The Facts . . .
1. Park City has enjoyed many years of record appreciation (sometimes double-digit annual appreciation), which sets the stage for the Park City Real Estate Myth -- the belief this will continue forever.
2. Correctly priced homes are selling within a reasonable period of time (125 days on average) at higher prices than a year ago. We have seen between 3 and 23% annual appreciation), depending upon the area.
3. Overpriced homes (often 10% or more above recent comparable sales) are staying on the market an average of 260 days without selling. Two out of three listed homes are priced too high, illustrated by the fact that:
- Days on the market are increasing every month among unsold active listings;
- We are seeing remarkable price reductions (5 to 10%, or more) and multiple price reductions when properties fail to sell at their original list prices; and
- Many of these listings expire without selling. Buyers are rejecting the property, its price, or both. Once a listing expires, that property has an MLS history of having been overpriced and not sold. Not good!
Many property owners who list their properties for sale are disappointed after going through the hassle and inconvenience of preparing their homes for showings, only to get low-ball offers or no offers at all, resulting in no sales.
How do their Realtors feel?
Realtors who take overpriced listings are disappointed because they invest a lot of money to list and market properties with no sale to show for all their effort. Realtors get paid exclusively from commissions. So, NO SALE = NO COMMISSION; and yet the agent spent their time and money trying to sell the property.
Each agent decides how much time, effort, and money will be spent on a listing. If an agent takes an overpriced listing, knowing that it will not sell at that price, the agent will often cut back on his or her efforts and in marketing the property. They, of course, don't tell the sellers this or they would be fired. But think about it, why spend money if you're not going to get your out-of-pocket expenses reimbursed through a commission? Why do Realtors take overpriced listings? It appears to be a losing game.
They take overpriced listings, knowing that they won't sell (or even get offers) at high list prices because that's the price the sellers said they wanted for their home. They take overpriced listings knowing it is just a matter of time before they can start hounding their sellers to reduce the price, constantly urging the homeowner to lower the list price (perhaps many times to get to the correct price), to be able to eventually sell the property, and get paid.
It's understandable, but is it honest?
No, it's NOT! Property owners need to be able to rely on real estate professionals. They should be able to count on a Park City Realtor to tell them the truth about the market, even if it's not what they want to hear. They may not like the truth, but misleading a seller or buyer is not an acceptable option.
There will always be some sellers out there who don't need to sell their properties, and they are perfectly happy listing them way above the market, in the hope that some sap will come along and overpay for their home. Frankly, that just doesn't happen.
Buyers, these days, are very well-informed of property values. They are on the Internet all the time, and they see which properties sell and which ones do not, and they know why. And, if a buyer is working with a Realtor worth his or her salt, that agent will not let their client over-pay for a property.
What's the alternative?
The Wilstein Team has been helping buyers and sellers buy and sell Park City and Deer Valley properties for over 30 years. Through great markets and lousy markets, we have always sold between 17 and 21 properties each year for every one property sold by the average Park City agent.
WE SELL PROPERTIES THAT PREVIOUSLY EXPIRED WITHOUT SELLING
We would welcome the opportunity to have a candid, non-pushy conversation with you about what's selling in the Park City market and why. Our success in selling expired listings is the result of honest advice about the market with no strings attached. No hype. No empty, disappointing promises. No B.S.
WE SPECIALIZE IN SELLING LISTINGS THAT PREVIOUSLY EXPIRED WITHOUT SELLING
Our sellers get two things from us: #1, a sale (no time wasted on the market without a sale); and #2, more money in their pockets. Check out our track record in the ABOUT US section of our website. We'll tell you the truth, give you good advice, and get your property sold!
[Replace the Customize Your Own Market Report ad below with a new ad for a free Expired Listing Consultation and free A/B Repairs List inspection. The CTA ad will open a new fill-in form.]