RealTown's RealTalk

Pricing has been a problem for some sellers due to a varied number of reasons. We have found that if we find the motivation (reason) the seller wants to sell, will lead to the way you handle the pricing question. The different ways we have found to work are numerous but we do see a few that we use very often.

1. Lost or change of job/income and no relocation services available: Time is #1 followed by Holding costs.

2. Estate or spouse death: Holding costs, relocate closer to family.

3. Retiring: Time Frame

4. Re-married and moving into others home/different location: Holding costs

5. Moved up/down due to family size/living style: Time

These seem to be the different reasons we see more often. To handle these we do a CMA but when explaining price we tell the seller that our CMA will not be accepted by any lenders and buyers agents will do their own for their clients, (we pay only buyers agents a share of the commission).

We ask every seller to pay for a fee appraisal from a qualified FHA approved appraiser prior to selling but to understand that the comps will be upto six months old which could have an effect one way or another in a sellers or buyers market. Not all sellers want to invest money into the selling before they get a sale. We also ask the seller to invest in a home inspection at the same time along with a survey, so as not to have a lot of stress after we have accepted an offer and need to make conessions of money to the buyers in order to close. We also share with the seller what their taxable assessment is and what will happen when the new listed/sale price is recorded and how buyers may react in seeing this prior to writing a offer.

Explaining what the absorption rate is in the area their home is located has also help the sellers to understand what the market is doing at this time. We have in some areas a 5 year supply of listed homes and when we take a listing its for 12 months.

Hope this may help.

Jim Lyals, Realtor

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