Reason 5 of 5 why your property isn’t selling – Unrealistic price expectations by the owners of the property
As an agent who appraises many properties, I pride myself on giving accurate appraisals. I carefully explain the data presented to show the seller how I arrive at my “estimate of the selling price” for their property. This is based on the facts of what has sold, what is currently on the market and the current market sentiment.
There are times after all of that, that the seller for one reason or another is seeking a price, often 10% or more above the top of the estimated selling price range quoted. A price that is well above what the market will consider reasonable.
The agent has three choices at this point.
- To kindly explain that the price expectation of the seller is too high and for the agent to walk away from the listing.
- To agree to market the property at the seller’s price, even though they know that it is more likely than not able to be achieved.
- To work out a strategy with the seller whereby the pricing might start at their higher price, but after a certain timeframe, based on buyer feedback, to adjust the price back down to the realistic estimated range that the agent quoted initially.
Selling a property is a dynamic process and needs flexibility from both the agent and the vendor to achieve a satisfactory outcome, that being a sale at the best price possible. Regular communication is vital, along with an honest, up front dialogue regarding price expectations. If the seller’s expectations are in line with the estimate of the selling price given by the agent, you are “both on the same page” so to speak. Then it is up to the agent to suggest the best marketing strategy for that particular property to achieve the best result.
If the seller is fixed in their mind that their property is worth “x” and that is a price significantly above what the market will bear, then the property will just sit there with little or no interest and not sell, until something changes.
For a no obligation review of YOUR property, please call Peter Davies Licensed Agent, Chilli Realty on 0402 335 005