One of the most frustrating things Realtors have to deal with in real estate when competing against other agents for listings is “bidding up” prices. Many times, the Sellers are not interviewing Agents, the are auctioning Agents. In other words, they simply select the Agent who tells them the highest price to list at. They will ignore the more experienced Agents and go with one who tells them what they want to hear…… and those agents are laughing all the way to the bank! Want to know how? Check out this video at www.sellwithvince.com/pricingVideo.html.
Flat out, if you purchased your home in 2005 or 2006, it is not worth more today than it was back then……..no matter what a wishful thinking, inexperienced Agent tells you. Facts are facts. In a declining market, pricing your home correctly is more critical than in any other market. In 2004, you could overprice for example and simply wait a few months for the market to catch up to your price. Not so today!
In 2008, not only are you making payments and carry (taxes, insurance, maintenance costs), but your value is in decline. A $400,000 home in 2005 is now worth $300,000 for example. Most of the loss or “crash” has happened in the past 12 months. Say this seller listed at $370,000 six months ago when the home was worth $350,000. As they begin to reduce the price, so dropped the market in conjunction. Unless that seller cut the price to get in FRONT of the price curve, he will be in trouble. Six months ago, he should have been at $350,000, today, six months later, this same Seller is at $320,000 when he should be at $300,000. Had he priced right from day one with an experienced Agent, he would be $50,000 ahead of the game, plus the carry.
Bottom line is this: The more reputable, experienced, HONEST Agent that tells you the truth, will net you more money than taking the advise of an ignorant or inexperienced Agent when it comes to pricing your home. Look at each Agents Market Analysis. See HOW the Agent came up with the price. Look at the FACTS. Sometimes the experienced Agent will give you the HIGHER price. What is important is that you look at the material, see how much work and analysis the Agent did to come up with the price. Most important, use your brain and not your heart when pricing!
Happy Selling!
Filed under: Housing, Mortgage, Property Taxes, Real Estate, Realtor, Tampa, Tampa Bay, Vince Arcuri | Tagged: Agent, florida, home price, home pricing, house, house price, market, Real Estate, Realtor, Realtors, realty, Tampa, Tampa Bay
