A sign our our times…
Dear Seller,
I appreciate your feedback that I have undervalued your Scottsdale home. I just want to take a moment to clarify my preliminary estimate of the selling price of your home, which can be very different than the market value of your home.
My approximation of selling price is based on a number of variables, that include the experience that I have representing a good number of home sellers and buyers in this very tough market. Even homes that are have high values are going at reduced rates, simply due to the extreme amount of competition. Buyers expect to get a good price at a value that will hold fairly well in a depreciating market, so for the most part, they bargain hard. If they do not find a middle ground with one seller, they just move on.
It’s not the way any of us would like it necessarily, but more the reality of the current Scottsdale real estate market. If you must sell your house in this market, and have found an agent who is confident that they can sell your house at the price you are looking for, then you’ve found a match. I view my priority in working for a client to sell their house, not simply market it, and then request a series of price reductions until the current market value is found.
In the end, neither the seller, nor their listing agent decide what a property is worth, it is the buyer, who makes an offer for what they are willing to pay, who decides the price and market value of the home.
5 responses so far ↓
1 Seth // Jun 24, 2008 at 10:37 am
Bottom line is value is determined by what the consumer will pay. Great post.
2 Jacki // Jun 24, 2008 at 10:47 am
Thanks for pointing out the difference between selling and marketing. Two completely different things that sellers don’t generally understand.
3 Dru Bloomfield // Jun 25, 2008 at 6:06 pm
@Seth - Home buyers are doing a good amount of research on areas and home prices, before they ever get in the car and start driving neighborhoods. It’s a smart move.
@Jacki - You know, all the marketing in the world can’t sell something that’s overpriced.
4 Colleen Kulikowski // Jul 29, 2008 at 6:09 pm
Dru — Great letter! So true!
5 Dru Bloomfield // Jul 30, 2008 at 6:37 am
Colleen - I look forward to the day, when this letter is a historical perspective, rather than a continued current assessment of the market.
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