Agents balk at overpriced homes is the cover story in the Sunday Homes Section of the Contra Costa Times today. Kathleen Lynn of the New Jersey Record wrote the piece. Everything in quotes is taken from Kathleen’s article.

CCTimes says – They (real estate agents) don’t want to waste time marketing houses buyers won’t bother to look at.

This article strikes at the heart of the major challenge in selling a house – pricing it right.

• The seller wants top dollar
• The agent wants to get it sold

You can’t accomplish either of these goals if the house is not priced right to bring in the buyers. We (Realtors as a group) continue to meet sellers that think they control the price. They are sorely mistaken. They can set whatever price they want, but, in the end, the market determines the price.

In an appreciating market, you can set the price at the high end and the market will eventually find you. But, in the current market, if you set the price high, you will most likely end up chasing the market down and wind up losing more money than if you priced it right to begin with.

“Sellers tend to rely on agents to set their price, according to the 2007 National Association of Realtors profile of buyers and sellers. When asked what they want most from real estate agents, 16 percent of recent sellers said they wanted help in pricing the home competitively, the NAR found.”

In my opinion, the first sign you may have the wrong agent is when they ask you what your home is worth. (As a home seller, always ask the agent first, if they insist on you going first - thank them for their time and move on) An agent may be asking to see how far apart your price is from what they tend to suggest, but, unfortunately, there are still a lot of agents out there that lack the experience in real estate to price a home properly in a challenging market like today’s. It’s also sad to say that many real estate agents have little or no business background or negotiating skills. Thus, they tend to shy away from anything that looks like it may be confrontational – like talking reality with a misinformed seller.

“Sometimes that means they get news they don't want to hear. Two years ago, for example, she did a market comparison for a couple thinking of selling. At that time, she valued their house at $569,000. They weren't ready to sell then, but they recently came back to her because they are ready now. In today's softer market, she suggested listing the house at $539,000. The sellers' reaction: ‘Are you kidding me?’”

There is hope, though, for all involved. Housing prices seem to be stabilizing despite continuing negative media coverage. The effects of the new lending standards have had their effect in reducing the number of qualified buyers available. This is especially true in the first time buyer market – which influences the move-up buyer market.

Continued downward pressure on local housing markets is going to come from continued foreclosures in the immediate area or price slashing from new home builders that are trying to survive.

Price it Right – Get it Sold!