What advice would you offer a homeowner with an over-improved property, looking to sell in a buyers'

What advice would you offer a homeowner unwilling to adjust his asking price to reflect true market value?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 04 2011 - Naples
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (23)

When I run into this issue, I recommend having a pre-market appraisal performed by a local, trusted appraiser who knows that our goal is to price the home appropriately going ON the market. It is a great way to determine exactly what the top price should be. Most buyers today have to obtain a loan and if an appraiser can't find the value and prove it to a lender, then it doesn't matter how much money the seller has invested. If the seller cannot part with the property for the appraised value or less (assuming the market is declining in their area), I encourage them to revisit their reasoning for wanting to sell.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 24 2012
I would offer the homeowner that we will keep marketing it.  I would also give them a snapshot of what comps sold in the last 6 months within 1/4 mile of their home and present that alongside all offers for their consideration.  This way, you are throwing the facts their way and you are not the bad guy.  
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 13 2011

I would say educate the seller at the time of the listing appointment with facts on paper where they can actually see what the market says their home should be priced at. If they don't agree .... or they just want to see what they could get, I list it as long as they understand that it is above the market value, and agree that in 30 - 45 days if we have not received an offer then we do a price correction.
Sellers sometimes just want to feel the market out and if it sells to quickly because they priced it where you said it should be they then think they had it priced to low. If one Agent doesn't list it and go through the process with them another one will. I feel that it is the sellers home and as long as the Realtor educates them on the market they will make the right decision if they really want to sell their home.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 06 2011
The biggest problem in todays market with over improved property is appraisals. The adjustments for condition, views, and upgrades are small relative to just a few years ago. I've had good luck meeting appraisers and educating them on my listing along with the comparable sales I used to establish value. After all, I am representing my SELLER'S best interest.

Certain listings still demand a premium. I've taken on many listings over the years where I felt an owner occupant cash buyer was a real probability. With the small adjustments appraisers are making, sometimes cash buyers do see the added value and are willing to pay above appraisal value. If the improvements exist that are on their wish list, it's less costly than adding the improvments from scratch. Clearly, there is a limit for this thinking and it's a special scenario. It's normally a 1 story property that fits into a retirment or close mentality.

I always shoot a seller straight from day one. If they aren't willing to accept my advice, I have the option to take on the listing and say I told you so down the road, or walk away. The property and marketability will normally dictate that decision.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 06 2011
Price the listing for what the market tells you the price should be. If the sellers re hesistant, list the property for a higher price. If it dosnt sell, the sellers will arrive to a point where they realized the price is too high and would need to adjust.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 06 2011
It's always a good idea to agree to and sign a realistic price change form at the time of listing a property. In doing so you avoid the unpleasant conversation down the road and you can do a price reduction based on time and amount already agrees upon at the time of listing.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 06 2011
the listing generates sign calls whether it is priced realistically or not...if after a consultation showing sellers what similar homes have sold for recently and they still don't care to adjust price to reflect comps, why should you...do you have any idea how many short sales aren't priced right..usually they're 10-20K below what they will actually close at
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 03 2011
You must be realistic for whatever market you are in.  If you are selling in a buyer's market, remember that you are also buying in a buyer's market.  Make sure your home stands out by making it memorable, have it shined from top to bottom and show like a Home & Garden home.  Don't be afraid to hire a home stager.  Focus on the highlights of the home making it worth the price.  Lighting and warmth are critical for pictures and showings.  Make sure the pictures are professional! 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 03 2011
wait to sell if you can. if you can't wait then come to terms with the fact that you might take a loss.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 03 2011
...you wait until they HAVE to sell - which will also be the worst time for them to sell...
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 21 2011
I will advise them to price it right! Take them to see the other comparative active listing in their neighborhood. Ask them; what made them think that in today's market a buyer will purchase their over price home? When there are so many other great deal available……
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 21 2011
I agree with Carmen, and we walk away from unrealistic clients when they won't price the home right.

I do explain to them if they want to "try it for a while", there are in fact agents who will take any listing at any price because their system is designed to draw buyer leads from the sign and online ads. But if they want a listing agent who wants to actually sell the home, they'll know they've found those agents because we're the ones who won't over-price it.
steve
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 21 2011
If the Seller is completely out of touch with reality and refuses to hear a good dose of reality, then you need to fire them as a client.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 20 2011
Simply remind them that they are not only selling in a buyer's market, but they are buying in a buyer's market.  It all comes out in the wash.   
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 13 2011
Profile picture for sunnyview
Oh Captain, my Captain. You are like a funny welcome breeze through Zillow. I hope to read more of your posts. My thumb to you :)
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 11 2011
First, you need to find out if he/she is religious. If so, tell them God will provide, and then they will accept the loss. If not, continue to step 2.

Ask if they have faith in the historical appreciation of real estate values.
If they answered yes, have them rent it out. Even if they do this for the next forty years, surely, eventually, sometime, they will be able to sell it and re-coup their investment.  If they still are not believers, continue to Step 3

Offer them an absurdly low offer in cash. If they accept, you both win. If not, we will have to resort to Step 4.

