Homeowner's Alert For Selling Your Home In Today's Market

There’s this old saying that most people want honesty as long as it’s not honest. Honesty that people don’t want to hear they usually take as criticism. Unfortunately for sellers living in today’s buyer’s market this is an honest wake up call.

Some agents are claiming that they can get more for your house than what the current market value indicates. Appraisals are based on recent comparables and set the value of your home. It's true that condition and upgrades will make a slight difference but usually not to the tune of 10% or higher. We have a real concern that we’ve been expressing the past 6 months over agents that are “buying the listing” which means telling you what you want to hear rather than what reality indicates. Placing a home for sale on an already crowded market for as little as $10,000 over value to as high as $200,000 over value does not help you at all!  When a seller allows this over inflated price they are effecting their competition too. Neighbors may thank you as homes, which are priced much lower than yours may sell faster as other agents show their homes before your own. Also it will make it more difficult to sell your home as appraisers use the new comparables of those recently sold homes.

Appraisers usually use the 3 most recently sold homes and match them size and type wise to your home. They make adjustments up or down based on your home’s condition and features. The lender is the one choosing the appraiser, not the seller. The lender is going to protect the bank’s interest as they are actually the buyer. Remember people don’t own the homes until they pay the bank in full.

Sometimes it’s not the agent’s fault. Homeowners often don’t want to hear the truth and ignore all comparables and all reason. Often they insist on the property being listed at their asking price. Some homeowners will shop around and go with who ever will accept taking the listing at their asking price. Pricing is everything! Honesty may hurt but in the end it will save you frustration and wasted months as the home languishes on the market.

We know some agents are telling perspective clients that since we are moving into “Spring Time” and the “Busy Time of the Year” that they can obtain higher offers for their homes. The truth is appraisals are based on the last 6 months and in today’s market more so the last 3 months.  Our current inventory in many price ranges sit at 11 months or longer.  With all this inventory there's little hope that prices have increased in most ranges. Home prices continue to trend down in most price ranges since June of 2007.

In today’s market why not change the thinking of buyer’s beware to seller’s beware. Some agents want your home listing so they can attract new buyers in hopes of selling them homes other than yours. They too know that your home is overpriced yet they take the listing to get their name out in the community and attract new clients. We know this sounds harsh but we are not trying to be the agents that are hurting your chances of getting your home sold and moving ahead on your journey in life. We must alert the public to become aware of what’s going on around them. We don’t like seeing people frustrated and remaining in a stagnant position in their life. Our goal is to see people move ahead and prosper in all areas related to home ownership. For us it’s not about the almighty commission check but about doing what’s right!