Because there are people out there who refuse, absolutely refuse, to accept reality. I recently advised a friend on a price opinion he was preparing and between the two of us, came up with a brutal, but honest price that would get the job done.
I asked my friend how it had gone, already knowing the answer and sure enough, the happy homeowner had made his decision on “two things: price and marketing”. By price, of course, he meant, whoever promised him the highest price and by marketing he meant a promised schedule of newspaper ads. Ha ha ha.
Buyers have moved to the Internet. Not a single buyer in New jersey is going to see your wonderful quarter page ad in Greenwich Time and, sadly, most Greenwich residents are locked into their existing homes and couldn’t buy your place even if they wanted to. Besides, they’ve moved to the Internet too.
And price? Going with the agent who offers the highest listing price is so breathtakingly stupid that I assured my friend that he was far better off without adding this moron to his client roll. Suppose you had some GE stock to unload. If one broker told you that he could move it at its current price of $12.50 and another told you that he, like you and unlike the rest of his competitors, could see the “real” value hidden in your particular shares and would advise offering them for sale at $75, which broker would you choose? (No peeking, Mad Monkey). Broker number two has just told you that he’s a liar who will tell you anything you want to hear if it will get him your listing. And if you’re dumb enough to reward him for that, then you deserve to sit in your unsold house for a long, long time. Which you will.