What About the Housing Market?? I think...

[cmoscinski]

I disagree with you ARAGX6. As a Realtor I personally would not even take the listing if I knew it was ridulously overpriced just to get the listing.

It would be a waste of my time and money to market it, knowing it would not sell. What kind of business is that?

[middle-aged mom]

Originally Posted by cmoscinski

I disagree with you ARAGX6. As a Realtor I personally would not even take the listing if I knew it was ridulously overpriced just to get the listing.

It would be a waste of my time and money to market it, knowing it would not sell. What kind of business is that?

I too am a Realtor and I see agents who know better, take seriously over priced listings all the time. In fact, a few of the most over priced homes in my area are owned by agents and they are 25% off the mark.

[cohdane]

The vast majority of "ridiculously overpriced" homes have a realtor's sign in their front yard. By definition that means plenty of realtors are ready and willing to represent (and enable) delusional sellers.

[badman70]

Originally Posted by middle-aged mom

I too am a Realtor and I see agents who know better, take seriously over priced listings all the time. In fact, a few of the most over priced homes in my area are owned by agents and they are 25% off the mark.

Middle-aged mom,

I have seen very over priced homes as well. So I am curious on how an experienced agent handles making an offer on a home that may be 10-15% overpriced.

I'm sure the answer depends on a lot of factors, but I'm just wondering on a very top level basic situation.
Do you come in 30% below and try to neg. up to real market value? Or perhaps just show comps and make a 1 time final offer at market value?
Something else?

[middle-aged mom]

Originally Posted by badman70

Middle-aged mom,

I have seen very over priced homes as well. So I am curious on how an experienced agent handles making an offer on a home that may be 10-15% overpriced.

I'm sure the answer depends on a lot of factors, but I'm just wondering on a very top level basic situation.
Do you come in 30% below and try to neg. up to real market value? Or perhaps just show comps and make a 1 time final offer at market value?
Something else?

It's a good question. It's all about timing.

It's impossible to defend a homes asking price based upon delusions.

Knowing the owner's motivation is critical. There are still plenty of sellers out there doing the " let's test the water" routine and they don't care if they sell or not.

There are sellers on the verge of foreclosure who persist in the belief that by asking more, they will get more and are entitled to make a profit .

And then there are buyers who really don't know the comps and perceive everything as being overpriced and lowball, hoping to hit pay dirt.

Most closed sales, in my area, are within 5% of the most current ask. The most current ask in somecases is 20%+ away from the original ask, therefore the road to closure is typically incremental price adjustments, over time.

I guess what I am trying to say is it's unlikely the facts are going to make much difference to someone, who at the moment, is so off the mark, in price.
If you have the time, wait it out or look elsewhere. These way out of the ball park priced homes do a terrific job selling the competition.

[badman70]

Originally Posted by middle-aged mom

It's a good question. It's all about timing.

It's impossible to defend a homes asking price based upon delusions.

Knowing the owner's motivation is critical. There are still plenty of sellers out there doing the " let's test the water" routine and they don't care if they sell or not.

There are sellers on the verge of foreclosure who persist in the belief that by asking more, they will get more and are entitled to make a profit .

And then there are buyers who really don't know the comps and perceive everything as being overpriced and lowball, hoping to hit pay dirt.

Most closed sales, in my area, are within 5% of the most current ask. The most current ask in somecases is 20%+ away from the original ask, therefore the road to closure is typically incremental price adjustments, over time.

I guess what I am trying to say is it's unlikely the facts are going to make much difference to someone, who at the moment, is so off the mark, in price.
If you have the time, wait it out or look elsewhere. These way out of the ball park priced homes do a terrific job selling the competition.

thanks Middle-aged mom for your answer.
It was informative.

[cohdane]

I only just saw this and figure all you realtors already read it. However, it could be an eye opener for some sellers and buyers:

Chicago home sales plunge -- chicagotribune.com


At the very least, it helps to have some official numbers and not just speculation.

Bottom line: Sellers need to wake up and smell the coffee. Or, take their homes off the market and stop wasting everyone's time.

Good luck to everyone. Hold onto your hats.