Why do Realtors keep pressing price? I know that there is this perception of agents as self serving and just looking for a commission. But is that it?
I discuss the importance of price here often. Maybe the reason that they keep telling you that your home is worth less than you think is because, in many cases, it is….
Zillow recently posted a fabulous article and the results of their Quarter 3 Homeowner Confidence Survey asking consumers their perception of their homes value over the course of the last year and expectations of values for the coming months. The survey took place October 7-9, one of the worst weeks on the stock market in U.S. history.
The following is an excerpt from that article:
The results — kind of baffling. While the perception gap did narrow, still half of U.S. homeowners do not think their home’s value has declined over the past year. Specifically:
- 32% think their home’s value increased in the past 12 months
- 17% think their home’s value held steady
- 51% think their home’s value declined
In reality, three-quarters (74%) of U.S. homes lost value in the past 12 months, according to Zillow’s Q3 data.
So what’s my point here? Maybe, possibly, your perception of the value of your home may vary from the reality of the market. Just something to consider.
11/7/08 Update: I came across this article tonight on MSNBC and thought this was an interesting addition to the conversation.
Thanks for reading! We value your thoughts and opinions, so please feel free to leave a comment. Please contact us if you have any questions or need help. You can also get automatic updates for this blog free via:
{ 3 comments… read them below or add one }
Linsey, thank-you for the information.
Great Post Lindsey, but lets add some fuel to the fire… Perhaps the reason your Realtor keeps asking you for a price reduction is because he/she didnt price it properly in the first place… Perhaps, your Realtor was so concerned about not getting the listing that he/she accepted a price higher than they truly believed it could sell for. Sellers could do themselves a service by ensuring that the Realtor they choose to list their house agrees upon the initial listing price, therefore making price reductions less common, and sales, more….
Always, my $.02
Jim Marks
Jim - Right on the money. No question about it. In a market where many agents are struggling, they will often take a listing thinking they’ll negotiate a price reduction later with the seller. Bad news for them and their seller. The seller that hires the agent that is willing to shoot straight with them about the real price (and not just the one they hope to hear) is the agent they should hire.
I guess part of my interest in this bit of news was the perception that so many owners had - thinking their home actually held, or even increased, in value when the reality is that 72% of homes lost value. From a Realtor perspective, I have to serve a dose of reality in a listing appointment that many don’t want to hear or even believe, and still illicit the kind of confidence that makes a seller want to list with me. It’s an interesting dichotomy to be sure.
Thanks noting the responsibility of the agent in this process. Point well taken!