The Villages Florida Area Real Estate: We MUST Have Under-Priced Our Home!!

We MUST Have Under-Priced Our Home!!

Not the Actual Home!You probably have had this happen at some point in your career, although perhaps not in this most current market downswing.  Sellers prepare a property for sale listening intently to their Realtor regarding staging tips, de-cluttering, accommodating buyers' requests for showing times, and ultimately establishing a price point for the listing.  In fact, the price point is confirmed by a second and third agent, all of whom are in general agreement. 

Showing activity is brisk during the first two days that the property is on the market, and a full price offer is received.  Not only a full price offer, but one with a qualified buyer, no less!  And what is even more impressive is that this qualified buyer actually has some cash on hand and will be putting down about 25% of the purchase price (pretty rare in my market). 

Immediate horror ensues on the part of the sellers.  "We priced it too low!" they exclaim to one another. "We never should have listened to the Realtor." "I remember when Billie got . . ."  "The one up the street sold for $10,000 more, and ours is much nicer [of course]."  "We should have increased our list price by $20,000 so we had some room to negotiate!"  "What should we do?  We can't accept this." 

What was interesting about this scenario is that the sellers were not mine.  They were a buyer referral from another area in Connecticut, and I was showing them properties to buy when the offer came in.  It was a very interesting perspective to be commenting to them on this situation and not having them as my client on that side of the deal. 

Needless to say, after much deliberation and thought, the sellers decided to accept the offer.  What they were not able to readily understand is that they had priced the property exactly where it should have been priced, they prepared it properly, and they were the beneficiaries of extraordinary timing.  The right buyer happened to be looking at the right time; nothing more, nothing less. 

 

Chris K. Canfield

REALTOR®, ABR, CRS, e-PRO, GREEN, MRP, SRES 

Coldwell Banker Residential Brokerage

2890 E. Skyline Drive, #250

Tucson, Arizona  85718

 

 

Mary-kay Canfield and Chris Canfield ActiveRain ProfileE-mail Chris and Mary-kay Canfield

 

 

Comment balloon 72 commentsChris Canfield • September 19 2010 12:55PM

Comments

Very interesting. You guys have such a tough job - seems like you can never win and someone is always second guessing you.  Glad this one worked out for you.

Posted by Debbie Gartner, The Flooring Girl & Blog Stylist -Dynamo Marketers (The Flooring Girl) about 8 years ago

Thanks Debbie, We do win, on occasion.  : )  I am just glad that I was able to help the agent who referred this client to me.  I saw the property listing on the MLS when it came on the market, and I thought "Wow, good job!  Priced right, staged right; hopefully this one will sell."  It is so nice when your clients actually listen about how the "little things make a difference" when it comes to selling your home.

Posted by Chris Canfield, Homes for Sale in Oro Valley and Tucson, Arizona (Coldwell Banker Residential Brokerage) about 8 years ago

Chris~ 

RIGHT ON! As you point out, " Needless to say, after much deliberation and thought, the sellers decided to accept the offer.  What they were not able to readily understand is that they had priced the property exactly where it should have been priced, they prepared it properly, and they were the beneficiaries of extraordinary timing. ..."

Posted by . 4Terra Land Brokers .. 828-776-0779 Asheville NC, What's Most Important to YOU? Call(828)-776-0779 ( REAL ESTATE RESOURCES & NETWORK ) about 8 years ago

Thanks Jane Anne - It is funny how when I list a home and get it out to the world quickly, sometimes my sellers fret because there are so many showings right off the bat (in a "bad" market) that they feel they must be underpriced (especially when their friends tell them "Well, I never got that many showings!" when listed with some other agent).  Unfortunatley, The right buyer doesn't always happen to be looking at the right time!

Posted by Chris Canfield, Homes for Sale in Oro Valley and Tucson, Arizona (Coldwell Banker Residential Brokerage) about 8 years ago

Chris ~ So sad to admit it, but I was one of those rookie Realtors who usethought a home that sold in a week was under-priced. That is, of course, before I realized that all of my listings were overpriced! I am very clear now (with my sellers) that a home selling in a few days was properly priced and it proves that your first buyers are your best buyers. I had a buyer at an open house two weeks ago that is placing their home back on the market after 'wiggling' out of a perfectly good purchase contract. Their home sold in a week and they felt they were selling for too low...they plan to place it back on the market at a higher list price. How do you rate their chance of selling?

