Philadelphia, Bucks and Montgomery Counties Real Estate. Tips for home buyers, home sellers by Gita Bantwal,Realtor at Re/Max Centre Realtors.: Some tips to have sellers agree to price it right at the beginning.

Some tips to have sellers agree to price it right at the beginning.

Sellers want to price their home based on prices two years ago. It is our job to be honest and tell them what is happening in the market.

1. When the seller first calls and talks about listing, I ask if they have any idea what it is worth. Sometimes they say 'no'  and sometimes they may mention what the neighbor sold for. I take the comps with me to the appointment and many times they may be wrong about the sale price of their neighbor's home.

2.I show them the active listings and tell them to pretend to be buyers. This sometimes gets them to agree to a certain price based on the competition.

3.I take some  recent articles from local newspaper,  , showing it is a Buyer's market and explain why it is important to price it right.

4.  I show statistics that  show that the house gets most showings in the first few weeks, and explain the importance of pricing it right.

5.I go and  preview some homes so I know the competition. I do mention to listing agents, that I am previewing the home. Most of the time, I may have already shown the homes to others , if it is in my market area.

.6. I show them the seller's net sheet for different prices and suggest they price lower than the competition if they want to sell quickly.

Getting sellers to price the home right is not as difficult as having them agreeing to the commission. But in this market if the house is not priced right , it is not worth taking the listing. I know of agents who have turned down listings because sellers wanted to over price.

When you read about events please check the year for the event as some people find information a year later and think it is for that year. . The posts remain online even after the event.

Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com

 

She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email gita01@aol.com

If you would like a FREE MARKET EVALUATION OF YOUR HOME IN PHILADELPHIA, BUCKS or MONTGOMERY COUNTY call me at 2152758491

 Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers.Gita also hold the CRS designation , Certified Residential Specialist and the CDPE designation as well. Information about real estate market is deemed to be correct but is subject to errors and omissions and should be verified independently.. Opinion expressed by me or others  in my post and comments is not to be construed to be  legal advice.I am licensed in Pa. Check real estate laws in your state as they may be different than in Pa.

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Comment balloon 31 commentsGita Bantwal • February 09 2008 05:57PM

Comments

AMEN
Posted by Kelly Gabriel (LBI Realty Group) almost 11 years ago
These are important comments about the listing price of a property no matter where it is located in the Real Estate business.
Posted by George W. Jordan (Red Soil Real Estate Inc.) almost 11 years ago

You are right on the mark with this post Gita!! My market has been hot until recently so I won't go back to two years but the clients still want to think about the "hayday" when they could get 102% of list price and sell within 10 days of being on the market. Those days are gone for the time being and sellers need to be realistic.  Unfortunately, my sellers aren't there yet!!!

Tracy Santrock- Cary NC Real Estate

Posted by Tracy Santrock, Raleigh - Cary Realtor/Broker In Charge (Fonville Morisey/Santrock Realty Group, Inc. ) almost 11 years ago
I work along the same lines as you in my presentations.
Posted by Latonia Parks, Certified Military Relocation Expert (Top Bragg Realty, Fayetteville NC, Home of the 82d ABN DIV) almost 11 years ago
Gita - Terrific points.  I do something similar and in this market it pays to walk if a seller is being unreasonable.
Posted by Jennifer Fivelsdal, Mid Hudson Valley real estate connection ( JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571) almost 11 years ago

Kelly, Thanks for the comments.

George, It will be the same every where till the market improves.

Tracy, I hope sellers read the same articles that buyers are reading. Buyers expect to pay less because they read about the market in the newspapers.

Latonia, I guess most agents are doing the same .Days when agents took overpriced listings are gone.

Jennifer, I agree. If we walk, there is a chance we can get the listing  after it expires.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 11 years ago
Our team also uses recent newspaper articles. When sellers hear information from multiple sources, such as the agent and the media, they're more receptive to it. Getting them to have a realistic picture of today's market is a key to having a saleable listing.
Posted by John Novak, Henderson, Las Vegas and Summerlin Real Estate (Keller Williams Realty The Marketplace) almost 11 years ago
John, Thanks for the comments. I agree it is important that sellers have a realistic picture of the market.
Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 11 years ago
Gita, that's a wonderful presentation. I think I'll start taking newspaper articles along as well. Sellers need to be realistic.
Posted by Debbie Malone, From Lynchburg To The Lake (434) 546-0369 (Londeree's Real Estate & Property Management) almost 11 years ago

Gita,

Great suggestions on getting clients to properly price their homes.  Overpriced listings get a stigma right away in our market.  Then when the price reductions set in and they will, the seller ends up selling for less than they would have if they priced properly in the beginning.  It's frustrating to watch, but an inevitable reality of real estate.

