education about price declines

[SD Realtor]

It is the sellers setting prices. You can market all you want, you can show them all the data you want. Many people have to go through the process of watching a home sit for many weeks/months before they realize that the home they own is not immune to the downturn. Furthermore there are many realtors who will indeed provide reenforcement to incorrect pricing simply to get the listing. Even in my case I have a listing now where my recommended price was a good 20% less then the actual list price. In this case the sellers are a friend of someone close to me so I took it. There have been all of 3 showings in over a month. There are other cases where I took an overpriced listing and told the sellers flat out I will take your listing but it is overpriced in my opinion and I am skeptical of how much activity you will get. Other times I don’t take them. As a realtor sometimes you take it simply to get the traffic and hopefully other leads. If you do not others will. If nobody takes it, the owner will still find resources to put it on the market such as a Jeff Karchin or other more automated or discount realtors who will do it.

Also if someone does buy it who is to say who is wrong?

I am not trying to support an incorrect pricing strategy. Yet a very small percentage of posters here go to listing appointments and see the same repetitive behavior and hear the same things over and over again. I passed on the Surf Crest listing that came on a few weeks ago because of the pricing. The guy wanted to list at 1.4M with me. At least the Assist to Sell agent got him down some but not as much as it should be in my humble opinion.

The psychology of both buyers and sellers is much different then many of the logical perceptions owned by many who post on this site. People here are confounded by sticky sellers and just as confounded by buyers on the market who continue to buy homes albeit at lower numbers.

It is frustrating but eventually it will play out.

SD Realtor

[Raybyrnes]

SD Realtor

What I see playing out. I believe that with realators under pressure to get listings and create activity (not necessarily productivity)sellers are still pushing them to lsit high or they will walk.

What eventually happens is that the listings will expire. Newer agents who felt pressure to list will begin to exit the industry and the more seaasoned agents who know what they can sell a house for will elect to walk away because it is not worth their time to list a unit that they know will not sell.

The seller will have to face the fact that the home has a lower value and will be back in the offices of the more experienced agents at some point who will continue to reccommend prices where they feel they can move the product.

Pendulum will ultimately swing back to those most capable in the area of sales.

[Raybyrnes]

SD Realtor

What I see playing out. I believe that with realators under pressure to get listings and create activity (not necessarily productivity)sellers are still pushing them to lsit high or they will walk.

What eventually happens is that the listings will expire. Newer agents who felt pressure to list will begin to exit the industry and the more seaasoned agents who know what they can sell a house for will elect to walk away because it is not worth their time to list a unit that they know will not sell.

The seller will have to face the fact that the home has a lower value and will be back in the offices of the more experienced agents at some point who will continue to reccommend prices where they feel they can move the product.

Pendulum will ultimately swing back to those most capable in the area of sales.

[Raybyrnes]

SD Realtor

What I see playing out. I believe that with realators under pressure to get listings and create activity (not necessarily productivity)sellers are still pushing them to lsit high or they will walk.

What eventually happens is that the listings will expire. Newer agents who felt pressure to list will begin to exit the industry and the more seaasoned agents who know what they can sell a house for will elect to walk away because it is not worth their time to list a unit that they know will not sell.

The seller will have to face the fact that the home has a lower value and will be back in the offices of the more experienced agents at some point who will continue to reccommend prices where they feel they can move the product.

Pendulum will ultimately swing back to those most capable in the area of sales.

[Raybyrnes]

SD Realtor

What I see playing out. I believe that with realators under pressure to get listings and create activity (not necessarily productivity)sellers are still pushing them to lsit high or they will walk.

What eventually happens is that the listings will expire. Newer agents who felt pressure to list will begin to exit the industry and the more seaasoned agents who know what they can sell a house for will elect to walk away because it is not worth their time to list a unit that they know will not sell.

The seller will have to face the fact that the home has a lower value and will be back in the offices of the more experienced agents at some point who will continue to reccommend prices where they feel they can move the product.

Pendulum will ultimately swing back to those most capable in the area of sales.

[Raybyrnes]

SD Realtor

What I see playing out. I believe that with realators under pressure to get listings and create activity (not necessarily productivity)sellers are still pushing them to lsit high or they will walk.

What eventually happens is that the listings will expire. Newer agents who felt pressure to list will begin to exit the industry and the more seaasoned agents who know what they can sell a house for will elect to walk away because it is not worth their time to list a unit that they know will not sell.

The seller will have to face the fact that the home has a lower value and will be back in the offices of the more experienced agents at some point who will continue to reccommend prices where they feel they can move the product.

Pendulum will ultimately swing back to those most capable in the area of sales.

[takilma]

I believe the banks are setting some of the unrealistic prices, too. This is a bit off topic for this thread, but…..

I have been trying to purchase a TH as a short sale. The bank’s loss mitigation specialist assigned to this stated this morning that a price previously agreed upon, which my realtor and I do not feel the market currently supports, (offer made in December), was a loss to them of 33K versus what they would get for it as an REO. HUH??? I made the only offer, for a place on the market for 5 months, and they’re turning it down. Two other units in the complex, that are REOs have fallen out of escrow, and they were priced much better. Other units, some REOs and short sales, some not, can’t even get offers. DOM averages well over 90. This is a middle class complex in Escondido, with current prices all well under 300K.

