I love your list, and think I have heard just about every one one it.  It's tough to sell in a down market.  But the last thing you want to do is chase the market -- because you'll end up losing even more!

Sandy - you are right on the money.  It seems like seller delusion is something us Realtors have in common . . . in all markets.  It is hard to stomach a lower price than you hoped your property was worth, but putting it on the market for too much is only going to hurt the Seller.  Your list of excuses was classic and familiar!  Thanks for sharing because now I don't feel so alone.

Just like Richard, I think I've heard most of these during my own listing appointments.  I call it the "But-My-House Syndrome." 

Great list, but the sad thing is - sometimes the reasons WHY those houses sold for less ARE true. But unfortunately - they're still the sales comps and that's what really stinks. The appraisers don't know the 'insider secrets' like neighbors do.

I love the "I want to get what he's getting" line.  Ahem, dear Seller, if it hasn't sold for 9 months, then he isn't getting that!  Great post.

Sandy

Excellent post and right on target.

Good luck and success.

Lou Ludwig

Sandy, it can be tough to try to get sellers to lower their expectations. But if that is what has to be done, then that's what has to be done to get the place sold.

Hi Sandy, I love this post.  Eventhough we have seen this market for a few years now, a new seller is unaware and full of "buts".  I really liked your list, this was a great read.

Excellent points. Sellers forget that it is not about price but rather the value!

Richard, It is tough to sell in a down market. And I sympathize with owners that have lost their life savings in their homes.  However, to sell it is imperative that they are priced properly.

Chris, Yes, I think we have all heard many of these. So, if we can help to educate these owners...  sometimes it's just too much for some to bear, emotionally and in their pocketbook.

Angela, So true.  Often these reasons are valid, however the appraisers do not take most of those things into consideration - you're so right!

Jennifer, I love that one too, and I have heard that a couple of times. So true, if that neighbor has been for sale for 9 months, then he's overpriced.

Lou, Thanks, in working with sellers we've got to help them see that an overpriced listing can be a recipe for disaster.

Malcolm,  I agree. Often it takes time and patience for a seller become educated to what the market is doing today.

Sandy I deal with buyers and they are now even expecting a Kitchen sink in their CRUD HUD house!  ^_~

OMG Sandy, have you been listening at my door?  I'm trying right now to get a seller to accept a great offer but less than he wants.  He's made just about all of those same arguments.  No wonder the market is stalled.

Great blog!

The word active has as many letters in it as the word reject. When you think about it, the actives are the rejects so those are not the ones to be used by the Seller or Agent for comparision.

Great Summary, Sandy.    I am going through this with a Seller right now...  wanting to list for $180K in a $150K cookie-cutter subdivision.    Thanks for commiserating!

Hi Mary, I loved the way you put it...a new seller is full of buts.  So true!

Gary, It's truly about getting the house to appraise based on comparable sales in the area and getting it to closing.  Isn't it?

Bruce, Oh my goodness... they want a kitchen sink too?  What will they think of next?

Marian, I think so often we hear the same sentiments from our sellers. And I think they are frustrated and understandably so. But we don't create the market, all we can do is interpret the market for them. Best of luck to you in bringing your transaction together.

Michael, Great point - well taken.  A sellers house is worth more to them, but they aren't the buyer - LOVE iT!

Sandy the ultimate appraisal is what a buyer is willing to pay you.  Your house may be nicer but there is usually more value in a home that needs updating in my opinion.

This graph usually helps me overcome any objections...

Sandy what a great post for sellers in many areas to pay attention to and see if they recognize themselves.  Times are truly trying and so painful for sellers to wrap their heads around when needing/having to sell their current residence and buy less.

I feel that agents who don't stress the hard facts of the current market (with empathy for the seller) are doing a disservice to the sellers.

As you say, I'm sure I'd feel the same way if I were trying to sell my house but hope I would become realistic very quickly and price correctly for the market.

Thanks for allowing the re-blog and hopefully sellers will find it helpful in our area.

Sue of Robin and Sue

Sandy - Great article!  You're absolutely correct that education is key in getting sellers to understand now vs. then pricing. Unfortunately, some just won't get why the excuses so commonly used just don't matter to the buyer or - more importantly - the appraiser. Being upfront and open from the start helps a lot.

Thank you for sharing.

I would be surprised if I didn't hear those things.  "My home is always better than the neighbors...." :-)

Cheryl, The actives are the rejects - hmmm, I never really looked at it like that. Interesting thought.  You are so right in that those for sale are not the ones a seller should compare their home to.

Fred, Ouch, that could hurt. That could be putting that seller in a very difficult situation.  Overpricing in a cookie cutter neighborhood could crush him.

