Overpriced Leavenworth Homes For Sale

Nothing is more frustrating to Leavenworth home buyers and real estate agents than a new listing that comes on the market in the spring at a price high above market value.  I understand the motivation of the seller to get as much out of their property as possible, but their real estate agent should know better.

It is not always done on purpose, but sometimes this is done just to get the listing and in the real estate industry we call this “buying the listing.”  This is specifically addressed in the REALTOR Code of Ethics:

Standard of Practice 1-3

REALTORS, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.

 

Unfortunately, I don't think many REALTORs are being reprimanded for this behavior.

 

Overpriced real estate listings

What is the punishment for overpricing a listing?

I mean really, it's 2012, didn't you get the memo? Home prices have fallen since the real estate boom of 2006-2007.

Leavenworth real estate memo

With the snow melting, we spend a good portion of our time doing market analysis for home owners.  This includes time in front of the computer, but also time in the field previewing houses around Leavenworth and Lake Wenatchee and talking to other agents and appraisers about values and market trends.  (You can click here if you are a homeowner thinking about selling and want to know the value of your Leavenworth home.)

Homeowners have a plethora of reactions after we prepare our report:

  • They hire us to sell their home. Upset by the loss of value, but appreciative of our skill and honesty.
  • Decide that it's not worth it to them to sell in today's market
  • Hire another agent who will list their home at a higher price

Many of our clients over the years are clients who are re-listing their home after being wooed by the siren song of overpricing the previous year.  Unfortunately, it's much easier to sell a home when it first comes on the market and there is some stigma attached to homes that have been on the market for an extended period.  These are often called "stale" listings.  We usually can help these sellers, but we are certainly playing catch up.

Still not convinced that you should be aggressive about listing your house at market value? I'll leave you with one more chart - after all, a picture is worth 1000 words.

The chart below demonstrates the danger of overpricing, even when the motivation is to build in "wiggle room" to the price. ( I wrote previously about the "myth of wiggle room.")

 

 

Dangers of over pricing a Leavenworth house for sale

 

 

 

Comments

You know, there is just no satisfying our competitors. Pricing homes to sell is a practiced skill. Sometimes you win and everyone is happy. If you overprice a home, you'll know it quick enough.

Rumor around town is that some agents were upset with this article. None have come to me directly and I'm quite happy to post their comments or a rebuttal if they want me to. I found it interesting that a recent Homegain Survey found that agents nationwide report that 66% of buyers and their agents think homes are often overpriced. 34% surveyed say homes are less than 10% above market value. 28% think prices are 10-20% too high and 4% report that listing prices are 10-20% above market values. http://blog.homegain.com/homegain/homegain-releases-4th-quarter-2011-national-home-values-survey-results/#Q3

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Allyson and Geordie Romer

Leavenworth real estate agents - Allyson and Geordie Romer

For over a decade, Allyson and Geordie have been serving clients in the Leavenworth-area real estate market. Together, they work tirelessly to stay on top of the regional market and present the most relevant opportunities to their clientele.

When not in the office, they can be found exploring the endless recreation opportunities of the area in all of its seasons.

 

Testimonials

 

Geordie provided excellent real estate representation! We appreciated his detailed knowledge of the market, his up front and honest approach, and his negotiation skills.
As reviewed on Zillow  – 

- Laura Anderson

 

 

As “west siders” looking for a getaway near Leavenworth, Geordie provided insight … his knowledge of design features important in a “snowy winter wonderland” was appreciated. Thanks Geordie!
As reviewed on Zillow  –
 

- Jean Stern

 

 

Geordie made this somewhat complicated transition easier for us…going above and beyond to help us work through issues that came up during the sale of our parents home. We appreciated his knowledge, attentiveness to details and his willing spirit.
Our family is grateful for Geordie!
As reviewed on Zillow  – 

- Terry Foster

 

 

Geordie was great in every way. We have been looking in the Leavenworth area for some time, and Geordie was absolutely the best for local knowledge, history and depth on neighborhoods, developments and the local market trends. He was very quick to respond (even when he was on his vacation) and worked very diligently to get all of our questions answered in a very timely fashion. We would recommend him highly to anyone looking to buy or sell a home. Very friendly, and helped us navigate all of the local options before we made an offer on the property that we purchased. Thank you, Geordie!

As reviewed on Zillow  – 

- Ryan Olsen

 

 

It was such a pleasure to work with Geordie and his wife, Allyson on our cabin purchase. They showed us a variety of locations, listened to what we wanted and helped us find the perfect match. Everything was smooth and not stressful, just relaxed and easy. We would definitely recommend Geordie and use him again if the need arises!

As reviewed on Zillow  – 

- Cammie Schlosser

 

Moving to Leavenworth?

Are you looking for a cabin or a condo in Leavenworth that your family can use as a home base when climbing, skiing or hiking around Leavenworth or Lake Wenatchee?

Maybe you rent a house here and have decided to stay, surprised how a summer of rafting somehow turned into seven years.

Maybe it’s time to escape the hustle of the big city (and its rain) and move to Leavenworth with its four seasons.

Maybe you bought a condo years ago, don’t seem to use as much, and it’s time to sell.

Whatever your motivation, we are here to help. If you are buying a home, the best place to start is with our Homebuyer’s Guide to Leavenworth.