It happens with houses all the time. In misjudging the marketplace in the very beginning, property owners cheat themselves out of potential profits. Do they do this all on their own? Certainly not. There’s this little game that some real estate agents play in order to compete for a property listing. Knowing that a seller is “interviewing” two or more agents, one agent tells the seller they can sell the house for more than the other agents. This agent has clearly recognized that in a battle of knowledge and property sales ability they are unarmed, and has decided to win the only way they can. Sad, but true. What that agent has also accomplished is they have set up the expectation for the seller that the inflated price is reasonable, so now the seller is unwilling to take much less, even if offered the fair market value for the property. So the house sits. And sits. And sits. By the time the sales price is reduced to what it should have been in the first place, potential buyers have moved on, and new buyers see how long it’s been on the market and think there’s something wrong with it. It has become Market Worn.
Truly unscrupulous real estate agents are not the norm—some just misjudge the market value. Well intended, but with the same result. The house sits.
Many times a property is overpriced because a real estate agent can’t convince a property owner that the price the owner thought they could get is not reasonable. As human beings, we innately believe that our “stuff” is more valuable than another person’s seemingly identical “stuff”. Why? Well, because we know everything about our stuff. We have great memories associated with our stuff. We know how hard we had to work and save to buy our stuff. We know how well we’ve cared for our stuff. Therefore, it must be better than their stuff. And because it’s better, it’s worth more, right? Nope. And if you insist on trying to sell your “stuff” at a higher price than their “stuff”, you will end up not selling it. Worse yet, you could end up taking months to sell it, with price reduction after price reduction, and eventually sell it at a price lower than you could have gotten if it was priced appropriately from the beginning.
The moral of the story—becoming Market Worn is expensive. It costs time, energy, resources, hassle, and profits. The good news is that it’s completely avoidable. Determining the market value of a property is more science than art, and it’s best done by someone without an emotional attachment to the property.
Do you want to know what your home is worth? Call PB!