I guess the main point was... maybe I wasn't as smart as I thought I was.
Her home had been on the market for about two months. The seller thought it was "the Nicest Home On The Block." It was a four bedroom, two bath "New England Style" colonial. Lots of white siding, exterior shutters tastefully done, nice shrubbery and landscaping, an oversized lot with some trees... very appealling, or so I thought.
It was a nice home. and as time wore on, it was getting lots of showings... even a few second showings... but no offers. I took several of my Realtor friends over to this listing, looking for their comments and their marketing sugestions. I even held a "Brokers open" to solicit their ideas.
I heard just about everything. Put in brighter light bulbs, remove one item from each room to make the rooms look bigger, change out the kitchen wallpaper... it looks much too frou-frou. (I liked it, and would have used it myself.)
Paint the interior walls a different color, replace the carpeting, send the little "yapping" dog to a relative until the house sells, send the little yapping KIDS to a relative until the house sells, all sorts of very "helpful" suggestions.
Then came the phone call. The seller wanted me to drop over that evening. She had some things she wanted to "go over" with me. What was my first thought ? Of course, she was going to "pull the listing." Give it to a friend... give it to her accountant's daughter who just got into real estate... or maybe what she wanted was something as simple as dropping the price. I was prepared for just about anything.
Now... I don't mean to say that my seller was a "know-it-all" by any means (or mebbe I do... LOL.) Nor do I mean to say that she was "stubborn." According to her... she was simply "firm in her convictions." Un huh...
Then... out she came with it. "Karen, my home has had showing after showing, some nice comments, a few criticisms... which I have remedied... but no offers. I have been thinking it over, and I think I have the answer.
My home has many, many nice features, and many custom touches. But... I don't think the people who are looking at it... "appreciate" how nice it is. Sooo... I want you to raise the price by about six percent. (In today's prices, that would be about $17,000.) That way, with the price decently higher, it will be looked at by a better class of people who will better appreciate all the fine amenities my home has to offer.
I almost fell out of my chair. How silly, I thought. That will totally "kill" the showings.
Now, this took place back in the days before computers, and before the MLS was on the internet. We had all our Multiple Listing Service listings in a "loose leaf binder." The pages... the new listing sheets... were delivered in person to each of our offices every Tuesday and Friday. So, I had to notify the MLS, and the news of the price increase would be delivered on an "update sheet" along with the new listings... the following Tuesday.
Ok... so I submitted the increase. I just dreaded how "embarrassed" I would be when the increase hit my competitors real estate offices.
Bottom line... once the increase came out... showings started up again... and within three days... the home sold at FULL PRICE. Why ? Well, if you listened to the seller... the home was being seen by a "better class of people" who could really appreciate it.
I guess I really wasn't... quite as smart as I thought I was.
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Karen Anne Stone can be found at www.NewHomeHuntersOfTarrantCounty.com and can be reached at KarenAnneStone@aol.com or KarenAnneStone@gmail.com
This was a wonderful story, Karen, and it was gracious of you to share this experience. We can all learn from our own mistakes and judgmental ideas, but it's even better when we can learn from somebody else's! I, too, consider price points when homes aren't selling and have also raised them to fall into a different class. It is possible to price a home too low, and sometimes buyers won't look at it if they think there is something wrong with it -- and evidently there MUST be, they rationalize, because otherwise why would it be priced so low! In fact, I just sold a home in Land Park (Sacramento) that was the lowest priced home in inventory. It wasn't moving, so we raised the price.
If you don't mind me asking, what year did that happen, and do you think its a realistic option today?
Good post. You have to give it up to seller, sometimes they are actually right HAHAHA. I did not see this story ending well, but I'm glad it did.
Hi Karen: Yes, sometimes the sellers are right, and we are wrong. We may be professionals in a neighborhood, but unless we have lived in our seller's home and know all the neighbors on that street, it's still a guessing game on price. In 2002, a seller told me my estimate was low and wanted to price it much higher, like $50,000 higher than all the comparable sales. I put my trust in her judgment and had multiple offers. Pricing is an absolute art. We learn something new every day -- or at least we all should.
Hi Susie: Ummm... errrr... just what is that... ummm... animal ??? Perhaps we could replace it with a nice pretty flower... perhaps... LOL.
Now... let's see. You enjoy my writing, which makes you want to read more and more. And my knowing that you enjoy it makes me want to write more and more. Sounds like a nice combination to me, girlfriend ! Thank you for your kind comments. You made me smile.
Hi Kelly: I really wish that could happen today, but perhaps not until early next year. Thanks for visiting. Karen Anne
WOW. I actually OMG'ed out loud while reading! :o) And it worked?! Just WOW.
Gave you a FIVE because this is a great post and really got me. Well written and surprising lesson!
Karen Anne - This is a wonderful story and I have seen it happen even in today's market. Sometimes the obvious is not so obvious. Today, i think it could be a wise choice, especially after staging.
BTW.......I am happy to see you getting some comments! :)
Hi Paula: Thanks for your kind comment. And I agree... sometimes what is obvious to some... is totally foreign to others. That's why a "second pair of eyes" can be such a good thing. Karen Anne
Great story, that's pretty much my Dad's theory. If it doesn't sell, raise the price. It has worked for him many times in the past.
Hi Darleen: Yes, that was the whole idea behind the story. I thought she was out of her mind, but her idea actually worked... thus the title of my blog post... "Maybe I Wasn't As Smart... As I Thought i Was... "
It taught me a little bit of humility. I know I can always learn new things, and the above story, when it actually took place, reinforced that idea. Thanks for your comment, Darleen.
Karen Anne - I have talked to all except one, who doesn't return my calls or e-mails. (VERY FRUSTRATING!) One agent said she thought it was priced too low. Most the others thought it was a "good price". I then held an agent open, hoping to see what others thought. All thought that the price was a "great price" except for two agents from my office, who thought that the price was 15,000-20,000 too high. So that left me not having any clue WHAT to think.
So I developed a theory. What if, because it is such a nice house, people expect it to be listed pre-market-downfall price instead of at current market value? What if that is what is scaring everyone? They see the beautiful pictures and think "hmmm...obviously there's something wrong with it....."
A few people who have seen the house have bought more expensive properties. One bought a lower priced one.
Ah, Karen Anne. You, I, and our late night romps.
I will send it to you. Let me know what you think. Also, it's been on approximately 2 months. I know, I'm impatient, but I surely thought with all these showings it would have sold by now!
Karen Anne~ great story! I can understand how that can work for a custom home or a unique home with very few comps. Good for you and your seller and for taking a team approach in the pricing decision.
I think you're pretty smart, pretty witty, and pretty darn talented! :)
I have the opportunity to comment on 20 posts so I am working through 20 of yours. YOU SO DESERVE to be a millionaire.