A BIG WHY. This is really hit home with some sellers who have their home that sit on the market for years without able to sell. As a result, the home ends up going through several different listing agents, and each failing to get the home sold. Below are some major facts of WHY it happen:
1. Homeowner/seller decides to list their home with a Realtor. Realtor does his/her homework, CMA (Comparative Market Analysis)… and determine the home is worth, for example $250,000, and the seller decides to list the home for $275,000.
2. House fails to sell. Meanwhile, the home down street sells for $250,000. After 6 months, the seller decides the agent has not done their job and fires them.
3. Seller hires a new agent, and list the house for $250,000. The current CMA shows the home is now only worth $225,000. Once again the home is overpriced because the market value is declining. The house sits on the market for another 6 months without a singer offer.
4. The agent can not sell the overpriced house, so the seller fires them and hires someone else. The home has been on the market for a year now, with three different agents. This time, the seller lists the home at $225,000. Again, the market has declined and the home is only worth $200,000.
5. I think you get the idea here…
The problem is NOT with a bad agent who listed the house, NOR is it because the market is bad. Had the home been listed for $250,000 from the start, it would have sold. Every month the property sits on the market is another month that the home is losing value, and as time goes by less and less people even bother to view the property.
The other thing to bear in mind is appraisers look at the same comparable sales that we as Realtors look at. If the Market Analysis can not support a listing price of $275,000, odds are good that the appraiser will not be able to support the price either.
As a Realtor, my solution is simple. If the seller is determined to list the home for a price that I feel is unrealistic, I do not have to take the listing. It does not make sense for agents to take “dead on arrival” listings like that because we don’t get pay for our services on homes that don’t sell. For a seller, if you think your Realtor’s analysis of your home is inaccurate, it might be a good idea to have a formal appraisal done on the property. It is extremely rare for someone to be able to sell a home for more than the appraised value because lenders will not write a loan for more than a home is worth.
There are lots of appraisal companies in Murphy NC and the cost is generally a couple hundreds dollars depending on the size of the house. Commercial property can be a little more. It is a small price to pay in order to be able to sell your home for $250,000 now rather than waiting months or years to find out the home has lost $100,000 in value. At the end of the day, it just does not make sense for sellers or agents to list properties for more than they are actually worth. I understand wanting to make sure you get as much as possible for your home, but listening to the expert opinion of your Realtor can make the difference between a sale and a foreclosure.
If you have any Real Estate questions or want to know the current value of your home, give me a call/text Big Frank at 828-837-0991, email: firstname.lastname@example.org. I am here to help you. I love my job. I am your local Real Estate expert, being in Top Ten Producer of EXIT of The Carolinas (The EXIT offices of North Carolina and South Carolina) since 2009 to present, and I am in housing business for 39 years that allow me to help people achieve their Real Estate goals effectively. I am a full-time Broker/Realtor at EXIT Realty Mountain View Properties, Murphy NC. We are serving Western NC and North GA. You can search active listings at www.28906.com
Reference: St. Paul Real Estate Blog by Teresa Boardman.