Late in 2018 I had a home listing that was in the sweet spot in the real estate market in St. Louis. In a popular community, tastefully updated, and priced right, I was very happy to bring this property to market. The first day I had the property listed for sale, there were 20 or more showings. Of those 20, I got feedback from about 14 agents the next day, and of those 14, 10 said they thought the price was too high.
Priced For Sale Too High?
How could this be? I was comfortable with the area, and I’d been in many of the houses that had sold. I even priced the property a little lower than I thought it could go for because there is a natural bias when you are listing a home to the high side. All real estate agents don’t think alike, and there’s a small clue in the number of feedback responses. There were 6 other real estate agents that had been to the house, and they didn’t respond at all.
Feedback, Especially Price, Isn’t black or white.
You see, while there were 20 real estate agents in the property that day, there were also likely 20 different motivations for why they were at the property. They could have been previewing their own upcoming listings, and they could have been looking at homes with buyers who weren’t really motivated. Here are some of the reasons that the feedback could have been wrong.
- The real estate agent doesn’t know the area well. I’ve yet to meet an agent that knows the exact price every house will go for in the entire metro area. Oddly enough, there are times when I am in a neighborhood 4 or 5 times in a month, and then I might not be back for years.
- Buyer has no interest in property. Sometimes, your buyer doesn’t like the house. There’s nothing wrong with that, but rather than try to explain something so abstract, it’s much easier to put price is too high. That pretty much closes all possible debate.
- An offer is coming. When your buyers are preparing an offer, and you submit feedback on a listing, what are you going to write? If you are somewhat competent, you sure aren’t going to say the house is priced for sale too low. It would be natural for the negotiation to say the house is priced too high. To me, the best answer here, if I were a buyer’s agent, would be to not say anything at all.
House Went Under Contract
The second day the house was listed, I got three offers to purchase. Two of them were above asking price. One of the offers was from an agent who did not answer any of the feedback questions, one offer came from an agent who said the price was too high, and one offer came from an agent who answered the other questions but not the one on price.
Your Situation Is Different
To all those nervous sellers reading this after their home has been on the market for months with no offers, I do have some bad news. Houses priced right sell fast. Houses priced too high don’t receive offers at ask, if they get any, and the offers are usually not great. If you’ve had your home on the market for a long time, and you are constantly getting feedback that the house is priced too high from your real estate agent, and other real estate agents, it’s probably priced too high. Each house is different, and every listing situation is different. That’s why it’s best to start the process of selling your home with a real estate agent from Deerwood Realty.