Many Sellers Aren't Listening to the Facts

I'm walking away from more listings lately than ever.  More this year than in all the 25 years I've been in the biz.  And I'll keep doing it when sellers won't face the facts.

I was on a listing appointment for Blue Island real estate last week.  It was a legal 2-flat that looked like a single family residence with a 3 bedroom unit on the main level and a 1 bedroom unit upstairs.  The sellers lived in another home and needed to get one of their properties sold.  They said whichever one sells first means they'll keep and live in the other one.

I explained today's Buyer's Market to them and showed them all of the comparable listings.  However, this was a unique set-up so I got as close to their unit as possible.  They seemed to understand, even though they were unhappy with the comps.  However, when I gave them my suggestion for a listing price, the wife replied that they couldn't sell it that low. 

Even though she seemed to understand everything I showed her, I guess she didn't understand what it all really meant.  Or she didn't think the facts pertained to their property (something I'm dealing with many sellers lately).

Unfortunately for them, the wife purchased the property in 1987,  before the Seller's Market, but I truly don't think the 2-flat is worth much more today than when she bought it.  Add to that the fact that they put money into it doing some remodeling.

I was in the same situation with a Berwyn home for sale but this was purchased by an amaetur flipper who paid top dollar in the Seller's Market and is now in trouble.  Instead of turning it over for a quick profit she became a landlord to a friend who recently lost her job and can no longer pay rent.  There was no doubt that she would lose money if she sold it now and she understood everything I told her.  Her choice is to get another tenant, take a loss, try a short sale or let it go into foreclosure.  This was not a listing I even wanted so I haven't kept in touch and she did not list it.

I would have liked to take the Blue Island listing but I cannot take it at the price the owner wants.  It would be a waste of my time and efforts and I'd only end up with an unhappy client.  She wanted to list it $20,000 over what I thought was the high end of the range.  In fact, the closest comparable was listed at the price I suggested and still not sold.

Blue Island is a very affordable town and claims to be the oldest Chicago suburb, although I've read at least one other city make that same claim.  It's an interesting little town with some unique old mansions and all kinds of older home styles and supposedly Al Capone owned a home in Blue Island. 

But the truth is, the median single family home price in 2007 was $105,444.  Drive 15-20 minutes west into Orland Park and the median home price in 2007 jumped to $355,000.  And that is the moral of the story.  If you buy a property in a lower priced community, it is likely that it will appreciate at a slower pace than higher priced towns.  And that is the case with the 2-flat that I would love to list if it was priced properly.  These sellers did have it for more than 10 years yet will lose money if they sell it now.  The lure of affordable living in lower priced towns can have a price in the long run.

So I will have to once again pass on a listing.  I will continue to do so with unrealistic sellers.  It's hard enough to sell a listing that seems to be priced right in today's market.

• Rate this Post!

  Select Your Rating:

  • 5 Stars (Excellent!)
  • 4 Stars
  • 3 Stars
  • 2 Stars
  • 1 Stars (Poor)

• Share this Post

  Share With A Friend:

  Your Name Your Email

  Friend's Name Friend's Email

  Optional Message

  Send

• Print
• Social Bookmarking

  Add to Bookmarks: