It's my home, it's worth more
Claude Daigle, one of my regular readers just sent an email to tip me off to a story in the NY Times. David Leonhardt reports on a seller in the SF Bay area who won't sell unless they get their price (even if it takes years!).
I've met similar sellers. They have a value in mind for their home that makes no sense in today's Charleston real estate market. When listing a home for sale in the Charleston area, a real estate agent looks not only at the prices of similar homes that have recently sold but also similar homes that are currently available on the market and will be competing for the same buyer's interest. The next step is to come up with a price range to offer the home for sale, at the low end of the range to sell as quickly as possible, at the higher end of the range to obtain the best possible price and in the middle for the best of both. The important point is that there is a good chance to actually sell the home somewhere in this range.
We've been very fortunate in the Charleston South Carolina real estate market not to see big price declines like many other markets around the country. But make no mistake, there is a lot of inventory available for sale and buyers really don't care if it is your home, if you want to sell, it is your house and could be their home.
I've just turned down a listing from unrealistic sellers. Another agent agreed to list the home for sale for what the sellers wanted. I don't think it will sell at that price and then you have to consider whether it can appraise at that value. In this case, I'd rather be the second or third agent they select to list their home after they get more realistic about the value of their home and decide to finally price it to sell.
The sad fact is that when you don't price it right at the beginning, you will eventually sell it for even less. Why, what's the first question every buyer asks when they look at a home? "How long has this been on the market?"
Thanks to Claude, enjoy the article, Be it ever so illogical: Homeowners who won't cut the price.