Sometimes the Homeowner Is the Highest Bidder
An agent came to me recently with a situation I think most of us have faced at some point.
They went on a listing appointment and valued the property at approximately $1.2 million.
The seller wanted another opinion, so they hired a professional appraiser and paid several hundred dollars for an independent appraisal.
The appraised value?
$1.2 million.
So far, so good.
The seller signed an exclusive listing agreement at $1.2 million. The agent got to work. Photography, video, marketing, preparation, all the things that go into bringing a property to market properly.
About a week later, the agent brought over the MLS listing agreement. The seller crossed out $1.2 million and wrote in $1.5 million.
A $300,000 increase.
The property has been sitting on the market ever since. No offers. In fact, no showings.
So let me ask you: What would you have done?
Would you have listed it at $1.5 million? Or would you have walked away?
Here’s what makes the situation even more interesting. There are currently about four months of inventory in that town, and roughly one in four listings is selling.
This is not a market where buyers need to chase every property that becomes available.
They have choices. And when buyers have choices, pricing matters even more.
There’s an old line I love: Sometimes the homeowner is the highest bidder for their own home.
They may believe their property is worth $1.5 million. They may want $1.5 million. They may even need $1.5 million for whatever comes next. But none of those things establish market value. The market does.
Taking an overpriced listing can feel better than losing one. You get the sign. You get the listing on your website. You get another property to market.
But then what?
No showings. No offers. An increasingly frustrated seller. Eventually, the conversation turns to why the agent isn’t getting the home sold.
And now you are defending a result you predicted before the listing ever hit the market.
Our job isn’t to tell sellers what they want to hear. Our job is to tell them what they need to know.
This week’s assignment is simple:
- Look at your current listings and identify any where the market is already telling you the price is wrong.
- Go into your next price conversation with evidence. Show the inventory, recent sales, competing properties, showing activity, and what buyers are actually choosing.
- Decide before your next listing appointment where your line is. At what point are you willing to walk away rather than attach your name, time, and money to a price you cannot support?
Sometimes the best listing you take is the one you price correctly.
And sometimes the best listing decision you make is the one you walk away from.
Would you have walked away? I am curious to know.
Talk soon,
Kory