I keep seeing example after example in the MLS expired listings for San Ramon, Dublin and Pleasanton that are following the market down and the seller in this California market is losing big bucks that they did not have to.

The MLS history looks like this:

• Property listed at top dollar price
• 60 days later – price reduced to top dollar price for current market
• 45 – 60 days later – price reduced to top dollar price for current market

Are we beginning to see a pattern here?

If the price had been set somewhere between the 60-day & 100-day price, the escrow would be closed in eight out of ten cases and the owners would be on to the next phase of life with more money in their pocket than they are going to get now.

Instead, many sellers are going to do one of three things:

• Continue the pattern
• Pull the home from the market and wait for better times (6 months? 12 months?)
• Keep the price fixed at what they must get and play revolving Realtors

As professional Realtors, we do not serve the best interests of our clients if we do not understand our market, keep abreast of the trends, and have the hard talk with them when taking a listing in a transitional market moving down.

Setting the right price to move the property and maximize the return for the seller takes skill, experience and knowledge. Setting the price often involves overcoming the gap between the utility value of the house and the market value of the house. The utility value is the value placed by the owner that reflects their emotional investment in the property and how the property suits their needs.

Getting the price right is one of the biggest headaches and hassles for someone going the FSBO route – For Sale by Owner. Using Zillow, tax records and the prices of homes sold three months ago most often result in mis-pricing a property.

I feel sad for all of these sellers I see in San Ramon, Dublin & Pleasanton following the market down. They are losing so much money unnecessarily and I can only think that part of the problem is their agent lacks the experience needed to price it right or the backbone to have the needed reality check with the seller.

The market is not going to change dramatically in the near future unless it is forced dramatically downward by unforeseen events. It is transitioning to reflect a realistic and needed correction to the manic bid-up of two years ago.

Our advice to sellers – reality is always better than wishful thinking.

The Harper Team monitors over 50 Real Estate and News Feeds daily to bring you information pertinent to the San Ramon Valley & TriValley real estate market including the communities of Danville, San Ramon, Dublin and Pleasanton. We welcome suggestions.

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