Well, how do you get the sellers to agree to a listing that is 5% less than what their neighbor got last summer? The sellers don’t “get it” yet.
Perhaps you can relate by imaging how you might price a car which you’re selling privately. The ideal listing price is the Kelly Blue Book trade-in value + 5% or 10%. The trade-in value is what the dealer would give you. Make sure you select “fair” condition, because that’s what the dealer uses. This way, you get more than the dealer would pay you, and your buyer pays less than the dealer would charge.
But, as my brother and husband are finding out, sellers advertise their cars for the much higher “private party” value. My brother did this also, and did not get a single call for his car (except from a pre-recorded auction type place). He ended up selling it to the dealer for the trade-in value as part of another purchase.
My husband has checked countless car ads, and finds that sellers have them priced at that too-high private party value. So he keeps looking.
This is the same that happens with housing, as buyers take their time to find the best deal, and sellers refuse to take less than the maximum imagined amount. And if they are not forced to sell, they will hold onto that imagined value, and possibly reduce by $5K increments. Only those who are really motivated will take a lower offer.
A couple in my neighborhood is getting ready to list their townhouse, and were told by their realtor that it’s worth $575K. Gee, then why are the other 2 for-sale units, listed at $550K, still sitting on the market? The realtor was checking the last closed sale, and not adjusting for a declining market. Maybe she told her sellers she could get them a higher price, just to get the listing. I get so annoyed that other people are prolonging this slide down! But I am powerless over them, right? This takes too much patience.