The other day I was talking with a seller about his house. It had been on the market for a few months and he had only a few showings. He wanted the house sold which makes sense since he had listed for sale with a licensed Realtor. According to the comps in the neighborhood, the house appeared to be priced at the top end of the pricing for the neighborhood. The house was completely redone with fresh paint and new flooring. He had installed new granite counter tops and appliances in the kitchen and the bathrooms had been updated. The MLS had the house highlighted with 20 pictures, the max, and it had been emailed to many agents and buyers alike. The Realtor had had a broker’s open and open houses but there were simply no offers. He was frustrated and was considering renting the house until the market improved.
Currently, we have a low level of inventory with low interest rates. Many people consider us in a sellers’ market so I am assuming what he met to say is that he wants to wait until the property has appreciated to a higher value. Because while the market is good, we are still not making crazy speculative buys that have no merit.
I informed him that if the property was not showing and it was being marketed, which it was, that the price was too high. To which he responded, “Well anyone can give a property away.” Regardless of what the area comparable show the market is rejecting the price of the home. As I reviewed the other properties in the area, it appeared that the homes in the addition that were for sale may not have been updated to the same level as this gentleman’s property. And while the seller and Realtor could justify the list price, the buying public was choosing something else. If the property is not priced correctly, buyers will not waste their time looking at it, believing the seller is unreasonably.
I personally do not believe that you list a house too low. If you do, the buyers will know and multiple offers will force the price of the property back up to fair market value. I have personally witnessed this several times especially with foreclosed homes that are listed below value.
If you have questions regarding real estate, please feel free to contact me at 405-213-2992 or visit my website http://www.sandiwalker.net