment without the listing, only to discover that another realtor has listed the property at an outrageous price to appease the sellers. Six months later, when the price has been reduced 4 or 5 times and then the listing finally expires, sometimes the original realtor is called back and the sellers have a more realistic approach to the market and pricing. Why waste those six months?

Overpricing is bad for everyone and hurts the market. Sellers should work with their real estate professional to determine not only a solid and fair market price, but also if it is truly time to sell. Honesty in the beginning makes for happy clients in the end.