Give unrealistic sellers the ‘shock treatment’ | Bedford NY Homes

There’s an old saying that it’s best to be the first born, second spouse and the third listing agent. So whose fault is it when a property doesn’t sell?

There are thousands of reasons that cause listings to expire. An agent may do everything possible and the property still doesn’t sell due to lack of activity in that price range or location. Other times, the listing agent didn’t market the property adequately, or conditions under the seller’s control prevented the sale. In almost every case, however, the reason most properties do not sell is the price.

A major misconception

Many people, including a large number of real estate professionals, fail to realize that it is the buyers (and sometimes the appraisers) who determine the selling price, not the sellers or agents.

The stock market provides a good analogy for understanding this situation. Assume that an investor paid $100 for a share of IBM stock. Today that stock is trading at $60 a share. If the investor insists on getting $100 a share, he will have to wait to sell until the market conditions improve. Otherwise, if he must sell now he will need to reduce his price to $60 a share.

The same is true for the real estate market. If someone paid $225,000 for a home and today similar homes are selling for $180,000, the owner has the same choices as the investor in the example above: sell at today’s prices or wait for the market to improve.

– See more at: http://www.inman.com/2013/07/22/give-unrealistic-sellers-the-shock-treatment/#sthash.IKPvdyVR.dpuf

 

Give unrealistic sellers the ‘shock treatment’ | Inman News.

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