Posted by Chris Dugger, Louisville REALTOR (Real Estate Marketplace - Louisville KY) about 8 years ago

Oh My, Chris, I fear for those sellers!  I can just see in two months they will be kicking themselves for "letting that one get away."  The worst part is that when the house goes back on the market, buyers will then think "there is something wrong with that house--must have failed inspections," and IF they come to take a look, they will probably figure "now that they lost one buyer, they will be desperate to get another."  Keep an eye on the listing and let us know what happens in the end, will you?

Posted by Chris Canfield, Homes for Sale in Oro Valley and Tucson, Arizona (Coldwell Banker Residential Brokerage) about 8 years ago

Chris, thank you so much for putting this in writing! Too many sellers and buyers are operating out of fear. It is wonderful to have seller clients who take our staging and pricing advise and win!

Joyce

 

 

Posted by Joyce Brown (Keller Williams Realty) about 8 years ago

Couple of times each year my buyer clients have the opposite thing happen - we find the right property, research comps, put in an offer and...  its accepted!  Not without some pain and anquish on the seller side, usually, but a fair offer presented with facts will sometimes get accepted.

Buyer's remorse sets in for just a few moments, until we review the facts.  Then we move on to celebration.

Posted by Jeanne Dufort, Madison and Lake Oconee GA (Coldwell Banker Lake Country) about 8 years ago

Good job explaining to your buyer/ seller that he priced it right.  Right buyer at the right time  is a matter of luck sometimes, but the home being priced right got the offer.

Posted by Linda Jandura, Realtor, North Carolina Buyer & Seller Specialist (Raleigh Cary Realty) about 8 years ago

Hi Chris,  Congrats on this seller getting a full price deal !  So many automatically think it must be bad pricing when a full price offer comes in !

Posted by Bill Gillhespy, Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos (16 Sunview Blvd) about 8 years ago

That's strange - I've never heard of a full price offer being a bad thing. Usually sellers are happy to receive a full price offer....Very strange - where do you live again? :)

Posted by John Cobb, REALTOR - Warner Robins Georgia Homes for Sale, Subdivisions, Foreclosures, Real Estate, New Homes (Fickling & Company) about 8 years ago

I always tell my sellers that all my marketing complete with great photos will be up and running immediately, consequently this might happen, if we're lucky. Still, I wonder if they have that thought in their minds!

Posted by Joetta Fort, Independent Broker, Homes Denver to Boulder (The DiGiorgio Group) about 8 years ago

There is simply no such thing as an under-priced listing (a topic which I've covered before).  If a home is marketed correctly and priced at, or below, it's true market value, it will sale for it's market practically every time.  If it was "under-priced" you'd have multiple offers coming in the day it hit the market.

Posted by Roger Johnson, Realtor - Hickory NC Real Estate (Hickory Real Estate Group) about 8 years ago

I think this happens a lot.  Properly priced homes in great condition sell in just about any market.  We have done our JOB properly if the home sells quickly at or near asking price.  Sellers tend to forget that if it had been priced over the market, showings would be reduced, offers would be reduced (if any come in at all).

 

I've heard it before.  They agree with our assessment, and you can be darned if you do, darned if you don't.  If you get a full price offer in days, you priced low. If they don't agree and want to price higher for "negotiation room" and get no offers, it's your fault.  ;)

Sellers need to remember that in order to get the opportunity to negotiate, they have to first get buyers in the door.  ;)

A full price offer in days doesn't mean priced too low.  It means priced just right.

 

 

Posted by Lori Fishkind, Realtor (Reliant Realty) about 8 years ago

Chris -- the house was obviously priced correctly and staged to perfection.  It's only natural for sellers to react that they underpriced their house when they receive a quick full price offer.  Sellers need to realize that overpricing often results in getting less than if the house was priced correctly in the first place.  They will not get the overpriced $$$ as the informed buyer will not offer full price.  Even if they did somehow get that elusive overpriced offer, the house would likely not appraise out.  You're also correct about the right buyer being there at the right time. 

