Showing homes recently, I had the opportunity to view some great homes. My clients are first time home buyers and interested in grabbing a deal. This means that we are, for the most part, viewing short sales, well-conditioned foreclosures and well-priced, privately owned homes.
But There Was This One Home…
It slipped through the filter. This one home snuck onto our tour list that I would contend, argue, and complain is over-priced by about $80,000. Remember, we’re talking first-time home buyer priced homes here! Not some multi-million dollar palace where $80k is the price of the kitchen…
Don’t get me wrong, the home showed VERY well. It was in great condition, nicely staged and was begging for a new owner. But the price…eeek!
But That’s Not All! There’s More…
Our MLS has an automated feedback system that will pester you three days straight if you don’t respond. Seeing a collection of these feedback requests in the inbox, I proceed to respond. My feedback for this overpriced home was that it was, well…. overpriced.
Within 5 minutes of sending the feedback, I received the following note from the listing agent, “Owners say make an offer.”
Really? How about getting the home priced appropriately for this marketplace? How about making a reverse offer? Why put the onus of your home’s out of whack pricing on the buyers?
The asking price of this home, compared to its likely sales price, reminds me of an analogy.
We all get fliers or mailers to our favorite clothier. Say I get a flier from a suit shop that is touting a 3 day, 50% off sale on everything in the store. Timing is right, because I need a new suit, so I go check out the inventory.
As I approach the store, I start thinking about my suit measurements. Let’s say I’m a 42 regular/long kinda guy. Once I decide that I need a simple, textured, black suit, I’m going to head to the racks that carry 42 regular/long sized suits. After all, 41 or 43 is too small and too large, respectively. I go through all of the correct sized suits only to realize they don’t have my simple, textured, black suit.
Ultimately, I leave the store disappointed because I could not find the suit I wanted in the size I wanted.
The same is true for overpriced listings. Homes priced higher than the market will bear will cause many buyers to scratch their heads as to what the agent and sellers are thinking. Many other buyers won’t even view the home because the price is so far outside the realm of possibility.
The Take Aways
You WILL run into some homes that make you scratch your head and ask, “Is this home really for sale?”
This question will come as a result of either lack of quality or too high a price. The screaming deals and homes in hot areas
will do not last long, so be prepared to make an offer when you see THE home
Buyers are looking for a great deal. This means great price and great quality. With the number of homes for sale in the marketplace dwindling, quality homes are not lasting long on the active market. Buyers that are looking for the same home will likely compete to earn the ability to purchase your home, should your home have both price and quality.