Several months ago I did a comparative market analysis on a lovely home in Groton. The seller had an idea of what the home was worth, which was significantly higher than my recommended price. I'm sure the seller felt insulted. She listed the home with another agent who told her exactly what she wanted to hear. It still has not sold and probably won't, unless there is a drastic price reduction. This isn't the first time this has happened to me this year, and I'm sure it won't be the last. Unrealistic expectations have become a common occurrence in the area and is a major cause of the oversupply of listings we have in Eastern Connecticut. It seems that some sellers just don't get the big picture. The picture is not very pretty but it isn't downright ugly either. This is not 2004 when homes sold at a record price and in record time, probably with multiple offers. Homes are still moving, however, if they are priced right and are in outstanding condition.
In most cases, I blame the real estate agent who takes the overpriced listing more than I blame the seller. There are 2 kinds of agents who take overpriced listings. The first is the inexperienced agent. Being unsure of themselves, inexperienced agents will often give the seller a high price because they don't have the experience to correctly price a home. If an agent has been licensed only a few years, they have never experienced a down market or sold enough homes to understand pricing strategy. As a result, they are not confident enough to challenge a seller with statistics and hard facts.
Worse than the inexperienced agent, is the dishonest agent. This is the agent who tells a seller what they want to hear in order to obtain the listing. Once they secure the listing, they work on getting the price down.
For me, listings come in 3 categories. First is the listing that is priced right and in good condition. These are the ones that sell quickly and near or above asking price. The second is the overpriced listing in good condition. This listing will sell eventually but usually after a price reduction or two. Unfortunately, it will usually sell for less than it could have sold for had it been priced right to begin with. The third is the overpriced listing in below average condition. These are the listings that eventually expire and never sell.
It is not worth my time or money to list a home that will eventually expire and not sell.
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