This is a cautionary tale for all Real Estate agents and home sellers. Sadly, this is a true story one that I think we can all learn from. This took place this past August. After every thing that happened the seller in this story never ended up selling his house and now it is off the market.
I’ve reprinted that article below as written in August of 2007.
Is a Bird in the Hand better than Two in the Bush? The answer is yes!
Times have changed, the market is no longer a Sellers market. I know you all know that, have heard it on the news, read the articles in the papers…all the doom and gloom but even so many sellers are acting as if it is still a sellers market. As if willing it will make it so! So are many real estate agents! I’m all for being optimistic and positive but I’m also realistic.
And REALISTIC is where you need to be and you need me to be… if I were your agent.
I know it hurts, you bought your home, cherished it and now it’s time to sell and the American Dream of making big bucks quickly by selling your home is NOT going to happen for you.
What that means for you as a home owner is simply that it will be harder to sell your home and you’ll realize less of a profit. But… you still can sell it!!!
You need to adjust your mind set. You need to act fast when an offer is received. Dragging out a presentation or a decision on an a valid offer in hopes another offer will materialize creates anxiety and stress not only for you but for the buyers. Two years ago the buyers would have waited it out…hoping that you would decide in their favor. They had no choice but to wait.
Today Buyers do have choices and that is the BIG difference! They don’t have to wait for you.
Sellers run a big risk by delaying…the longer a seller puts off making a decision the further away the buyer becomes emotionally from the home.
That emotional distance can be a killer…while the seller is deciding or waiting for an other offer the buyers with an offer in hand are starting to look at other homes. Just in case they can’t get the home they put the offer in on…buyers have choices today.
Daily more homes come on the market…more choices for buyers..as inventory increases the chance of competing properties being listed at a lower price than your home increases.
A bird in hand is better than two in the bush. Recently to be fair a seller put off having an offer presented to them, simply to give another set of buyers time to also make an offer.
That seller felt in control…maybe it took longer to get an offer but suddenly they had not only one offer in but an other coming in. So they waited and waited. They felt in control…maybe even had dreams of a bidding war.
By the time they decided to stop waiting for the second offer to materialize they lost the first buyer! Prior to the presentation they withdrew their offer and pursued another home.
Those sellers went from one solid offer in hand and another in the wings to NOTHING. You see the second offer never materialized! The cost of being fair and delaying in making a decision cost the seller. Both buyers??? They found other homes that suit them just fine.
My advice:
Price your home aggressively, there are lots of homes out there. July and August are traditionally great months to sell as many buyers want to be settled in their new home in time for school to start. Look around and see which home in your price range is your stiffest competition and price your home lower. Get a list of competing properties from your agent and drive by them. If you were buying which one would you look at first? Yours or your competition?
Make sure your home shines both inside and out! Curb appeal is crucial.
Check out the photos of your home that are on line and in MLS. Do they represent your home correctly? Does your agent have a virtual tour posted?
Make sure your home SMELLS nice as well as LOOKS nice, walk in your home the same way a buyer will…what do you see when you enter your home? Be honest with yourself. Would you buy your home all over again at the price your asking?
When you do get an offer in…a valid offer in writing and with a deposit check…act on it. Think seriously and consult with your REALTOR before making a counter offer. Re-analyze the market…maybe your CMA is a few months old. The market changes rapidly and you must have current data to make a good decision. And lastly home selling and buying is an emotional business…you need to try and put your emotions aside and think clearly.
Hire a REALTOR, one that you trust and work well with…work together…and the end result will be worth it. TEAM=Together everyone achieves more.
Read also:
Don’t stigmatize your home by over pricing!
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About Monika McGillicuddy
Hi Monika,
This is an excellent post that should help sellers and agents alike to better understand why realistic pricing in today’s market is so very important. Great job with this touchy subject.
Ann
Thanks Ann. I went and saw your new site…awesome!!
Hi Monika, stopped by on the Blog Tour. The scenario you describe is heart wrenching at any time but especially more so in the real estate market today. Good, solid advice here!
Hi Lola,
Thanks for visiting my blog. I think we can use all the help we can get. It really bugs me that the seller in this story ended up losing all the way around.