Is my realtor overly optomistic?

Question

I'm selling my primary residence (goes on the market in 2 weeks) and my realtor thinks I can get $50k more than I ever thought I would.  He's a friend and absolutely killing it as a realtor so I trust his (and his office that went over the comps) professional opinion.

He wants to list my house at the higher end of the comps for 2 weeks and then drop it $20k if there's not enough activity.  Does this sound like a good plan or not?  Maybe I'm not accurately seeing the value of my house because I know how absolutely hideous it was before I renovated it top to bottom.

I'm moving into my girlfriends house so I'm not really in a rush, but there's obviously still holding costs.

Any thoughts?

Russell Brazil · Answer

Every single client I have thinks they know the market better than I do.  They either way over estimate the value of a property, or way under estimate.

Rolanda Eldridge · Answer

Account Closed...Ask for the supporting docs...Comps for the last 6 months

Account Closed · Answer

I'm going to follow his recommendations.   He knows my situation and I completely trust him.  Again, he's a friend and he knew I was going to use him regardless of his recommended listing strategy.   After all, what's the point of using a professional if I don't trust their expertise.

Account Closed · Answer

Thanks for the input.  I have seen the comps over the last 6 months and I think it's in the ballpark but nothing exactly the same (obviously).  Every other one has either extra 1/2 bathroom,  or. 1 acre less than me, slightly nicer,  or older mechanicals,  Ect. I was just curious if this pricing strategy was a standard realtor tactic to try and get more commission at the cost of my timeline/ monthly expenses.   BTW,  I'm referring to about a $300k home so it's pretty significant.

Phillip Proctor · Answer

It sounds like your Realtor has his finger on the pulse of your particular location and surrounding areas, and that is why he is suggesting to follow his lead.  Maybe the schools in your area are of better quality or it is closer to mass transportation.  Maybe the city center has unique shops / entertainment, or there is  general 'buzz' connected to your city.

If his office went over the comps also, I would say give it a shot.

Being that your are not hurting for a place to live gives me all the more reason to suggest that you give it a go.

But, you need to sit down with him and ask him why he thinks this marketing plan would work.

Aaron Lovett · Answer

It's really impossible for anyone to say without doing an analysis of that exact home.  Did he go over the comps with you, look at DOM, expired listings, etc?  If the market supports his listing recommendation, then there you go.  If not, you'll know soon enough.  I would get a couple other agents to run CMAs for you, or get an appraisal if you are very concerned.

I'm not a big fan of the 'list it high at first and then drop the price if there's no activity' approach.  In my experience, that causes some potential buyers to shy away from even considering it, and it might stay on the market longer.

Of course, you didn't mention sales price, so if it's $50k high on a $500k home, that's not quite as big a deal as on a $250k home.

Is my realtor overly optomistic?

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