Problems with Listing Prices Too High

Posted by Brad Officer on Monday, June 13th, 2011 at 6:26pm.

You drive past these homes everyday on your way to work.  You see them everywhere you go in Jacksonville and Ponte Vedra.  It's the home for sale that's been for sale F O R E V E R.  The only thing that has changed is usually the real estate company's sign.

So why hasn't the home sold?  Is it the market?  Is it the condition of the home?  Is it the location?

No, none of the above. It's your REALTOR. Your REALTOR's job is to market and sell the home in the fastest time for the highest dollar the market will bear.  In order to market and sell you must create demand.  To create demand the home must be marketed accordingly with the correct photos, videos, advertising online and off, and pricing aggressively.  If all is being done correctly and showings are still not happening or showings are happening and no offers are coming in:  It's the price and it's your REALTOR's fault for agreeing to continue trying to sell at a price too high.

Problems with Listing Too High:

  1. No/Low Showing: Without a good amount of quality showings, your home will never be sold.
  2. Chasing the market: Once you finally do start reducing the price, you are already probably too late as the next price drop will probably be too high in a declining market.
  3. Stigma: REALTORS and home buyers start to label properties.  Your home becomes "that home", or "they are dreaming", or "that ones been up forever", etc.  New buyers are steered away from the listing by the REALTOR.
  4. Days on Market: I see homes on the market for over 700 days.  I instantly look at the history and see they started at $2.9mm and have steady dropped to $899k.  I then instantly think, it's obviously not worth that either.
  5. Never Ever Sells: Home owner agrees to stay in the house they don't want to be in.  They decide to "wait out the market".  Which often means they may have to wait another 5-10 years before they can get what they think the home is worth.

Unfortunately, I've been guilty of starting a listing price too high - I'm human.  However, I almost always move quickly to correct the situation as I don't want to become "one of those".

So I ask:  Which scenario would you like???

Option 1:  Price aggressively, show often, accept contract, move on.

Option 2:   Price high...just in case, price drop, price drop, price drop, and a year later, price drop, price drop price drop.

Thank you in advance for Sharing!

 

Give us a call at 904-234-5196 if we can help you buy or sell real estate in Jacksonville, FL.

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Listing information last updated on October 22nd, 2019 at 2:08am EDT.