Feedback received: Asking price is too high for the neighborhood.

The email below is from me to a seller client after receiving a showing cancellation. The feedback from the buyer’s agent was that the buyers didn’t realize the price of the home when they asked to see it. As you will see in my email to the home sellers, this is usually a sign that the home is priced too high for the neighborhood. …and even if it truly is way better than the other homes in the immediate area and you could get someone to agree to pay the high asking price, the bank is going to have an appraisal performed before approving the mortgage, and appraisers will judge the home objectively against other homes in the immediate area (they don’t care if you gold plated the walls and put in diamond covered doorknobs), so the price will have to come down in the end anyway.

There are obviously exceptions to everything, but this was not one of those times, especially since this particular home didn’t have Central AC, so that was a big hurdle already in the price range that we were in. Unfortunately for my sweet client, the price had to come down to get it sold.

price-reduced

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NOTE: Speaking in person or on the phone is always preferred, but sometimes email or text is the best way to communicate or convey information, as well as keep track of what was said and when. …plus, some clients just prefer to communicate that way, so I accommodate them and communicate any way they want to.
All identities and addresses are kept confidential.

“Hey _________,

I just got a response from the agent that scheduled and then cancelled the showing for last night… She said that the Buyers had driven past your house, saw the sign, and assumed it would be in the same price range as the others they had looked at in the area, so they asked to see it, but then when they looked at the information, they realized it was higher than they were expecting and wanted to spend in that neighborhood.

First of all, the agent should know their price range and what they are looking for, so they should have
been alerted of the price before scheduling and making you pack up your kids late in the evening and get out for the showing, all for nothing.

Now that I’ve vented LOL :-), here’s what this really means… This feedback, plus our long time on market and other feedback we’ve gotten at open houses and from other showings, is telling us that our asking price is unfortunately a bit high. If people assume it will be in a certain range based on others they’ve seen in the neighborhood and it ends up being so far out of that range that they don’t even want to look at it, that’s a sure sign of overpricing. Also, all the feedback we’ve gotten from double digit showings is always that they like the home, they just don’t like the price. And if people like a house after seeing it and don’t even want to make an offer, they think that their offer and what they think it’s worth is way too far from what the seller wants to ever come to an agreement on price. …so unfortunately it’s not a matter of painting or cleaning or making the home nicer or better somehow to make it worth the price, it’s a matter of lowering the price to be in line with others in the neighborhood. I always hate to be the bearer of this kind of news, but I think we have to be realistic to be successful in getting your home sold.

When we first listing, we discussed that the price might be a bit much for the neighborhood and that even if someone agreed to pay it, we would probably be in trouble when appraisal time comes around anyway, so this shouldn’t be a huge shock. However, I know it’s never easy to reduce and it’s real money that affects your life, so please take some time and think it over before you let me know what you’d like to do (reduce or hang tight).

Let me know what you think and any questions and/or concerns you have. Thanks and have a great day!

https://ClientSatisfactionFirst.com
Derek Bicksler
RSR, REALTORS”

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