Overpriced listings can ruin a REALTOR'S® reputation

Jackie Leavenworth presents “It’s a Price War to the Door,” at the Triple Play REALTORS® Convention and Trade Show, December 7-9, in Atlantic City. 

Jackie Leavenworth believes there’s a way to position properties to have them sell and still have a happy seller. 

Leavenworth said the Internet has changed how properties should be priced, so she recommends a different approach to pricing. 

“When we price a house based solely on a CMA (comparative market analysis), it doesn’t tell us how people are searching on the Internet,” she said. “Too many REALTORS® are afraid to tell sellers the truth and properties don’t get priced properly.” 

Based in Cleveland, Leavenworth said because consumers begin home shopping on the Internet, that becomes the property’s first showing. “How we position the home on the Internet will determine how many second showings we get,” she added. 

She suggests looking at homes and their prices on the Internet through the buyers’ eyes. Then look at the property through the appraiser’s eyes with the CMA. “By putting the two thought processes together, we can properly position homes,” she said. “The bottom line is that when we just do a CMA, it’s pricing through an appraiser’s eyes, without regard to the buyer’s perception. 

A buyer shopping on the Internet typically selects a large price range, like $200,000 to $250,000 in a large geographic area and details like four bedrooms, two-and-a-half baths and two stories. The search site then gives them all the homes in that price range and they look through those properties, usually beginning at the lowest price range. 

“The truth is that buyers will come to an appointment saying they want a two-story with four bedrooms and two-and-a-half baths in a specific school system,” she said. “But many times they end up buying a three bedroom, one-story home in a different school district because it was a better value in their price range.” 

By showing sellers how this new pricing system works, Leavenworth said it helps sellers become more realistic about the market. “And that’s our ultimate goal, to bring sellers’ expectations closer to today’s reality,” she added. 

“Sellers are unrealistic about the price of their home because they’re hurting,” Leavenworth said. “Sellers need more money out of their home than the market will bear and it makes them sad and unrealistic. Using a different, unique and easy “Leavenworth’s Dartboard Approach and Shopping Cart Report,” helps show them the true competition for their home.” 

Leavenworth believes too many properties are overpriced in today’s market. “I don’t believe we’ve ever had a shortage of buyers. We’ve had a shortage of realistic sellers. If a home is priced right, it sells in any market but it has to be priced for the current market. 

“You can ruin your reputation by taking overpriced listings because people see your sign posted in the yard for too long and other consumers think you can’t sell the house,” she added. 

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