A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
Pushing the market is the job of a Realtor
The only way prices go up in Real Estate is if Realtors have
the patience to push the market higher. I use the word patience, because you
will need patience in order to deal with what may come from putting a higher
price on a listing.
First it may take longer to sell a listing that has a price
that is higher then what is the norm for the area. Next your client may get a little
worried that the house has not sold as quickly as they had hoped, and that will
take the most patience of all. Clients have a tendency to call all the time
when their home has not sold and it takes patience, especially when you have
nothing new to say, to deal with those questions and no matter how much you
explained to them at the start of the listing that putting a higher price on
the home may slow down the sale, they forget those words and want answers.
There are other dangers when you put a higher price on a
home, other than a slow sale. First, once you price a home, even a high price,
the home owner, no matter how much you explain to them that you are testing the
waters, now feel that the price you are asking is the correct price and trying
to get them to lower the price may be very difficult and as a listing agent you
may end up losing the listing.
A very
common occurrence is that a home owner will agree to a higher price and then
when it does not sell, they refuse to lower the price and after the listing
expires, they get a new agent that has them put a lower price on the home and
the house sells. You as the first agent did nothing wrong except try to push
the market, but human nature is hard to fight and that’s why I have a great
amount of respect for those agents who risk the listing by pushing the market.
In my business of Property Management in Anaheim Ca. My
approach is, before I show my clients the comps for the area; I ask them how
much they think their home is worth. 90% of the time they will tell me they
have not thought about it and I know that is not true, so I push them and I will
usually get a number that is higher than the comps. I tell them that we should
list it at their number, unless it is way out of line, and give it a couple of
weeks to see if we get any activity. This is a risk on my part, but it also
allows a home owner to get their price out of their system. It is not always
easy to get them to lower the price but again, I am willing to take the risk
and sometimes the home will sell close to or at the higher price and that is a
great thing.
Pricing a home is not an exact science and an agent needs to
keep an open mind. It is much easier to sell a home that is prices like all the
others, but it takes a little grit to push the market.
A.D. Cantelmo Property
Management Specializes in
Property Management in Orange County Ca.