One thing that will never change is, that a house is worth more to its owner than it is to anyone else. When it’s time to sell, a lot of vendors initially over price their properties. To get a sale at these levels is often difficult and usually the market has to catch up with their prices before the property sells.
This is all right when the market is busy and prices are rising. However, when the market is stagnant or falling this idea can ruin their marketing campaign.
When asked for a price reduction by their agent they often say,
“I won’t lower the price but ask anyone who’s interested to make an offer. I will seriously consider all offers”
Time goes on, their agent dutifully markets their property but no offers appear. Everyone gets very frustrated.
What they don’t understand is the following.
Genuine buyers (who usually are very knowledgeable about prices, because they have seen everything available on the market) who come to view their property, have expectations of seeing a property that is consistent with the advertised price. When they see that property has not got the features that they are expecting a property at that price should have, they obviously don’t want to buy it. It’s not what they are looking for and thus they don’t want to make an offer.
The right buyers for the property, those who would make an offer, never get to see the house, because the house is advertised out of their price range.
In Hamilton at present, the market is very price sensitive. Houses that have the wrong price on them are soon found out by agents and buyers and are quickly ignored in the market place. Usually if they don’t sell after the initial new listing interest in the first week or so, they seem to be for sale, for extended periods of time. Before they finally sell, their prices progressively drop to the levels which are expected by the buyers.
The unfortunate thing is, that had their prices been right initially, when the best buyers were available, they would have sold for much more than the eventual price, that they actually sell for, four or so months latter.
December 15 2010 10:08 pm | Sellers of Real Estate