3 REASONS WHY A LISTING IS NOT A LISTING
March 30, 2017 | Richard Sites
A “listing” in residential real estate, is a home which is offered for sale. But there are times when a “listing” is not a listing. Here are my thoughts.
To be considered a listing, and therefore eligible to be included in the (MLS), a home needs simply to be offered for sale. That is, a listing agreement is signed with an agent or the owner is trying to sell the home themselves.
For Sale By Owner (FSBO) homes may or may not be included in the MLS. Some flat rate services provided by members of the MLS list your home in the MLS but will not provide any other services or contract negotiations.
Since less than 1% of FSBOs successfully sell, I won’t bother with them here. But sometimes even a home listed with an agent may not really be a listing. Why? There are 3 main reasons.
The House is Overpriced
Houses that are overpriced do not sell. Period. So a home listed for sale but overpriced is not really a listing. It is just an overpriced home and usually with a frustrated seller.
Houses are usually overpriced when owners have been talking to the neighbors, or been on Zillow, and they know what the house is really worth. Agents on the other hand, with no emotional attachment, can better price a home to sell than an owner can. The trouble comes when the seller refuses to acknowledge what the true market value of their home is in the current market. Sellers get emotionally attached and this clouds their thinking.
Here’s a perfect example. Recently, I wrote about the perfect storm. After 600+ days on the market without selling, the owner still knew that the house was worth an even higher price. Instead of listening to agents with supporting documentation as to it’s price, he chose an agent who told him to raise the price. It has now been on the market another 70 days without selling.
The Owner is in Charge of Marketing
This usually happens in conjunction with the house being overpriced. Since the house isn’t selling, the owner typically blames the agent’s marketing and starts trying to call the shots by making demands like more open houses, advertising in the paper, etc.
Since about 95% of buyers start their search on the Internet, your Internet presence is the most critical element is exposing the homes to buyers. There is no special marketing sauce that causes a house to sell.
The use of aerial photography, videos and so forth can present the house to buyers in such a way as to pique their interest. Of course, it the house is overpriced it still will not sell.
Owner Knows More Than the Professional Real Estate Salesperson
Being emotionally attached to a house is certain to kill the sale, yet many owners believe they know more than a professional real estate salesperson.
This is usually signaled by the use of the phrase, “Well, we really don’t have to sell!”
If proper care is given when choosing the right agent, sellers should trust the agent’s recommendations regarding getting the house sold. Don’t hire someone you don’t trust or who doesn’t have a track record of getting homes sold.
I started my real estate career 14 years ago by selling a home for $1 million my first month in the business and I can help you move forward with your life plans too. That house was listed with others agents for 2 years without selling. Contact me at 561.762.4073 for a confidential discussion of how to get your home sold quickly and smoothly.