When I first started in real estate, I was hungry for business. I did everything I could to appease sellers, including taking listings where the seller determined the listing price. The plan was to get as many listings as I could, at whatever price to get my name out there. What. A. Mistake.
Now, (seasoned and all the much wiser,) education for sellers is the most important part of the process. Overpricing a property can often lead to a lower final sales price, painstaking long market times and frustrations from both seller and listing broker.
Understanding the complete picture of the current marketplace by not only the broker, but also the seller creates a smoother, simpler and easier home sales process.
How does a Realtor® buy a listing? Simple really. The broker will tell the seller that the property is worth an inflated price, and that they can get more for it if they list with them. The seller lists with that broker only to find out a few weeks later that the listing agent is asking for a dramatic price change. This was not in your best interest.
"Homes in Palatine without price changes sell for 94.6% of actual list, where homes with price changes sell for 93.6 % of list price. What does this mean exactly?"
On a home priced at $400,000 that should have been priced at lets say $375,000; the final sales price is $351,000. If the home was priced at $375,000 to start where it should have been, it may have sold for $354,750, or $3750 of savings to the seller. Not to mention the longer market time, hassle of keeping the property always showing ready and the feeling of frustration.
The overpriced listing is not in the sellers’ best interest. The data shows that the more accurate the list price, the more money the seller will net on the sale.
Be knowledgeable about the market. Know exactly what is realistic for a sales price for your home.
Holly Connors is a senior broker and founding member of @properties. For more information, Holly can be reached at 773.862.0200 or email@example.com. You can also visit her website at hollydanielsonconnors.com.