If they absolutely have to move, you will say firmly but spiritually, "You can get on with your life, or be miserable." I'll help with you the the former.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 11 2011
Profile picture for rockinblu
@Dan

There's a fifth option. Go FSBO, and wait for that perfect buyer. That's what we did, and he showed up in about the same length of time the agent had it before he cancelled our listing. The agent wanted us to go below the 200k level as he felt that area of the subdivision (older) could no longer support an asking price above.

We sold in 2008 for 218, and just to show how wrong the agent was, it sold for 228 two years later. Since our buyer was unrepresented, our net was close to 30k above where our agent was trying to lead us.

Our former house was not in a rapidly declining market, but at the time there were seven other houses for sale in the subdivision. After we took over the listing, I think ours sold before any of them, including an agent owned flip down the street.

Yeah, a lot of it was dumb luck, and I'm the first to admit it. However, if a seller has the time and really isn't in a situation where he/she/they need to sell in a hurry, what we did is always another option. Needless to say the seller/ sellers have to be a good candidate for doing a FSBO in the first place.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 07 2011
I think ultimately the owner may have to take a hit, but one suggestion is if you find a buyer that really appreciates the work that was put in, but they don't want to pay up front, suggest holding a small shorter term note (say 5 years) for a portion of the price.  Even though you don't get your money up front, at least you will recoup some of the invested value.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 07 2011

It depends on a few things.First a strong understanding of how you arrived at the point of listing the home,where the client wants to be in the future and what motivates them.Sometimes everyone has the best intentions and things change.That doesn't make clients unwilling,just new information has changed or distracted their focus.Most times if I hit a road block on price,it has NOTHING to do with price.It has to do what has changed in the relationships.Ours? theirs? Have the moved out of state for a job transfer and they do not like the job? Second thoughts can slow down the motivations to a hault.Only there IS a reason.It is finding out what is it that is stopping them .Data can only go so far,software,charts MLS sheets and CMA"S are when you are dealing with logic.Most times we all know selling a home is emotional.Getting to the emotional road block will clear the path for information to be received and processed so you can get the home sold.Only then will a price reductions make sense.When something seems to hard and defies logic..there is something else going on.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 04 2011
Going through that now Sergio.  I use a system called homefeedback.com and customize the questions to really hit home about the price so the showing agent will be honest about the high price so the seller sees it.

Good luck, you are going to need it!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 04 2011

If your the listing agent than time is money.

If your seller is a move-up buyer I would promote the fact that they will be saving money on their upgrade so it's okay to take less on their sale.

If the seller is just wanting to sell for no particuliar reason I would explain to them why the price needs to be dropped.  If they refuse to drop the price I would tell them to look for another agent.

Some sellers just don't understand why their home isn't selling for the price they had in their minds.  If you can't sell the home at the current price and they refuse to lower the price than you have 2 options.  Cancel the listing with them or let it expire.  Either way it's not worth it for you to continue dealing with a listing that won't sell.

Best of luck!

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 04 2011
If they are looking to sell then I assume they have a reason for selling in a "buyers market".  That said the price that a ready, willing, and able buyer does not change based on the sellers need to sell.  The value of the home is certainly somewhat subjective, but determining a pretty good range of an expected sales price is certainly not rocket science if there is enough market data.  I would suggest weighing the necessity of selling with the realistic expected sales price to determine if selling makes sense.  Renting is a good option at this point in most markets, but if they do decide to sell they should hire an aggressive REALTOR who can negotiate the best price for them.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 04 2011
Profile picture for the_country_hick
You only have 4 options.

You can keep the house.

You can rent it out.

You can leave it empty.

You can sell it and lose a lot of money.

Just because you have $8,000,000,000 in the house does not mean it will sell for more than $75,000.

Decide to sell and accept the economic loss or keep it and enjoy the house. The choice is yours.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
May 04 2011
 
Related Questions
How would the commission be set on a $6 million+ sale listing? What would be a normal, fair %
Profile picture for Call The  Sisters
Latest answer by Call The Sisters
October 22 2013 | 11 answers
thinking of selling my home
Profile picture for Allyson Almeida
Latest answer by Allyson Almeida
April 30 2013 | 2 answers
Pet Odors.....How much of a factor are they, if any, when marketing a property for sale?
Profile picture for David & Tracy  Schulz
Latest answer by David & Tracy Schulz
June 15 2012 | 19 answers
What advice would you offer a homeowner with an over-improved property, looking to sell in a buyers'
Profile picture for Angela Batchelor
Latest answer by Angela Batchelor
March 24 2012 | 23 answers
How can I post a home for sale or rent on Zillow and what is the process to do this
Profile picture for sunnyview
Latest answer by sunnyview
November 01 2011 | 3 answers
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 10055 Boca Ave S, Naples, FL Home For Sale
    10055 Boca Ave S, Naples, FL 34109

     For Sale: $439,500

    • Beds: 3
    • Sqft: 2130
    • Baths: 2.0
    • Lot: 10018
  2. 116 Coral Vine Dr, Naples, FL Home For Sale
    116 Coral Vine Dr, Naples, FL 34110

     For Sale: $339,500

    • Beds: 3
    • Sqft: 1642
    • Baths: 2.0
    • Lot: 10018
  3. 732 Woodshire Ln APT I7, Naples, FL Home For Sale
    732 Woodshire Ln APT I7, Naples, FL 34105

     For Sale: $217,000

    • Beds: 2
    • Sqft: 1216
    • Baths: 2.0
    • Lot: --