While homes may languish on the sale market for any number of reasons, the most common cause is an inappropriate listing price. Typically, this means the real estate agent allowed the owners to set the asking price too high without scheduled reductions and that he or she failed to walk away from a bad listing.
A good rule of thumb for agents working in a strong seller’s market, where properties are moving within a matter of days, is to lower the price if the listing has not generated any offers after 10 showings or 10 days on the market. They’ll want to include scheduled price reductions in the actual listing agreement, in order to avoid conflict with the sellers and prevent the listing from being stigmatized as overpriced.
Real estate coach Mike Ferry’s advice for handling overpriced listings is to apologize to the sellers for not informing them that they were asking too much for their home and then offer to release them from the listing contract. Most sellers will be so shocked by the approach that they will open up to the idea of a price cut. If they stubbornly refuse, at least the agent will avoid wasting time, money, and energy on an unrealistic client.
Another option for dealing with overpriced listings — at least in a seller’s market — is to wait and hope that prices eventually rise to the level at which the property was listed. However, sellers are sure to become impatient once they see other homes near them moving off the market and blame the agent instead of the fact that their price is too steep.
The author of this article is: realtormag.realtor.org
See the original post at: http://realtormag.realtor.org/daily-news/2013/07/24/shock-treatment-may-dial-in-price-reductions
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