SD Realtor, what do you think is going on with this bank?

Thanks.

[takilma]

I believe the banks are setting some of the unrealistic prices, too. This is a bit off topic for this thread, but…..

I have been trying to purchase a TH as a short sale. The bank’s loss mitigation specialist assigned to this stated this morning that a price previously agreed upon, which my realtor and I do not feel the market currently supports, (offer made in December), was a loss to them of 33K versus what they would get for it as an REO. HUH??? I made the only offer, for a place on the market for 5 months, and they’re turning it down. Two other units in the complex, that are REOs have fallen out of escrow, and they were priced much better. Other units, some REOs and short sales, some not, can’t even get offers. DOM averages well over 90. This is a middle class complex in Escondido, with current prices all well under 300K.

SD Realtor, what do you think is going on with this bank?

Thanks.

[takilma]

I believe the banks are setting some of the unrealistic prices, too. This is a bit off topic for this thread, but…..

I have been trying to purchase a TH as a short sale. The bank’s loss mitigation specialist assigned to this stated this morning that a price previously agreed upon, which my realtor and I do not feel the market currently supports, (offer made in December), was a loss to them of 33K versus what they would get for it as an REO. HUH??? I made the only offer, for a place on the market for 5 months, and they’re turning it down. Two other units in the complex, that are REOs have fallen out of escrow, and they were priced much better. Other units, some REOs and short sales, some not, can’t even get offers. DOM averages well over 90. This is a middle class complex in Escondido, with current prices all well under 300K.

SD Realtor, what do you think is going on with this bank?

Thanks.

[takilma]

I believe the banks are setting some of the unrealistic prices, too. This is a bit off topic for this thread, but…..

I have been trying to purchase a TH as a short sale. The bank’s loss mitigation specialist assigned to this stated this morning that a price previously agreed upon, which my realtor and I do not feel the market currently supports, (offer made in December), was a loss to them of 33K versus what they would get for it as an REO. HUH??? I made the only offer, for a place on the market for 5 months, and they’re turning it down. Two other units in the complex, that are REOs have fallen out of escrow, and they were priced much better. Other units, some REOs and short sales, some not, can’t even get offers. DOM averages well over 90. This is a middle class complex in Escondido, with current prices all well under 300K.

SD Realtor, what do you think is going on with this bank?

Thanks.

[takilma]

I believe the banks are setting some of the unrealistic prices, too. This is a bit off topic for this thread, but…..

I have been trying to purchase a TH as a short sale. The bank’s loss mitigation specialist assigned to this stated this morning that a price previously agreed upon, which my realtor and I do not feel the market currently supports, (offer made in December), was a loss to them of 33K versus what they would get for it as an REO. HUH??? I made the only offer, for a place on the market for 5 months, and they’re turning it down. Two other units in the complex, that are REOs have fallen out of escrow, and they were priced much better. Other units, some REOs and short sales, some not, can’t even get offers. DOM averages well over 90. This is a middle class complex in Escondido, with current prices all well under 300K.

SD Realtor, what do you think is going on with this bank?

Thanks.

[jpinpb]

alarmclock – I think it is a great idea. Send it to the owner, realtor and bank REOs. Of course get a PO Box. I like it. Realtors generally want listings and don’t really want to give bad news to the homeowners. The homeowners need a good dose of reality supported by facts. The honest realtors try to tell it like it is and lose the listing. Maybe attach some good news stories while you’re at it, just in case they have been living under a rock and aren’t following what’s going on. Need an assistant, let me know. Maybe grab the homeowners by both arms, shake them a couple of times, a good slap in the face and tell them to get real. That might work, too 😉

[jpinpb]

alarmclock – I think it is a great idea. Send it to the owner, realtor and bank REOs. Of course get a PO Box. I like it. Realtors generally want listings and don’t really want to give bad news to the homeowners. The homeowners need a good dose of reality supported by facts. The honest realtors try to tell it like it is and lose the listing. Maybe attach some good news stories while you’re at it, just in case they have been living under a rock and aren’t following what’s going on. Need an assistant, let me know. Maybe grab the homeowners by both arms, shake them a couple of times, a good slap in the face and tell them to get real. That might work, too 😉

[jpinpb]

alarmclock – I think it is a great idea. Send it to the owner, realtor and bank REOs. Of course get a PO Box. I like it. Realtors generally want listings and don’t really want to give bad news to the homeowners. The homeowners need a good dose of reality supported by facts. The honest realtors try to tell it like it is and lose the listing. Maybe attach some good news stories while you’re at it, just in case they have been living under a rock and aren’t following what’s going on. Need an assistant, let me know. Maybe grab the homeowners by both arms, shake them a couple of times, a good slap in the face and tell them to get real. That might work, too 😉

[jpinpb]

alarmclock – I think it is a great idea. Send it to the owner, realtor and bank REOs. Of course get a PO Box. I like it. Realtors generally want listings and don’t really want to give bad news to the homeowners. The homeowners need a good dose of reality supported by facts. The honest realtors try to tell it like it is and lose the listing. Maybe attach some good news stories while you’re at it, just in case they have been living under a rock and aren’t following what’s going on. Need an assistant, let me know. Maybe grab the homeowners by both arms, shake them a couple of times, a good slap in the face and tell them to get real. That might work, too 😉

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