Posted by Barbara Altieri, REALTOR-Fairfield County CT Homes/Condos For Sale (RealtyQuest/Kinard Realty Group, Fairfield and New Haven County CT Real Estate) about 8 years ago

It is always amazing to me that nothing is ever right in the mind of a seller.  When good things do happen, they don't believe it.  Yes, good stuff can happen in this market with the right approach and professional assistance. 

Sounds like they had the right listing agent.  Chalk one up for the good guys.

Posted by Mick Michaud, Your Texas Lifestyle is Here! (Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107) about 8 years ago

Thanks for the great comments everyone!  I think most sellers don't expect to sell quickly, no matter how great their Realtor is, so when it does they start to question . . . And of course, what the folks around the water cooler have to say doesn't help!  : )

Posted by Chris Canfield, Homes for Sale in Oro Valley and Tucson, Arizona (Coldwell Banker Residential Brokerage) about 8 years ago

I listed a condo for $110k a few years back.  When a neighbor asked for the list price, I told her, and she angrily told me that it is worth at least $150k.  I explained to her that if she were to purchase it, she could pick up a fast $40k in equity.  Needless to say, she didn't even consider putting her money where her mouth was.

I've had to use this same concept with an agent or two who have accused me of under-pricing.  (They didn't purchase those properties either.)

Posted by Tim Klingman, President (North Shore Homes, Inc. (Milwaukee, Wisconsin)) about 8 years ago

It is a psychological situation, sellers want to be able to negotiate and FEEL that they got a good deal, removing that by pricing correctly and preparing the home for sale and acquiring a full price offer did not give them the opportunity to obtain more. It happens in reverse when a buyer makes a low offer and it is accepted without negotiation, it makes the buyer feel they could have got it for less when in fact realization may have just set in or a  number of other scenarios that made the seller just accept this is what I am going to get so accept it. It is why we all like to buy things on sale, rather than pay full price.

Posted by Nick & Trudy Vandekar, 610-203-4543, Tredyffrin Easttown Realtors, Philly Main Line (Long & Foster Real Estate Inc 610-225-7400) about 8 years ago

My opinion is that it's only under priced when you receive multiple offers within the first 48 hours.

Posted by Dan Jasmer, Changing the way you look at real estate (Coldwell Banker Residential Real Estate) about 8 years ago

I have also had seller and buyers with this issue, they choose to accept/put a full price offer due to correct pricing etc it gets accepted and they then wonder if they could have gotten more/ it cheaper. You cant win with that and some people always second guess themselves and us. At least they have it sold and in this market that is a whole lot to be grateful for!

Posted by Vanessa Stalets, REALTOR, Brentwood TN Homes, Real Estate (RE/MAX Elite) about 8 years ago

I'd say their listing agent did an excellent job! Unbelievable, that you just can't make people happy. I just wonder how many of the sellers of competing listings in their area wish they were them?!?

Posted by Jamie King, Sandusky, OH (Hoty Enterprises, Inc.) about 8 years ago

Hi Dan, What about when you receive multiple offers within the first 48 hours that are all way under asking?  : )  This would be more common in Connecticut.  Everyone wants that great listing, but they don't want to pay "full price."

Posted by Chris Canfield, Homes for Sale in Oro Valley and Tucson, Arizona (Coldwell Banker Residential Brokerage) about 8 years ago

It's funny that the sellers complained that their home actually sold because they did everything right! With so many homes languishing on the market for months after multiple price reductions, you'd think that the sellers would be happy. I guess there's just no pleasing some people . . .

Posted by Jill Banks,, South Jersey Home Stager (Happily Better After Room Redesign & Home Staging) about 8 years ago

Geez...  You just can't win...

Posted by Tiffany Wilson, SFR, First Time Home Buyers & Investors (eReal Estate Corp) about 8 years ago
I have just always used the rule that if you receive multiple showings and/or offers within the first 2-3 days it might be under-priced. But I also have heard of a ton of agents out there doing this on purpose to get into a bidding war and then they end up getting over asking anyways. I'm not so sure how I feel about this and would prolly never do it, but it's def being done out there.
Posted by B B about 8 years ago

It's funny how sellers get so distraught for doing the right things ... pricing the house right, cleaning, de-cluttering. And then along comes an offer! How dare they!

