Lift the Burden of Marketing an Overpriced Home
Molly listed her home after purchasing another privately. She closed on the purchase in January and now, 4 months later, her home sat empty and unsold.
Molly was understandably upset, as she was paying taxes, utilities and insurance, plus mortgage payments on two homes. She called the broker, stating that her REALTOR® wasn’t advertising the home enough and wanted an agent who could get the home sold. The broker agreed to talk to the salesperson and get back to her.
The salesperson too was frustrated. He explained that Molly was a past client and agreed to list the home at her price: $30,000 more than recommended. He was averaging two showings per week with the same comment: too much money.
To appease Molly’s demands, he was advertising twice as much as any other listing. He advised her repeatedly that the problem was the price, not the marketing. Molly argued that she needed the extra money to help pay for the new purchase.
The broker also researched homes in her area and found that homes similar to hers were selling between $192,000 and $195,000, with a selling time of 2 ½ months.
The next morning he and Molly met. He reviewed what the REALTOR® said and presented his research of homes sold over the last 3 months. Molly somewhat reluctantly agreed that, based on the information, her home probably was worth around $195,000, but she needed $25,000 more. “A really good salesman could sell it for the price I need,” she said.