Don't Get Bought When Listing Your Property

Somehow I ended up on the email marketing list for a local agent (kind of how you are probably wondering how you ended up on mine?). Today's blast was all about a record sale in a gated, waterfront neighborhood. It certainly was the highest sale in the neighborhood's history, and it well should have been. It was a beautiful home on the premier lot, and it was worth every penny that was paid for it based on the market.

 

Here is what hit me a little wrong about it, and it is what made me want to make this post. The home sold for 80% of list price. What is worse, it sold at 75% of where it listed almost a year ago. While it was a record high sale, could it have been higher? Could it at least been faster? Why would such an amazing, rare, property take so long to sell?

 

Maybe the seller got bought when listing it. Getting bought is simple, you are told all of the wonderful things that you want to hear about your property, and you are told it should easily sell well above what the actual math driving the current market tells you. It does not matter what type of market cycle you are in, math is math. Buyers will only pay so much, even if there is a frenzy, and I have not seen a frenzy in a minute. 

 

All of us can miss the market pricing. We are human. (I have been using AI for pricing lately, and it is an amazing tool, but....) When the time comes to sell your property, have a real honest conversation with your agent about market conditions and timelines. Maybe this home hit their targets, and they were willing to wait it out. I have to think that pricing 10-15% lower would have yielded a significantly higher price with lower holding costs for a vacant, new build.

 

The moral of the story for sellers and agents is be realistic and honest. It usually helps your numbers, and it definitely helps your soul.

 

Have a wonderful day.

 

BW