Posted by Cynthia Larsen, Independent Broker Serving Sonoma County, CA (Safe Haven Realty) about 8 years ago

Something I've added to my listing consultation is a discussion about how they (the sellers) will at sometime be upset with me and maybe even angry because:

  1. The house will sell quickly and they will think I suggested a price that was too low.
  2. The house will sit on the market for months with no offers and they will think I'm not doing my job.

I do this with a sense of humor and incorporate it into our discussion about pricing, prepping for the market and marketing. 

Posted by Betty Byrnes (F C Tucker/Tomlinson REALTORS) about 8 years ago

Great post - I'll be saving it if this comes up.  I once sold my own listing (after a couple of weeks on market) at full price.  My sellers wanted me to reduce my commission.  My reply was "How would you like it if your boss told you that you did a great job very quickly and then he proceeded to tell you he was going to reduce your paycheck because you did it so fast?"  They never said another thing about reducing my commission.

Posted by Judy Orr, SW & Near West Chicago suburbs (HomeSmart Realty Group) about 8 years ago

This post is so time sensitive to a similar situation I just had.  I put a pretty large home for this area on the market.  I pulled comps and told the sellers we should ask no more than x number for their home.  They are in a transfer situation, we didn't need too much room to negotiate, we needed to appeal to buyers right now, and the home was immaculate with tons of upgrades.  They agreed and it went under contract within 10 days.  Friends said, I thought you'd be asking more for that house.  Asking and getting are 2 different things. The appraiser said I squeezed everything I could out of the home and it's worth every drop, but no more in this market.  That's a good story to tell!  I always tell my clients that pricing it to wiggle isn't nearly as good as pricing it right and letting me sell it to other agents as a home worth it's price.

Posted by Nicole Fleming (FC Tucker Emge) about 8 years ago

Chris,

 The only properties that are selling are properties that are priced correctly as this one was. A nice post to read, something positive in a depressed market.

Posted by Robert Amato (Bob Amato of Empire Home Mortgage Inc) about 8 years ago

Hi!

As the seller's agent, I had that happen a couple of years ago with a really unique property that there flat out weren't ANY comps for.  It was a 65 year old fishing cabin, on a creek, with no well or septic, in a little subdivision that the county had long-since changed the "use" codes for. The good part was that it had been in the family for all those years, and there was nothing owed on it.

Luckily for me, the sellers had an appraisal, and even though it was a year old, it was SOMETHING. So that's where we priced it, and before it hit the MLS another agent in our office brought a near-full-price offer.  The sellers were ecstatic, and accepted it without much thought.  The buyer came in with a large down payment, offering a generous interest rate for the seller to carry the contract.

The seller's daughter called me and raked me over the coals for over an hour.  How DARE I sell her folks' vacation home like that?  Was this the way people in our county did real estate?  Take the first offer that came along without even advertising it, or putting it in the MLS????  Why was I trying to rip her parents off, and while we're at it, what makes me think they are a bank and should carry a contract?

No, her parents weren't doddering old fools.  In their late 60's/early 70's with ALL their faculties, having owned and sold a number of properties over the years.  They were very aware of how ridiculously fortunate we were to have snagged ANY buyer, at ANY price.  Apparently it was necessary for me to hear the "sharp" daughter out, which I did, and when I asked the parents if they wanted to go through with the sale, they said an unequivocal YES.  So we did.

Fast forward 3 years.  I got wind that the buyer defaulted (he defaulted on a lot of properties he bought during that time frame), so I called the seller.  Times are WAY different as we all know, and I really didn't want to list it knowing that it would be pretty hard to pull that off again, but I knew the "dad" had passed away and wanted to offer help where I could.

Son answered the phone.  Mom passed away too, and since I'd "made such a mess of it" previously (now referring to the default, I guess), he didn't want to have anything to do with me.  So he listed it with a firm and agent that is about 45 miles away, and when I talked to her she didn't know a single thing she ought to know about it.  Since she's a friend of mine, I did fill her in.  Oh, and it is now listed for $100,000 less than I sold it for, and it's pretty much languishing on the market...

While one might say that yes, it was a mess because they had to take it back, which cost a couple thousand dollars, still, they gained close to $50K on a property that they never bought or owed anything on, and they actually got it back in better shape than when they sold it (the buyers had done a lot of updating, new kitchen, flooring, etc).

You'd think I'd "learn" but I still suggest a price that might actually sell in a short period of time.  Go figure, I'm a glutton for punishment.