John, It's true that a house will not sell for more than a ready, willing and able buyer will pay for it.

Haris, I loive the chart. Great tool to use with sellers, as so many people are visual learners. You have laid it out perfectly.

Robin and Sue, It can be quite difficult for sellers to thoroughly grasp the concept of what overpricing can do to them. And you're right that not remaining firm as an agent can be a detriment to the seller.

Bruce, So often the sellers just don't want to hear it right away.  But, it's our job to get the word out to them by showing them exactly what the market is doing.  I've known some that have gone out and shopped for an agent that would price their house the highest.

Geoff, I think I would be surprised also, if I didn't hear one of two of these justifications.

These are CLASSIC... I run into this all the time.

I didn't take a listing recently because the seller said most of those things, and his neighbor sold for seriously higher at the very peak of the market. He didn't want to listen to me or look at my comps TODAY not 3 yeas ago.

I Love "Figure 34"

These are classic lines... but the sad part is when realtors say the same sorts of things about their own homes.  I'd laugh if it weren't true.

The neighbor has had his on the market for 9 months at $250,000.  I want to get what he's getting.

That's a classic as it has't sold and it won't being over priced.

Its sad how perceived value of ones home can get in the way of accomplishing ones real estate goals. Its an issue we all have to deal with though. Good post.

Thanks so much for getting this out to us tonight.  

Sandy,

These are the same comments all over the country. Rarely, do home owners follow the market and want to decrease their asking price.

Brian

Sandy, everyone thinks their house is better.

But appraisers don't they see it with no emotions.

More than ever, I think providing Sellers with tangible, real time data is critical. If done the first time, it saves on having to repeat something that doubles your workload.

Sandy, What a great list.  I've heard most of these and could add a few, lol.  I come loaded with facts and many sellers still try to argue the facts.  Of course they don't win, but they try!

We put an offer in on an over priced property a few weeks back.  In the "write-in" section of the contract we wrote, price to be the lesser of the appraisal or the agreed upon price.  The seller agreed.  Our due diligence period will begin tomorrow, so I am looking forward to having the appraisal ordered and getting the results back!  :-)

 I love thie list.  I'm sure many of us have heard several or all of them over the years.

Great list of "reasons" why the Sellers' house is worth more.  When you start hearing this list it may be time to let the clients know that you will be pleased to be their third agent. 

Ruthmarie, Well at least we know that the theme from sellers remains the same across the country.

Erica, Good for you - you have to know when it's time for you to bow out, as you won't be doing a seller any favors with an overpriced listing. It so important that we take listings where that we knowl that realistically we can sell. Otherwise we are wasting the sellers time as well as wasting our efforts and advertising dollars.

Robert, Figure #34 spells it out beautifully.  But, you know, that people are people and we all want the most money for our properties. It's true.

Cameron, I've heard that one a couple of times... and it strikes a funny chord with me each time I hear it.  Yes, that's correct that neighbor can't sell if he's been on the market for 9 months. Too funny!

Around here, buyers don't want a house that needs some updateing - they usually take a beating - the buyers will overpay for an updated house that is well decorated - foolish in my opinion too.

Eric, I love the way you put it- perfectly - perceived value does get in the way of some reaching their real estate goals - it's that thing we call emotions - emotions take over, and sometimes good ole common sense flies out the window.

Patricia, You're welcome.

Brian, I think it's often hard for people to keep track of what the market is doing, as the average owner sells 5 to 7 times in their lifetime. We're in the market everyday - and often it surprises me these days. We a seller comes to us, sometimes they are looking at sales prices from a couple of years ago. It's our job to update them on what the current market is doing.

Missy, I believe that you are right - everyone does think theres is better. And appraisers are strictly looking at numbers on a sheet of paper.

Harj, Good point - if presented with the correct info the first time, that helps us do our jobs. Sometimes, it takes a while to get some sellers to warm up to the facts that we are putting in front of them.

Elizabeth, It really is about presenting all of today's information and data, isn't it?  It's critical that we get the correct info to those sellers.

Robert, Oh boy, this could prove to be an interesting proposition for that seller. Are they prepared to drop their price if the appraisal comes in lower?  Sometimes that's a tough situation.  I wish you the very best of luck. I hope it all turns out beautifully for all parties involved.

Christine, I know I certainly have heard them all.  I even thought of a few that I missed after I wrote the post. I think this could be an endless list of 'buts', don't you?

Valerie, So beautifully put.  Sometimes it's best to decline the listing, let another agent take it the first 'go round' and then get it when it expires and they have had some time on the market.  Great point!

