February 25, 2009 – Final Update

This property finally sold at $425,000.  It took almost 1 year from start to finish.  I believe strongly that had these sellers moved into the marketplace with the abundance of market data I presented to them, they would have enjoyed a quick sale, and most likely netted tens of thousands more on the property.

Why would I say that?  Well . . . because while they were “fooling around” trying to test the market, the market was declining.  They were “chasing down” the market.  You can not out run the market.  It cost them dearly.  The proof is in the graphic below.  Obviously for privacy reasons I have blocked out realtor names and property address.  I highly recommend Greg Swann’s article here.  

(Excerpt from Greg Swann’s blog) Typically, the seller starts out with the price too high, then tries to chase the market down with a series of price reductions — usually too little and too late.

Greg serves in the Arizona market, but his comments are relevant to our local market as well, and it is very well written.  It will give you a wonderful education and insight into what we now deal with as seller’s agents.

February 4, 2009 – still unsold
December 3, 2008 – still unsold
November 3, 2008 – still unsold
October 3, 2008 – still unsold
September 3, 2008 – still unsold
August 2, 2008 -still unsold
July 2, 2008 – still unsold
June 20, 2008 – still unsold

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Below is a update of my recent article on the importance of properly pricing your Rockland County NY property for sale. At this writing (8.2.08) the sellers have now reduced their property by $90,000 and the property is STILL sitting there, and we are now in August, one of the slowest market times of the year, plus after that fast approaching the fall market leading up to the winter months (another slower time). The agent who listed that property so high did a grave disservice to the seller. This is one of my biggest pet peeves about our industry. Agents who knowingly take an overpriced listing just to have inventory. It’s so wrong.

I’m not saying I wouldn’t take a listing and test market it for a couple of weeks at a particular price point, but my job is to DAILY monitor the market to see how my client’s properly is positioned and advise them accordingly. If we don’t see 2-3 showings each week for the 1st 2 weeks, and certainly if no offers are on the table, the price is usually the culprit.

Sellers are not paying me to sweet talk them, they are paying me to help them sell their home.

Is your Rockland Listing Overpriced?

Overpriced Rockland County NY listings

June 20, 2008 – An update to the saga below: The property referenced in the article below STILL HAS NOT SOLD. It’s been almost one month.

Overpriced Rockland County NY listings

June 20, 2008 – An update to the saga below: The property referenced in the article below
STILL HAS NOT SOLD. It’s been almost one month.

That’s the truth.

SOAPBOX MOMENTS !

Last week I met with a local resident who wanted to sell his Rockland home.
As usual, I did a very thorough “Market Trend” Market Analysis. These
competitive market analysis take 4-6 hours to prepare and leave absolutely
no doubt in the mind of the analyst (that would be me) exactly what the chances
are of the seller’s ability to sell a commodity that is in great supply right now.
I can predict quite accurately how much time, and within a few thousand dollars the expected
price point at which the property will sell. There is an old saying . . .

Facts and Figures don’t lie, but “people do”. “Overpricing a listing is good for nobody,”
agrees Rick Landuyt, e-PRO®, an associate broker at Coldwell Banker Schweitzer Real Estate
in Troy, Mich. I whole heartedly agree with this mindset. This is why I always come prepared
when I meet with a potential client and SHOW THEM what exactly is happening in the Rockland
Real Estate market. Unfortunately, this poor seller did not listen to my advice . . . he called in
another realtor, who no doubt puffed him up with whatever drivel sounded good to this naive seller. So …. the seller “drank the kool-aid” and bought the big lie that “oh your property will sell very high because _________” blah blah blah.

Why would a broker take an overpriced listing anyway?

Mr. and Mrs. homeowner let me tell you a big secret that most real estate brokers
won’t tell you. The reason that they will take an overpriced listing, knowing full well
that they don’t’ have a prayer of selling it anywhere near the price they listed it for follows.

You see, when the calls come in on that overpriced gorilla,
the caller will exclaim “what are you crazy”… I don’t even want
to see that house. And all of a sudden that “realtor” will inform the
caller that they do have other properties that are available in the
price range they want to see.

BINGO! You, Mr. Overpriced Listing Seller person have just been used. But you didn’t even know it. This scenario will play out over and over and over. Within a few weeks you WILL begin to realize that you were lied to. But now its too late because you signed a 6 month
(or more) listing. They waxed eloquent about their marketing expertise and their database,
and their thousands of agents, but here your house sits … lonely and waiting for some poor
slob to come see it, let alone make an offer on it.

So . . . there you have it Mr. Overpriced Listing Seller …. this is why a Realtor (who in my
opinion is not even a Realtor) would take an overpriced listing. I’m sick to death of the
unprofessionalism I see day by day around me.

I can tell you Mr. Seller what you want to hear (wow your house is worth gold,
when in my heart I know its not) or I can tell you the truth.

The TRUTH is that there is a glut of inventory in the Rockland Real Estate market. Why in
the world would a qualified buyer prance through an overpriced listing when there are countless
well priced properties begging for offers?

In case you’re thinking/wondering if the Realtor “thinks” so highly of your property that you’ll
certainly have the chance to get more…think again . . . Even “if” a buyer did come through
and offered you your inflated price, 97% of these properties are financed through a bank.
Guess what Mr. Overpriced Listing Person …. you now have to get through the arduous task
of the appraisal. The appraisers will use the very same criteria and statistics for their analysis
as I do. At some point, you will hear the truth, but now it may be too late, for your once
enthusiastic buyer will walk away. This is the stuff that real estate horror stories are made of,
and our market is rife with them.

So … I think/hope you get my point. PLEASE if you are serious about selling your investment,
PLEASE do business with someone who will tell you the truth and support that truth with
facts and figures.

Don’t think I’m not tempted Mr. Seller to do what my competitors do . . . I’m human too.
I have bills to pay too . . .but I have something more important to maintain and that is INTEGRITY.
I can put my head on the pillow every single night knowing that I’ve dealt honestly and in truth.
And one final thought so you don’t think I’m being too frank . . . none of this is really your fault,
Mr. Overpriced Listing Property Person . . . why ???

YOU’VE BEEN LIED TO. You didn’t know any different, because after all . . the realtor said
it was so, and you believed them.

Oh…ps. I get asked quite often “how many listings do you have” . . . My answer is this. It’s not
how many listings do I have….how many do I not have? How many of my listings have sold.
My answer is just about every single one. There are a couple of exceptions to that … those small exceptions, in each case are because the seller did not listen to pricing advice supported by facts
and figures readily available to all. In the case mentioned above, the seller rewarded my honesty
with choosing a realtor who lied to him. I, (like many sellers and agents gone before me) have had to learn to hard way . . . overpriced listings are a total waste of time, energy and money.

and p.s.s. – I must hasten to add that not all realtors conduct their business this way. The
professional agents will, of course, layout the truth for their clients. Common sense tells us that
business will not thrive in an environment of deception, and referrals will be nonexistent.

Angela Fish Chan
Broker/Owner, Rockland County Real Estate

Originally posted May 25, 2008