Wednesday, August 6, 2008

Your House Isn’t Nice Enough For A Buyer To Pay Too Much!

You sound like a normal Seller when you say, “We have to get $X.XX”, or “I don’t need to sell.”, or the classic uttered by just about every Seller on the Planet, “We’re not going to give it away.” In every instance, you are right as it is your prerogative as the home owner. Let’s put it in perspective.

If you “don’t need to sell”, and are unwilling to price it right, then it is best if you take your home off the market and wait for the recovery … whenever that may be. If you “have to get $ X.XX ” remember, Market is what Market does. If you can’t/won’t price to sell in this Market, take your property off the market to reduce the inventory glut. It will serve you better in the long run as it will help us recover quicker so you can meet your needs later.

Finally, remember that “giving it away” is relative to the Market. If you are selling at Market value … regardless of the price … you aren’t giving it away. If you are 30% below the Market value you are giving it away and you don’t need us to do it.

Market is set by a willing Buyer and willing Seller. In a “tipped” market like we have today, a “Buyer’s Market”, the advantage goes to the Buyer. A Seller may be willing to sell for $300,000, and the Buyers are only willing to pay $250,000. With no meeting of the minds the property remains unsold. Agents don’t set value. They can price a property with a Seller, rightly or wrongly, but Agents do not set market value, Buyers and Sellers do.

Competition is fierce for Buyers these days and Buyers are smart. The National Association of Realtors tells us that the average Buyer spends eight hours on the Internet …
Northern Nevada MLS … before contacting an agent. Buyers often know the numbers better than the agents showing them property since Buyers are focused on their market segment and agents usually work the full market spectrum. With an abundance of information available on the Internet Buyers are able to do extensive research on available and sold properties.

Don’t try to kid your agent about your value … you are only kidding yourself. If your agent takes your listing too high they are not doing you a good service. Are they taking it because they have no other listings? Are they taking it because they don’t know any better … a newbie or unfocused (has a day job) agent? Or worse, are they taking it to employ one of the oldest tricks in the book … get the contract and start beating you up week after week after week for a price reduction. Regardless, when pricing your home, “to thine own self be true.”

Our Advice: Quit playing games. There are Buyers all over our market … cautious, tentative, knowledgeable, thorough, ready, willing and able Buyers. If you want to sell, your only alternative is to price it right. Consider the amenities you have, assess the market you are moving to, and price accordingly. Good maintenance and upgraded features may get an edge in the market so your home sells instead of another, but it doesn’t yield the additional tens of thousands of dollars it has in the past. Buyers should figure out what they want in a home, find the properties that qualify, and make an offer. With interest rates creeping up, almost one percent in the past three months, they are losing buying power as you wait. Prices are good, values are better … take action.

The last dumb out-of-state Buyer has gone home. They aren’t coming to town and paying too much because they have fallen in love with the area and panicked about not being able to buy a home. The good news is that they are buying homes and cash is flowing. Get in the flow. Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472,,

1 comment:

Anonymous said...

Finally someone has the courage to stand up and say what needs to be said!