Posted by Fran Gatti, Managing Principal Broker - RE/MAX Integrity (RE/MAX Integrity) almost 11 years ago

Debbie, Thanks for your comments.

Fran, That is what I tell sellers who say they can reduce  the price later.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 11 years ago

Debbie, Thanks for your comments.

Fran, That is what I tell sellers who say they can reduce  the price later.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 11 years ago
You are right when you say that people are often wrong about what the neighbor actually sold for versus what they say they sold for. Also, they need to look at whether or not concessions were made.
Posted by Benjamin Clark, Buyer's Agent - Certified Negotiation Expert (Homebuyer Representation, Inc.) almost 11 years ago
Thanks for the reminder.Sometimes the concessions can be as much as 5% of price.
Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 11 years ago
Pricing right is essential in this market.  With so many homes available, buyers won't look at the overpriced ones.
Posted by Marsha Cleaveland, GRI, AHWD, CNE (No longer in the sales business) almost 11 years ago

Another good thing to take is a current inventory timeline from your mls, which will show how many months inventory is currently listed. If the current inventory will take 22.4 months to sell, that is pretty sobering for sellers.

 

Dee

Posted by Dee Nofziger, Maumee Real Estate, Toledo Homes, Key Realty (|Key Realty | Maumee Toledo Real Estate Blog) almost 11 years ago
Thanks for the suggestion. If the inventory takes longer than 6 months, it might be better to take the listing after it expires if they are not realistic with price.
Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 11 years ago
Listing at the right price is key in any market.
Posted by Shannon Aldrich, NH & Maine Real Estate Seacoast (Keller Williams Coastal Realty) almost 11 years ago
Shannon, I agree. Thanks for the comments.  Listing at the right price is always important if we want to sell it in the least amount of time and with less inconvenience to sellers. We do not have  to wait for price reductions.
Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 11 years ago

Hi Gita. I have to agree with you on every point you brought up. Specially number 6. Sometimes they just want to know how much money they're going to have to work with to buy the next house after the entire process is done. In other words, How much money they'll be depositing into their bank accounts. This I find is the MOST important to them. Great post!!

Posted by Vicente A. Martinez, Realtor, Brooklyn - Long Island - Queens Homes (Prudential Douglas Elliman Licensed Real Estate Salesperson) almost 11 years ago
Vincent, Thank you for reading my post and for the comments.
Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 11 years ago
Gita- this is a good straight forward approach. I just had a client the other day who wanted advice on pricing a house. I tell them that I am an inspector, not a Realtor, but you have given me some ideas on what to say to them, but my first response is still going to be to talk it over with your Realtor.
Posted by Frank Schulte-Ladbeck (Frank Schulte-Ladbeck Professional Real Estate Inspections) almost 11 years ago
Frank, Thanks for taking the time to comment.
Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 11 years ago

Hi Gita,

We actually just had a training in our office on this subject and covered all of the points you made.  Great post!!!

Posted by Donna Bigda, Greater New Haven CT Real Estate (RE/MAX Alliance) almost 11 years ago
Donna, Thanks for the comments. I hope more sellers will read this post .
Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 11 years ago

Gita

In the past several months I have walked away from more listings than I have taken. Sellers don't understand that each day the property is on the market it is costing me money and I am not about to spend money on something I know won't have a return.

Honesty is the best approach with all Sellers. Even if it means walking away.

Posted by Gary J. Rocks (Juba Team Realty) almost 11 years ago
Gary, Thanks for the comments. I agree. Sometimes you may get the listing when it expires.
Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 11 years ago
Great points. Seller's in my area all seem to think their properties are worth more than what the buyer's think their worth. Because of this, we have a very high ratio of expireds. I take info on these along with me too. I use some of the points you made, but will be adding the others. One other thing I ask them after reviewing the information is to set sentiment aside. Look at the information, compare their home with the info, and decide what THEY would be willing to pay for a home identical to theirs.
Posted by Lissa Uder, Your Lebanon MO Real Estate Agent (RE/MAX Next Generation, LLC) almost 11 years ago
Thanks for the comments. It is a good idea to go for expired listings because they may be more realistic  about pricing.
Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 11 years ago

There are fewer agents willing to list at unmarketable prices right now. Maybe two years ago people didn't mind testing the waters but those days are behind us. I make pricing my number one concern- you have some great pointers for the other issues as well.

Posted by Chuck Willman UtahHomes.me, Utah Homes (Utah Homes) over 10 years ago

Chuck, Thank you. I agree pricing is the number one issue.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) over 10 years ago

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