Victoria 

Posted by Victoria CB Trees, Principal Broker (Crater Lake Realty, Inc.) about 8 years ago

We have to stop and wonder about this system of selling real estate (and cars).

Why do people feel that they always need to negotiate?

Victoria's repossession story reminded me of a time when I sold a remote mountain cabin to a Mrs. Gumm. A year or so later I heard from the seller - Mr. Gumm had quit making payments and when the lawyer was finished with the foreclosure, she wanted to put it back on the market.

The next call was from the lawyer - "Hey Marte, guess who Mrs. Gumm really is?" As it turned out, she was Chevy Kehoe's "wife" - and I had to travel to Arkansas to testify at his murder trial.

Posted by Marte Cliff, your real estate writer (Marte Cliff Copywriting) about 8 years ago

This brings to mind a similar case of "seller's remorse" that happened to me about 3 years ago when the market was going crazy here.  The client had to sell, due to a traumatic divorce.  She couldn't afford her next mortgage payment, and the proceeds from the sale would be her only financial means of support until she could get back on her feet and become employed.  She followed my advice for prepping, staging and pricing.  My contractor went above and beyond on the prep work.  I personally helped her with the packing.  After we sold her home, with all its peculiarities, in 4 days, over asking and with a generous free rent back period, she told me she didn't think she could refer me to anyone else because she said I had sold her home "too fast".  I'm still shaking my head at that one.  I think sometimes sellers just need to deflect their fears and frustrations on us. 

Posted by Menlo Park Real Estate and Homes for Sale, WendeByTheBay.com - 650.504.0219 - SF Peninsula (Wende Schoof) about 8 years ago

Nothing more. Nothing less.  People will always speculate about what could've, should've, would've.

Posted by Charita Cadenhead, Serving Jefferson and Shelby Counties (Alabama) (Keller Williams Realty) about 8 years ago

What you're describing is classic "seller's remorse." Roger Dawson addresses this very nicely in his books on negotiating. I wasn't able to find an online article of his from that perspective, but he also addresses the risk when a buyer's first offer ia accepted:

Power Negotiators know that you should never say Yes to the first offer (or counter-offer) because it automatically triggers two thoughts in the other person's mind.

Let's say that you're thinking of buying a second car. The people down the street have one for sale, and they're asking $10,000. That is such a terrific price on the perfect car for you that you can't wait to get down there and snap it up before somebody else beats you to it. On the way there you start thinking that it would be a mistake to offer them what they're asking, so you decide to make a super low offer of $8,000 just to see what their reaction is. You show up at their house, look the car over, take it for a short test drive, and then say to the owners, "It's not what I'm looking for, but I'll give you $8,000."

You're waiting for them to explode with rage at such a low offer, but what actually happens is that the husband looks at the wife and says, "What do you think, dear?"

The wife says, "Let's go ahead and get rid of it."

Does this exchange make you jump for joy? Does it leave you thinking, "Wow, I can't believe what a deal I got. I couldn't have gotten it for a penny less"?

I don't think so. I think you're probably thinking

  1. I could have done better
  2. Something must be wrong.

Here's a link to that article. And a link to a nice on-line library of many of his articles.

I worked with a successful real estate investor who was a disciple of Dawson's. He prided himself on his negotiating skills. So he'd work on getting the seller to name a price--hopefully a very low price--for a property. But no matter how low the price, he'd always "flinch." (Link to Dawson's article on flinching.) Always.

He'd found out the hard way that if he immediately accepted the first number proposed by the seller--no matter how great it was--it was bad to say "yes." The seller would immediately figure, as Dawson suggests, that either he could have done better or something must be wrong. So there was always a bit of negotiating, a bit of discussion on the price, just so the seller would feel that he'd gotten a good deal.

Now, I'm not saying that that's always the best thing to do in retail transactions. It isn't. But you (and some of the other comments) very nicely pointed out the drawbacks and risks to coming to an agreement quickly.

Posted by Donald Tepper, DC area investor helping heirs of inherited homes (Long and Foster) about 8 years ago

This has definetly happened to us when selling our own homes.  However it is absolutely true that everything was just lined up.  We did everything we were suppose to do in the preparation of the home and priced it correctly.  Right buyer comes along and wammo!