Angela, That's interesting. I am always curious to hear perceptions from other parts of the country.  Since Florida is in the top 5 states with the highest number of foreclosures, buyers are coming out of the woodwork to "steal" a great house.  We are seeing some seriously low offers.  Here, no one wants to overpay for anything. We have to remind buyers that there is a difference between what a house is worth in today's market and what they want to pay for a house.

Sometimes it's tough to bring them down to earth.  Not only do they all think their house is best, the emotional attachment is worth something to them that means nothing to anyone else.  It is hard, but the bright side is if they are buying again, they get to reap the benefits of the buyers market, too! :)

Sandy, sellers deal with emotions and we deal with facts. It's difficult for the two to come together from a sellers perspective. Good Post!

Perhaps this seller used those special "gold nails" to hold everything together? I have a seller I am currently dealing with who has done absolutely no improvements on their home, and they still have the old original push button light switches. A house down the block, almost its twin, was completely gutted and remodelded. Yet, this owner truly feels deep down that her home is worth much more.

Its insane isn't it? Best one I had was a seller that told me their house was worth more because of the flag they had outside, you know the type wher you can have a picture of ha pumkin at Halloween. I said ok how much did that cost? Oh no she said we are taking that with us! They wanted $40,000 more for a flag that they were taking!!!!!!

You can't make this stuff up!

Sandy,

I loved your post.  I could not help laughing.  Over the year, I have heard all of those and more, from both sellers and agents.

Thanks

Sandy - We all have to educate our seller's about chasing the market down... Its a battle we fight day in and day out, but the end result is worth it. I loved how you broke down the details so clearly! Well done...

LOL Sandy - your blog title is like deja Vu - can't even count how many times we've heard this hasty generalization which is illogical.

Okay then, riddle me this... my house appraised for $104/foot 6 months ago.  Comps in my area are all over the place; from $85 - $145 per foot.  I've redone every single room, plus added a master suite (about 400 square feet).  The lower end homes have no remodeling and the higher end homes have been gutted, like mine.  Why did my house only appraise for $104/foot?

Sara, I love your point of view. Although sellers are emotionally attached to their homes, as so many are, they do get to reap the rewards of buying a property at today's low prices and enjoy the benefit of getting an attractive deal.

Hi Michael, It is up to us to separate the facts from emotions. As emotions have no place in a real estate transaction. We must think with our heads and not with our hearts.

Rose, I think that it's just wishful thinking on the seller's part.  So many have lost so much, and if they hold out long enough they feel they may reap the big profits.

Gordon, Well, that must have been quite a flag.  More power to them - if they can find a way to justify it, perhaps they can find a way for it to become a reality.

John, I think that sometimes in our business we have to be able to laugh to keep from crying, don't you?

Brent and Deb, Chasing the market down is a terrible spot for any seller to be in.  And it can get them so much less money than if they price the home properly from the day it goes on the market.

Jeff and Grace, I think that so often when we are trying to justify money, sometimes it isn't very logical - and I think that can apply to any one of us - people are all people.

Monte, Oh boy, as real estate is local in nature, you've got an interesting riddle for a local appraiser or agent to your area. Appraising a home is an art and not an exact science.  And, an appraisal can vary between different appraisal companies.  Are all the lots in your area of similar size or do they vary greatly?  In our area, in neighborhoods where the lots are all about the same size, smaller houses sell for more money per square foot than larger ones do.  And, they can pull the value down on those larger homes.  Did the extra 400 square feet that was added make yours one of the larger houses in the area? Was the appraisal based on comparable sales or did they do a cost approach appraisal based on cost to rebuild? Was the appraisal you had done used for a refinance?  Often those numbers can differ from an appraisal done to purchase a property.  What type of remodeling did you do?  Some remodeling gives you back $2 for each dollar spent, whereas other remodeling may make the house nicer, and may help it sell more quickly but may not necessarily add dollar value to the property.  You have a great riddle.  There are so many factors to take into consideration. Did you talk to the appraisal company that did the appraisal? Or check with a local real estate pro that specializes in your area and ask them for comps.  Perhaps they can shed some light on the situation for you.

If the seller doesn't believe the comps, then try to show them some competition that's priced at the market. If they still won't understand, then it's time to let someone else have the listing.

Sandy,  We have to educate our sellers.  We are in a price-driven market here in south Florida.   That's a tough pill to swallow for a lot of sellers, but it's the truth. 

Sandy, Great post.  After all the "buts" I generally get the "I want" statement.  My standard reply is:

 " and I want to shoot par golf, neither one is gonna happen any time soon"

Sometimes it gets them thinking.

Val, I agree that sometimes we have to just walk away and let someone else "take" the listing. If it's overpriced it's not going to sell.

Elyse, Price is key in this market. And when it's priced properly, we are still seeing buyers making low ball offers today.

Gordon, "I want" and what the property is worth are 2 totally different things.