Austin TX Real Estate - Hill Country Austin Lakeway Homes for Sale: March 2008

Price Perception as Buyer vs Seller

Don't you love it when you have a client that thinks unrealistically on both sides of the spectrum?  I mean, when they're a seller, they think they can get X amount for their house, but if they were buying that same house, they would only pay Y for it.

I have this great new listing that is priced very well.  It is about 2000 sqft, built in 1996, has a POOL, and is priced at only $219,500.  This is very competitive for this area.  I got a call from a neighbor this afternoon asking about the house.

Neighbor: How much is the house?
Me: $219,500
Neighbor: WHAT? That's way too high!  How much would it sell for without the pool?
Me: Probably about $207k, why?
Neighbor: I have the exact same floorplan, but I have 4 bedrooms, not 3 like your listing so you're priced too high.
Me: Do you have a Study?
Neighbor: No
Me: Then it's the exact same except I'm marketing it as a 3 bedroom plus a study.  What would you sell your house for today if you were selling it?
Neighbor: No less than $210k.
Me: If you would sell for no less than $210k WITHOUT a pool, why is $219,500 too much for your same house but with a gorgeous pool and perimeter fence?
Neighbor: It just is! 

This conversation continued, and it just AWE's me how differently people view their home if they were selling it verse if they were buying it.  It turns out that this neighbor is looking for an investment property for a rental and doesn't want  to spend more than $180k, but he's not going to find that in this area.  He lives right there, and even though he wants X for his house, he thinks his neighbors should only accept Y.

The thing he isn't considering is that if his neighbors all sold for Y, he would never get X because they would all bring down his value.

What are some of the ways you've tried to explain this situation to buyers and sellers?

Comment balloon 13 commentsDonna Harris • March 28 2008 09:01PM
Price Perception as Buyer vs Seller
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