I’ve been speaking to some of my agents about pricing their sellers’ homes ahead of the market. That was an easy thing to do when the market trends were going up. Now that they are headed in the opposite direction I find that many agents do not want to have that conversation with their sellers.
Pricing ahead of the market as prices were increasing was almost a pleasure. “Mr./Mrs. Seller” the last home on your street sold for $305,000 last week, so with appreciation at 4% per quarter this year and the average time on the market at 100 days your home should sell near 318,000. GREAT! That was an easy conversation to have and meant that you could be the bearer of good news on almost every occasion.
Today the conversation is not so eagerly anticipated. “Mr./Mrs. Seller” the last home on your street sold for $280,000 100 days ago and the market is declining at a rate of 4% per quarter with an average time on the market of 180 days. That means your home should sell in the range of $245,000. OUCH! That’s a conversation most people want to avoid.
However, we are in the reality/real estate business and to indulge the fantasies of sellers to their own detriment is not in either of our interest. They want to sell, we want to help them sell and ultimately be paid at closing for our efforts and knowledge.
It’s still a tough conversation to have with most sellers. Especially for a group of people who care about their customers and clients the way these guys do.
I know we all look forward to changing the conversation as foreclosures slow and prices level off.
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