Posted by Gary & April Greer, Real Estate Professionals (Century 21 Wright) about 8 years ago

This still amazes me when this happens.  As a listing agent you have done everything correct in getting a full priced offer yet you now are accused of under pricing.  Crazy.

Posted by Simon Mills (Mills Realty) about 8 years ago

A properly priced house is supposed to sell.

Over the years I have had two sellers (not my clients), maybe three, try to back out of my deal we had done with my buyers.

In one case the agent for the seller had to hold her seller's feet to the fire.

the other two caused me to call the sellers broker, a very experienced and pleasant to deal with lady. In both cases the situation was explained by telling the seller that the contract they signed was exactly that, a bona fide contract, and enforceable under Arizona State law.

Posted by Jon Quist, Tucson's BUYERS ONLY Realtor since 1996 (REALTY EXECUTIVES TUCSON ELITE) about 8 years ago

Building a strong case about the true market value during a listing presentation is the key to preventing this response by the seller.  I get the seller to agree to the price and even let them write it on the listing agreement.

Posted by Lucien Vaillancourt, Jacksonville Florida Real Estate (Native Sun Realty, Inc.) about 8 years ago

A properly priced house is supposed to sell.

Over the years I have had two sellers (not my clients), maybe three, try to back out of my deal we had done with my buyers.

In one case the agent for the seller had to hold her seller's feet to the fire.

The other two caused me to call the sellers broker, a very experienced and professional person.

 In both cases the situation was explained by telling the seller that the contract they signed was exactly that, a bona fide contract, and enforceable under Arizona State law.

Posted by Jon Quist, Tucson's BUYERS ONLY Realtor since 1996 (REALTY EXECUTIVES TUCSON ELITE) about 8 years ago

A good client of mine referred his friends to me to sell their home.  After meeting with them and discussing their options and motivation, we priced the home aggressively and they prepared if to near perfection.  Our first showing brought us an offer within 24 hours of hitting the market.  My referring client gave me a hard time about pricing it too low, but I was confident that his friends and I had priced it to best meet their needs.

While this home was still in escrow, an identical and nicely presented home next door came on the market for $35K more.  It sat, and sat, and sat until it was finally reduced to where we had been and eventually sold for the same price we did.  Four months vs. 24 hours.

I agree with what Chris said, "The right buyer happened to be looking at the right time; nothing more, nothing less. "  But you also have to maximize your pool of buyers to make sure that "right buyer" isn't turned away by being over their price point.  It may be worth foregoing $5000 to price a home at $200K instead of $205K, because there will be so many more people looking "up to $200K".

Posted by Lorelei Windhorn (Prudential Northwest Realty Associates) about 8 years ago

It's astonishing that when a client... buyer or seller... gets exactly what he/she wanted, right off the bat.. their instinct is often to think something is wrong.  Instead of thinking that everything is just right!

Posted by Chris Jenkins-Sarasota Realtor, "Expect Success" (PalmerHouse Properties) about 8 years ago

This is a fascinating psychological phenomenon.   Getting just what you ask for, right away, and you are not pleased.  I've had it happen, and they've gotten over it fairly quickly.   Don Tepper's story illustrates it well, but I am still an accurate pricer and still like to negotiate with my best offer.  I think the risk that you could offend either party with low balling is greater than a couple of thousand dollars (sour the transaction, make home inspections a nightmare etc.).   I also think that overpricing in this market so you can "negotiate" is a very dangerous game and could cost you a ton of time and money.  Not worth it.

Posted by Coral Gundlach, Real Lives. Not Just Real Estate. (Compass) about 8 years ago

What?  No 'Thank You' to the Realtor...I don't believe it!!!  You got to have thick skin to be a Realtor.

Posted by Kim Bartells, Result Driven Real Estat - Marketing Expert (TC Business Management, LLC - www.TCMandD.com) about 8 years ago

Its intriguing to me to come across this post today... as a similar situation happened to me late last week but instead of keeping the deal together my seller took his home off of the market. He said he wasn't prepared for it to sell so quickly... which is strange since he put in 4k in new flooring the previous week.

