Follow this conversation between Peggy and her client today:
CLIENT: I think I want to sell, you have seen the home, what do you think?
PEGGY: If anyone can get the highest price for your home, it’s us, for sure. And, on a newsworthy note, residential inventory is lower than at any point in 4 years. So your timing is good. …
Add to that the fact that relocation buyers are now entering the market place, starting just after Thanksgiving and continuing through the end of March. We are entering our busiest period of each year, since for 20 years, my business has been built around a relocation focus.
So, if you do want to sell, let’s put your home on the market now and get it sold! I believe the best price to list it for is $700k. I know you would prefer more and we could start at $719k. If we get no or low showings, then we can adjust the price to $700k. I prefer listing at the right price when it just goes active. . You will have a stronger response when the most buyers are notified (see earlier post). I find listings that come on the market priced right, sell for more than those whose sellers are too bullish, and then lose market time and face a series of price reductions.
It is, of course, your decision. But, if you put me in the driver’s seat, with my primary objective to get the highest price in the least amount of time, I would price it at $700k and get it sold. Let me know.
CLIENT: I owe $675k and don’t want to be out of pocket. I don't need to get money back at closing, but I can’t be underwater after the sale. Now what do you think?
PEGGY: That is tough, but I'm not surprised knowing this market. I would be willing to do a lesser commission, for the sake of selling this for you and for the future business between us. But with $25k, there is not enough equity to cover closing expenses. If we pay 2.5% selling office commission, which is less than I typically pay, (I incentify buyer's agents, and it works!) That would leave a listing office commission of $10k, If we sold it at $700k. But if we sell it under $700k, that figure drops very fast. I cannot start up my engines for much under $10k.
I’ll bet my referral rental company PMC, can get that rented for you. What figure do you need to cover your overhead?
CLIENT: You are a sweetheart and superwoman! I just spoke to your PMC contact and she is awesome, I am going to make a change to have her manage and rent my house…She is driving by it tomorrow. thank you…
*PEGGY’S COMMENTS: Our clients need us to be a strong guide and an honest guide, even if it means losing their business in the short term. Because, really it is not losing anything in the short term. If we take on something we know we cannot complete, it will be terrible for the client and it will guarantee no future business from this client or from anyone they come in contact with. I would rather lose current business and gain the clients trust and respect and gain future business from him and those he knows, than take a listing at a price we are unable to sell it at.