3 Ways Client Overconfidence Sabotages Deals
Daily Real Estate News | Wednesday, December 07, 2011
Overconfidence in financial decisions regarding real estate can serve as a deal-killer, says Inman columnist Tara-Nicholle Nelson.
In a recent column at Inman News, Nelson offers some of the following most common offenses that stem from “overconfidence”:
Overpricing: Sellers may be overconfident in their home’s appeal. “Overpriced homes don't get shown to buyers nearly as much as they would if they were properly priced, because buyers see them online up next to much bigger, better homes in the same price range, or next to similar homes that are much better priced, and decide to not even bother coming to see them unless and until the seller's overconfidence is cured,” Nelson writes.
Lowball offers: Buyers may not fully understand the market. They read national headlines from the media that home prices are down and they think its reason enough to submit an offer on a home way below the asking price. “There are plenty of buyers out there who don't understand that the down market does not mean that sellers are giving homes away -- nor does it mean that banks are desperate to offload foreclosed properties,” Nelson says.
Ignoring the data: Buyers and sellers today have access to a variety of data to find out what recent similar homes have sold for, including even photos of the homes. They can use such data to make smart decisions on setting list prices and submitting reasonable offers that are “based on the facts and strategy, not emotion and guesswork.”
Source: “5 Ways Overconfidence Kills Real Estate Deals,” Inman News (Dec. 6, 2011)
Doug Spiers / Associate Broker
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