Posted by Erika Hansen, CRS (Coldwell Banker Mid-America Group) about 8 years ago

As an agent who prefers sellers to buyers, I have to agree that we Realtors are blamed for whatever takes place. If the home sells quickly because they listened to our good advice.."We should have priced it higher." If we don't get an offer/contract and closing quickly.."We dropped the ball!" Do I see a pattern here? How about "Thanks for doing such a great job for us!"

Posted by Linda George, Real Estate Broker/Owner, St Lucie County FL Real Estate,Waterfront, Acreage (Morningstar Properties) about 8 years ago

My very first transaction years ago had multiple offers the first day, I felt like I priced the home properly but had second thoughts when it had more than one offer. I have had this happen over the years and was fortunate to have a great managing broker that taught me to ask the question during the listing agreement, " if we price your home at market value and you do all of the necessary things to get your home ready and we see a full price offer in the first week, are you OK with that?" This has definitely helped when these quick offers come in.

Posted by John Marshall - FORE!, Specializing in Golf Course Properties (The K Company Realty) about 8 years ago

My in-laws hired a Realtor to sell their property at an agreed marketing plan and complained because the property sold quickly (one day) and felt the Realtor didn't do anything to earn the commission. They didn't realize how fortunate they were until the appraisal came back less than the offered price. The buyers had several subject to's and the appraisal was a key factor especially in a declining market.

When they stood firm on their asking price the buyer withdrew and eventually the home was sold at the reduced price after several months on the market. Whom did they blame for the first buyer's withdrawal, you guessed it, the Realtor? Only in America!

Posted by Kimo Jarrett, Pro Lifestyle Solutions (WikiWiki Realty) about 8 years ago

Ya know that old saying, "a bird in hand is worth two in a bush". I think it has been lost on some people.

These sellers should count their lucky stars they got an offer so quickly & for exactly what they wanted.

Posted by Sharon Sein (Sein Organizing Solutions & Home Staging) about 8 years ago

Once up on the time 4 to 5 years ago, I was pricing my listings by adding the annual percentage to the purchase price means 3-5 % each year, homes were selling in in few weeks some times in 3 -5 days had the full price offer on the table.

NOW what?

I really kan't tell what the right price is. Hope this nightmare is over soon.

Yeah I know I am dreaming of white Christmas.

Posted by Timo Yannopoulos, Buying and Selling Kansas City Homes (Platinum Realty Licensed in Missouri) about 8 years ago

You put it so eloquently ...."Not only a full price offer, but one with a qualified buyer, no less ... Immediate horror ensues on the part of the sellers.  That is exactly how people think when they get a full price offer too quickly.  Why can't people just be happy?

Posted by Karen Bernetti about 8 years ago

I like #28 Prepare the Seller for what could happen.  They may forget but at least you tried. Margaret C.

Posted by Margaret C. Taylor, St Marys/Calvert/Charles MD Real Estate Agent (Century 21 New Millennium MD) about 8 years ago

You priced it RIGHT, to sell!

Posted by Erica Ramus, MRE, Schuylkill County PA Real Estate (Erica Ramus - Ramus Realty Group - Pottsville, PA ) about 8 years ago

Chris:  We have not had that happen in this market, no, but a few years ago we had great sellers who did everything we asked of them and sold their home in three days.  I love this couple, they appreciated us and the great good fortune they had by selling their home so quickly.  Good luck with the buy side.  Carrie

Posted by Carrie Sampron, ABR SFR & Kathy Sampron (303) 931-3629 Highlands R (Home Smart Realty Group) about 8 years ago

Hi Chris -- Well said and great analysis.  In fact, this should be the goal: analyze thoroughly, prepare extensively and sell quickly.  Sellers often wonder this, but if the home is priced higher, sometimes there will be less traffic, or no offers, and if you miss the "flood" and then they "drip" in after wards, sellers almost universally end up with less, more carrying costs, etc.

Posted by Chris Olsen, Broker Owner Cleveland Ohio Real Estate (Olsen Ziegler Realty) about 8 years ago

I have had this happen to me, and it is annoying, to say the least. They doubt your integrity and make you out to be a liar who left money on the table. It is a really frustrating scenario. Instead of applauding your market knowledge and professionalism, they decide to never use your services again.  I choose my clients very carefully nowadays.

Posted by DEBORAH STONE (PACIFIC HOME BROKERS, San Diego, CA) about 8 years ago

What a strange world we live in! Good post Chris!

