All It Takes Is One….

A fellow broker, commenting on my post “Game Changers”, wrote the following:

I think with your experience in the biz you should know that you get these situations where the female spouse just “loves” a property and price doesn’t even become an issue. They either have always loved “that house” or “that builder” and there’s little or no negotiation.

See now, I think that’s total bunk. It promotes the idea that sellers have only to wait for the right buyer, i.e. a spouse that just loves the place so much that the price doesn’t matter, or a couple who really, truly “gets” your house. It is exactly that kind of thinking that leads people to sit on the market for months and months, years and years, even, in one astounding case, DECADES, waiting for..sigh…that “right buyer”.

The truth is, if one couple comes along that is willing to pay $5,300,000 for your house, there are undoubtedly others just like them. And if no couples come along after 20 showings and/or one month on the market? You’re over-priced. There is no “right buyer” at the price you are asking. Just ask the people entering their third year on the market! Oh wait, no, don’t ask them. They’re lost in a real estate miasma.

See link: 41 Jone Park Drive

5 thoughts on “All It Takes Is One….

  1. You took me too literally with my comments on a previous post. Price is always an issue and a deal is always negotiated.
    However, just because ONE buyer is prepared to pay $5.3million for a home doesn’t mean there will be others that will pay the same. How many times have we seen houses turn over quickly because of say a sudden relocation and the second price is nowhere near the first.

    But, you are right about everything

    • TellItLikeItIs:
      Yes, but dammit, I can’t think of any of these examples you cite! We’re all aware of properties bought in bidding wars and then sold “too soon” afterwards, for a lot less. But can you name a non-bidding war address that was bought in haste, and sold at a loss shortly thereafter?

  2. This whole conversation makes me want to see a comparison of original listing prices versus actual sales prices for house that were initially priced far above market and sat for 1, 2 or 3 years+ before selling at a reduced price. If the sellers start 50-100% above market, do they end up selling for a better (still above market) price? Once carrying costs are deducted, would they have been better off pricing to market on day 1, or is artificially inflating the price actually “crazy like a fox?”

    • Anonymous:
      No, unfortunately, gross over-pricing, as opposed to plain ol’ over-pricing, is absolutely ruinous for the sellers. The most damaging aspect is the seller isn’t able to recognize a truly great offer when it’s presented and therefore rejects it, only to deeply regret this decision many months down the road. Let’s say, for instance, your house is worth “around $3M” but you put it on the market for $4.5M. In the first week, a buyer bravely offers you $3.2M! You naturally reject this “low” offer, in fact, you are positively scornful of it, and you instruct your broker to let the other broker know that you are “insulted”. Two years go by and your asking price is now down to $3.295M and you finally accept an offer of $2.9M. Your misguided asking price has cost you two years and $300,000. We brokers see this exact scenario played out every single day.

    • Anonymous:
      Come to think of it, that’s a good idea! I haven’t wanted to embarrass sellers, but tomorrow I will present a sample of at least ten properties that were over-priced and took at least one year to sell. The listings-link will show addresses only, no owners names.

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