The Reluctance to Reduce Home Prices

Our Regional Multiple Listing Service gives us agents the ability to track listings of our choice. I have been watching some homes across the cities for the last six months. What I find interesting is that many of these sellers have been very reluctant to reduce their prices. Knowing the market is my job, so I know when a home is over-priced. My question is, why does the listing agent not see this as well?

I am sure there are some agents that over-price a home, just to get the listing and make the seller happy. This is nothing new to the real estate business. I am also sure there are many more agents who are trying to get their sellers to reduce the price, but the sellers are unwilling. The latter is most likely what most agents are experiencing right now.

Of the homes I am watching, nearly 25% of them have finally reduced their prices in the last week to more realistic selling prices. The smallest reduction was $20,000…the highest was $50,000! The sad thing is the seller will always have in their mind, when faced with an offer on their home, “But I have already lost $50,000”. What they fail to understand is that “$50,000” was never really theirs, but was only an illusion created by an unrealistic market.

It is really hard for an agent to convince a seller otherwise. Hopefully it will only take another year for things to get sorted out. If you find yourself, as a seller, with this mindset, please take the time to reevaluate your reason for selling. It could be that you have reduced your home so much that you will now be bringing money to table. Instead of facing this possibility, why not reconsider selling, and think about staying in your home another couple years. Who knows, by then, it is much more likely you will be in a better financial position to sell then you are today.

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