Tim Bradford - AMMCorp.net

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A FORMULA FOR DISASTER IN A FRAGILE MARKET PLACE:

This post is something that is very well written, despite it been directed to Realtors.  I believe home sellers need to read this because they control the ultimate pricing of their home.   Pricing a home based upon what you WANT instead of where the market is at today, can be a mistake that could cost you time an money.  As said in the post, some Realtors will list homes based upon what you WANT.  Ask yourself, if they are working as the professional that you want working for you.  

OVER PRICING HOMES = HIGH INVENTORY + LESS SALES + DESPERATE SELLERS = CONTINUED HOUSING CRISIS: A FORMULA FOR DISASTER IN A FRAGILE MARKET PLACE!!!  

We MUST do in-depth research before we price properties!!! ....and we MUST price properties as if our lives depend on it.(...because they do!) If we don't face over-pricing head on, we will see the inventory levels climb like never before! Not only that, the desperation seen and felt by huge numbers of sellers that we witnessed during the downturn in 2008 will likely re-appear! In many markets there are still great numbers of desperate sellers.

DO THE RESEARCH!

    OVER-PRICED HOMES = HIGH INVENTORY +  MORE DAYS ON MARKET + LESS SALES + DESPERATE SELLERS = CONTINUED HOUSING CRISIS.

In my last blog post, I mention the above formula to the umpteenth agent who said he would take an over-priced listing but would schedule a reduction in the agreement in 30 days or 60 days. There are still huge numbers of real estate professionals who do not understand the importance of correct pricing---and we direct the whole real estate market; or at least we are supposed to!

In my last blog post "HOW DO YOU HANDLE A SELLER WHO WANTS YOU TO OVER-PRICE THEIR HOME ?..." I was amazed at how many agents feel it is ok to over-price a listing "for a short time like 30 days" ...let me remind you all that the best time to sell a listing is in the first 2-3 weeks on the market! Over-price it and you miss the best selling time!!!

Even a small amount over the correct price of a home will keep it on the market for too long! We can not afford this in this housing climate; people are desperate now (and more will get there)....but there are buyers out there and they are looking for bargains, even here, where the average income usually very high.

As a community of professionals who are looked to, by most homeowners, for our guidance and expertise, we MUST not over price homes. We need to take a stand NOW before we slip again into the abyss.

This may seem evangelistic to a lot of you but it is the basic truth: If we all take one listing with even a small of amount of over-market pricing, look at the impact! Guess who is in charge here?...We are and we MUST do what we can do to bring the housing market back to some normalcy.

 PLEASE TRY TO UNDERSTAND THE URGENCY AND IMPORTANCE OF THIS! DO NOT OVERPRICE HOMES IN THIS MARKET OR WE WILL NEVER GET OUT OF THE CRISIS!!!

Paula I. Hathaway, LBA, Prudential Douglas Elliman

Top Producer, Diamond , Gold and Chairman's Circle Awards


Tim Bradford
Ohio Mortgage Banker LO.007173.000/ NMLS 250013
Cell: 216.324.8113 Anytime
www.GetAMortgageNow.com or www.Go2Apply.com
www.OhioHomePath.com or www.OhioRuralHomeLoans.com

Serving the Ohio Realtors and Home Buyers and Home Owners
Comment balloon 3 commentsTim Bradford • February 06 2010 08:57AM

Comments

Tim:  Actually, if the sellers, or even Realtors, think that they control the price of their homes... they are both wrong.  And if it ends up that way... which often leads to a very long time on the market... I contend that it is the inexperience of the Realtor that is responsible.  And remember... I say that, being a Realtor.

The appraiser and the comparables should determine the price of the home... mainly because if it cannot appraise for a certain price, it cannot "close" at that price... unless it is either a cash sale, or a sale that is fully seller-financed. 

Just my thoughts... my two cents here.  By the way... the value of the "two cents" in my comment is supported by current comparables as far as the value of what this Realtor (me) has to say... LOL.

Posted by Karen Anne Stone, Fort Worth Real Estate (New Home Hunters of Fort Worth and Tarrant County) over 7 years ago

Interesting take, Tim (& Paula.) Overpricing may satisfy the seller for a minute - until the months start passing.  Unless the agent wants to spend an undue amount of resources promoting  an overpriced home, it sits there.  This not only frustrating to both sellers and agents, but increase area stats for DOM. This can discourage other potential sellers from vesturing into the market place.

Posted by Steve Kantor, Best Agent Business - Virtual Assistance (BEST AGENT BUSINESS) over 7 years ago

Karen,   Thanks for the Value you added to my comments and the post itself.   In the industry, we all know that some Realtors "Buy Listings" by taking them overpriced.  Hopefully, sellers will see that as well. 

Posted by Tim Bradford, NMLS 250013 over 7 years ago

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