The Client Knows its Overpriced…

So a client of mine sees a house they like from a search I provided them with. The next day we go see the unit, and the next day he brings his significant other with him to get her approval. THEY LIKE IT, and want to submit an offer! I dont blame them – the house was very nice, the layout was very functional in a unique way, and it provided JUST enough room for improvement so that they saw future potential but not at the expense of a headache of renovations upon their move-in. There was one thing however, that didnt make sense – THE PRICE. This particular unit was in a range of townhomes in Orleans that would normally  be much more palatable than this one, equiped with up-to-date hardwood and a new kitchen as well.  Something about the unit just seemed to be slightly outdated and outclassed by its competition in its respective range.

So what did I do? What any good REALTOR would – HOMEWORK. I went back to the office and dug into past and present comparables and adjusted the price of all the nearest comparables to see what they would go for at this very moment had they had the exact same features. The results were in – 20K overpriced! How had a seller, or even worse, a listing agent – overpriced by THAT much? Has the market appreciated significantly? No. Is this particular type of housing in shortage and in high demand? Townhomes in Orleans! HA! Not exactly…

So not only did I prepare the offer, with all the documentation and information for all parties involved, but I actually supplied my analysis to the other side and indicated that their ‘ballpark’ was in a completely different end of town! How had they overpriced so high?

Phone Rings.

Its the Listing Agent.

“Yadda Yadda .. (wait for it)… Yadda.. THE CLIENT KNOWS ITS OVERPRICED, and they wont look at this offer. I know its a good offer but they’re not in a rush”

Wait a minute.. they KNOW??? Do they also know that not only are they throwing ALL the comparables on their street off, but their unit will miss the search for people that are looking for houses in its acceptable range, and that this house will sit there and develop a negative stigma and eventually get low-balled? Do they not know its a BUYERS MARKET and there are better houses down the street, block and in every direction from them?

What they are doing makes NO SENSE. If they dont want to sell, get the product off the market. Here  my clients are, going to visit the unit TWICE (they live out of town) and go through the emotions of submitting an offer and waiting – just to hear that! How many others are going to have to waste their time? What about all the sales representatives that are putting in effort to make the market more efficient?

I am not in the business of ‘sitting and waiting to see what happens’. I am in the business of  SALES, and I help my clients BUY Real Estate for the best bang of their buck, or SELL Real Estate for top dollar. That does not include by ANY means, an inflated price just for giggles.

A suggested Market Price is something that SHOULD take a great deal of dilligence to arrive at. If a REALTOR does ALL their work and can properly support their suggested market price, it provides an undeniable basis of strength in negotiations.

That is what I provide my clients with.

I dont put signs up to have them float around for months on end just to see if I get any action. This isn’t fishing.

If you want a smart, hard working REALTOR that will REALLY work in YOUR best interests, give me a call or email me.

This is my passion and I pride myself on doing it right.

POSTSCRIPT: This reminds me of a home I went to view – a good old GRAPEVINE listing. The woman who was trying to sell her house was one of the nicest people I’ve ever met, and she was doing a terrific job of cleaning her house and making it welcoming. We asked her what about her slightly- high price is justifiable. Her Answer? ” Well theres no justifying it, its because some guy down the street didnt know what he was doing and underpriced his unit by about 25K.”

Think about that for a minute. Not only did that man LOSE 25K that he should have gotten in a free and efficient market, but now about 5 other Grapevine’s on the block were all stuck with no negotiating basis for their house! Not a strong one atleast! Whoever wants to sell their house out of the remaining 5 is going to have to say ” FINE, just take it, here is your discount”. What does that do to the remaining 4? You guessed it – a distorted market where inneficiency has caused them to LOSE MONEY.

Its a good thing good people like the Founder of our Senators Dr.Bruce Firestone is hiring a strong team of talented, young and good-hearted individuals to be the next round of REALTORS to work for Partners Advantage GMAC Real Estate and show this market what strong, independent and passionate people can do.