Consequences of an OVER Priced San Jose Home for
Sale
When a San Jose home for sale
is OVER priced the consequences may leave a San Jose
home seller hugely disappointed.
In January 2013 a lender referred someone to me that wanted to
"sell my home quickly." During the two hours we met to discuss the sale of their
San Jose home I felt there was something they
were not telling me. When I asked about their sense of urgency I was told there
wasn't any.
I left them with disclosures to complete and with a list of
action items for them to ready their San Jose home for sale. The plan was to list the
home for sale as soon as they de-cluttered and made a few repairs.
When I followed up with them my emails and calls went ignored.
Of course, I did not give up. These people needed help and I knew it despite
their unwillingness to be honest with me.
They appreciated my enthusiasm and diligence I brought to the
table but decided to list with another agent.
When I saw the listing on the MLS I noticed the list price was
approximately $100,000 over my
recommended list price. In order to protect the innocent, or guilty,
depending on how you look at it, exact dates will not be provided in my
illustration.
- The property listed on the MLS towards the end of January 2013
- The first $50,000 price reduction took place approximately 6 weeks later
- The second $30,000 price reduction took place approximately 3 weeks after the first price reduction
- The property went into contract 3 months after it listed. The list price was now reduced to $19,000 above my recommended list price
Keep in mind the San Jose and Silicon Valley real estate market
was HOT HOT HOT in January
2013 and continues to get HOTTER. The inventory of San
Jose homes for sale continues to diminish. This creates multiple offers
with bidding wars. Why was this home not selling?
We will never know what the San Jose home may have
sold for if it had been priced right when it first listed on the MLS. The only
reason I track these sales is so that I can use them as case studies with other
sellers who want to over price their home.
- Would these San Jose home sellers have netted more than if they had not over priced their home?
- Would the sellers have netted more if they paid a full commission?
- Would the sellers have netted more if they had hired a different agent?
- Would the sellers have netted more if they had been honest and forthcoming with their situation?
We will never know. We can only speculate.
There is controversary over taking OVER priced listings. One
thought is that if the sellers are truly motivated and have to sell, there is no
point in losing the opportunity to list the home because the sellers want to
list high.
I understand that San Jose
home sellers have a choice. This San Jose real estate
agent is all about setting the right expectations and having happy,
satisfied clients. Listing a San Jose home for
sale $100,000 OVER market comparable properties will more likely than
not leave a seller unhappy and disappointed.
At the end of the day, in the seller's mind, does this reflect
poorly on their agent?
Consequences of an OVER Priced San Jose Home for Sale - by
Kathleen Daniels, San Jose Homes for Sale - San Jose Real Estate Agent
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