Austin TX Real Estate - Hill Country Austin Lakeway Homes for Sale: Sellers Net Less to Sell for Higher Price

Sellers Net Less to Sell for Higher Price

When selling a home, is the sales price the most important thing, or is it the net in your pocket?

There is a listing I have been watching because I wanted to see how the end strategy would turn out.

I had buyers interested in this listing and we submitted an offer. The asking price was originally $158k and did consistant price drops every 2 weeks.  When we submitted our offer, it was listed at $142k. We submitted an offer at $134k knowing they were about to have another price drop since it was the end of the next two week cycle.

They countered back full price.  WhatExcuse me? You've been on the market for 3 months with no other offers and only a handful of showings, and you counter full price?

austin tx seller throwing money awayI spoke with my buyers and we increased our offer to $136k... the sellers responded back at full price again...   I got an email from the listing agent stating (paraphrased) "My sellers already countered back full price and will not accept anything lower." 

Fast forward a couple of months and the property is now sold.  What did it sell for?  $138k!!  Why am I laughing??  Because they had to continue to make mortgage payments and tax payments and insurance payments and utility payments for two more months to sell the property for $2000 more, PLUS they also gave the buyer's agent a $500 bonus.

Did the sellers actually make $2000 more?  You do the math!  In this price range, and using an interest rate from 2003 when they bought the property, they were probably dishing out about $1400 a month with all housing expenses. Multiply this by the extra two months it took to sell, and that's $2800.

It COST the sellers $1300 to sell for $2000 more two months later.

So, I ask again, Is the sales price the most important thing, or is it the net in your pocket?? 

It's ok for a seller to not be so savvy with numbers as they aren't the professional, but a good agent will explain these numbers to you in a way you will understand. Call or email me today if you want to know all your options.

**Are You Packed Yet?**

donna harris Realtor Austin TX blog

Donna Harris, REALTOR®
RE/MAX Austin Skyline
www.DonnaHomes.coma
Donna@DonnaHomes.com

Austin TX Real Estate and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, Cedar Park, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Hill Country Austin TX Real Estate and beyond. Whether you're buying or selling an Austin home, I'll be with you every step of the way. 

For real time Austin TX listings, click here.

** #1 Agent in my Office for all of 2008 **

Copyright© 2011 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
*Sellers Net Less to Sell for Higher Price * was first published on donnahomesblog.com.

Comment balloon 10 commentsDonna Harris • January 21 2011 02:00PM

Comments

I like the way you think.... See you at TAR in Austin in Feb

Posted by Danny Frank, The Real Estate Expert (Heritage Texas Properties) over 7 years ago

This is absolutely right...and I do think sometimes listing agents get in their own way.

Posted by Karen Fiddler, Broker/Owner, Orange County & Lake Arrowhead, CA (949)510-2395 (Karen Parsons-Fiddler, Broker 949-510-2395) over 7 years ago

Donna

Depending on the sellers situation your offer was a better offer at $2,000.00 less.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) over 7 years ago

Donna - I was in a similar situation last year, but my clients offer was eventually accepted.  I presented the listing agent, who did real estate on the side, an estimated net sheet.  After reviewing it with the sellers they accepted my clients offer.

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) over 7 years ago

Sad but some sellers get caught up wanting to win the negotiation battle and do not realize the implications of having to win or get their way.

Posted by Mike Wong, Realtor: Commercial, Residential, Leasing, Invest (Keller Williams Realty Southwest) over 7 years ago

as in retail, the first loss is the best loss -- similar resoning behind the mass merchants dumping inventory after christmas -- mark it down and move it out!!!!!!!!

Posted by Roy DuBose (Austin Distinction Realty) over 7 years ago

Hmmm, I would think the seller was hard to deal with. I always say a bird in the hand is better than two in the bush.

Posted by Steven Nickens, R(S)GRI ABR, Maui Real Estate Hawaii (Elite Pacific Properties Maui) over 7 years ago

Hi Donna, Exactly there is a holding cost and also maintance cost. Great post.

Posted by Farooq Khan, Real Estate Broker - CDPE (Pacific Realty Partners) over 7 years ago

It could very difficult to know exactly whose decisions those were. We just have to assume that in the end, it's the sellers (principals to the transaction) that had the ultimate decision. Some sellers make hasty decisions and maybe come back to their senses when reality sets in. Perhaps they were tired of fighting and finally gave in.

Doesnt make sense but who said this business we're in makes the most sense all the time? Smile.

Posted by Loreena and Michael Yeo, Real Estate Agents (3:16 team REALTY ~ Locally-owned Frisco TX Real Estate Co.) over 7 years ago

It's a sad sad world when an agent's broker has to threaten with an Ethics complaint because they don't like the way their own agent did things, so let's blame the other agent. Because of this, even though the listing agent was never mentioned by name nor the area of the property, the above post has been modified to remove some details of the listing agent.

Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com) over 7 years ago

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