Vivian

Posted by Vivian Gilbert, ASP, RESA (Home Staging by Vivian LLC) about 8 years ago

Some time ago before I became a Realtor, my listing agent tried to list us 10Ks below comps. Having always been realty-minded and being seriously articulate about my knowledge of comps, I was adamant about the price. So when the first offer came in after a couple of days, we were trumphant. When that deal fell apart due to financing, we relisted just a shade higher but in line with comps. Another offer did come in at even better price in short order.

I guess the moral of the story is that the comps don't usually lie. If money was being left on the table (or in the bank of public opinion--thanks Phil) that would have been obvious before they signed the listing. I wish though that there was a patch for sellers remorse.

Lisa H.
Greater Toronto Area, Ontario

Posted by Lisa Hickling about 8 years ago

Chris: Good point and when I hear this I have to shake my head at the seller and give them the look!

Ty

Posted by Ty Lacroix (Envelope Real Estate Brokerage Inc) about 8 years ago

Isn't it funny how all the good advice their Realtor gave was disregarded as having influence because they got a quick offer. . . sounds like a dream situation that could have gone south.

Posted by Sedruola Maruska (Exit First Choice Professional Realty) about 8 years ago

congrats on your sale! Some parts of the country are seeing a higher demand for homes and faster sales. I wish that was happening in our market! Anyhow, it's interesting to explain how it works to the clients in the transaction and it's hard for them not to be biased when they are involved!

Posted by Sandy McAlpine, Search Lake Norman Homes For Sale - Lake Norman NC (RE/MAX EXECUTIVE) about 8 years ago

They probably never feel grateful for anything they have in their life either.

Posted by Lyn Sims, Schaumburg IL Real Estate (RE/MAX Suburban) about 8 years ago

Maybe sellers second guess the price because selling a house in a few days is not the norm and it's probably the largest $ transaction they will ever be involved in.

Posted by Steve Opacke (LI House Tours) about 8 years ago

They shoud be bowing to you.

Posted by Deborah Grimaldi, (401) 837-9633 (Albert Realtors) about 8 years ago

It also really works out well for a buyer when the home they find and see and love is priced right.  No need to negotiate, or have an offer rejected.

Posted by Claude Labbe, Realty for Your Busy Life (Real Living | At Home) about 8 years ago

Thanks everyone for taking the time to comment!  I have been out working with these buyers and haven't had time to read them all and comment individually.  As Claude wrote, "It also really works out well for a buyer when the home they find and see and love is priced right."  Why can't that happen with the houses that I am now showing to them?  And believe me, these are REASONABLE buyers! 

Posted by Chris Canfield, Homes for Sale in Oro Valley and Tucson, Arizona (Coldwell Banker Residential Brokerage) about 8 years ago

Wow. How does the saying go: you just cant please all of the people some of the time?  

I would remind them this "You hired this broker to sell your house, you agreed on the price that you would list it. He got you your price, quickly, and now you are angry that he did his job so well that you weren't stuck on the market for 6 months? In this market?"  

Also, didnt they sign the purchase contract? The nerve of some people! 

Posted by Jayson Holland, Jay Holland (Listings.com) about 8 years ago

Hi Jayson,  They signed the sales agreement AFTER this discussion.  The call came in while I was showing them properties (from their listing agent who had referred them to me to buy a home in my area).  : )

Posted by Chris Canfield, Homes for Sale in Oro Valley and Tucson, Arizona (Coldwell Banker Residential Brokerage) about 8 years ago

I had the same thing happen to me earlier this year and with a cash buyer who was from out of town on his househunting trip. We tried to price the house right where it should sell, stagged it etc. Sold in one day and the first comment was their friends thought I must have underpriced it (the seller picked the price from the market data I showed him).

Posted by Janice Styles-Hall (Coldwell Banker Prime Properties) about 8 years ago

You won't know if it was under priced because it's already sold. A listing gets the most showings in the third to fourth week, and at that time it may have sold at a higher price.

Posted by Bill Travis, Broker/Owner (Captain Bill Realty, LLC) about 8 years ago

This is a tough business. Sounds to me like the agent did a good job.

 

Posted by Wayne B. Pruner, Tigard Oregon Homes for Sale, Realtor, GRI (Oregon First) about 8 years ago

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