Human nature dictates that we hold on tightly to everything we own.  The thinking is, really, “I want to hold on as long as I can and maybe I can get more for my assets”.  This trait never plays out more than in the real estate business.   It is common for a Seller to understand the market value of their property but say, “Let’s list it at about 15% higher so we have room to negotiate”.  We can always lower the price if we don’t get any action.

 

We have seen all too often, the results of this thinking in the present real estate world.   According to the National Association of Realtors,  the most active time for a listing is in the first 6 weeks of the listing.  There after interest begins to fade until the end of listing, unless something is done to restimulate interest.  The person who has listed 15% above the market, particularly in a declining market, with competition from distressed properties, finds his property not being shown.   He then decides to lower the price.   Unfortunately he is following a decreasing market and lost the most valuable 6 week selling window. Many times his property has decreased another 5%.  The property now becomes known as an over priced listing.

 

In the end, the Seller sells the home for lower than the original market value and taking much longer than if he were to have listed the home at or near the original market value. Thus, costing  him time and money.

 

                                                                   Don Schaller

                                                                   Broker/Owner

                                                                   Schaller Family Realtors

                                                                   Dickson Realty, Truckee

                                                                   dschaller@suddenlink.net