I’m going to wait for my price.
This also could be worded in its related form, “I’m not going to give my house away.”
In either of these cases, the truth is sitting right in front of the sellers’ face but they’re not willing or ready to admit the truth of the situation – their expectations aren’t aligned with the state of the market as it stands.
It’s all well and good that you may want $135,000 for your property when the best the comparable sales say you rightly can expect is $125,000. If you really want the $135,000 then wait for the $135,000 … but don’t have your home on the market in the interim.
Last week, one of my buyers’ agents made an offer on a property that had been on the market for nearly eight months. Market value and list price didn’t match and the buyers elected, oddly enough, to make an offer at market value. The sellers indicated they were content to wait for their price.
My question is this … how is it going to happen? What is going to make a buyer with other options pursue a property that’s overpriced by nearly 10 percent? Why would anyone pay the extra money just for the hell of it all?
Wait for your price. Just don’t do it on the market. That’s what I would suggest if I were these folks’ listing agent; instead, it seems the agent is content to have a stick in the ground of a property that cannot sell as marketed.
There are hundreds of agents who will accept a listing at any price just to get a stick in the ground. I made that mistake myself in 2007, goaded by a relocation department that urged me to “look at the big picture” and “preserve the relationship” with the seller and outside relocation company and lock up these listings so as to make our internal statistics of listings acquired look really good.
At one point in 2007 – the weakest market we’d seen, incidentally, in ages – I had 17 listings concurrently and finished the year with 25, one every two weeks.
It’s not something I’m particularly proud of … I could spin that record any way I wish but the reality remains the same. In an effort to placate sellers (and the relocation department at Arizona Foothills), I accepted a dozen and a half unsellable listings and priced them according to the sellers’ wishes, not market reality.
- 44 properties listed
- 19 sold, with another three under contract
- 2 canceled by mutual consent (one was Craigslist guy, who kept changing his listing on Craigslist with different list prices daily … I fired him.)
- 12 expired, seven of which were short sales that didn’t get approved in time to save the home.
The common thread on these latter listings? I won’t take the listing unless the home can sell, and that means having the right price on the property.
So, sellers, feel free to wait for your price. Just do it from the sidelines. Don’t saddle your home with an obscene number of Days on Market for no reason.