Case Study – Well-Intentioned Advice Isn’t Always Well-Informed Advice
Posted December 2nd, 2015 by Moving Station

A couple met agents through our Home Sale Program to gather information for themselves on their home value and preparing their home to sell as they readied themselves for a move into retirement living. After speaking with friends and family, including their children, the couple decided their home was worth more than both estimates provided by the agents they met and they listed the property about 10% higher than the agents recommended.

After a month and a half on the market, the sellers agreed to reduce their price 3%, though still well above the initial pricing estimates. And there the home sat for another almost 4 months, despite regular encouragement to bring the pricing more in line with market conditions, before a buyer came along and negotiated a sale price 7% below their last asking price. Unfortunately, the buyer decided to cancel the contract based on minor inspection issues and the home returned to the market. Finally, after almost 300 days on the market, the house went under contract with a second buyer for an amount slightly less than the lower of the two initial agents’ pricing estimates.

The moral of the story is that though your family and friends can speak from personal experiences, unless they are real estate professionals, they may not have the best grasp on your particular local area real estate market. Taking the advice of non-professionals can have huge implications on the length of time a home is on the market and the ultimate sale price of that property. It is more than likely that if this property was listed at an appropriate price to begin with, it would have sold months earlier and for a better value. As a seller, you have more leverage if you find a buyer early in the listing and marketing process and have a higher probability of securing a stronger price and a more committed buyer than after a home has languished on the market for several months. Listen to the real estate professionals that are tuned in to your local real estate market and have the best feel for what buyers are looking for. You will save yourself time and money, both of which I think we can all agree we could use more of!

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