Lee Morof's Real Estate Blog

I am a RE/MAX Associate Broker/Attorney selling homes in the North Woodward Area of Oakland County in Southeast Michigan. Unfortunatley, our market has been declining over the last several years. Approximately nine months ago, I had a listing appointment with a couple in Troy, Michigan who needed to sell their home due to a relocation. I provided them with the then current comparable sales and listing data which they found disappointing as most sellers do in a declining market. I did not agree to list their home at the top of the market as they insisted and they found another Realtor who did. I have kept track of the status of the home on the Multiple Listing Service and now, nine months later, it has still not sold. In fact, it is now listed at a price below that which I think I could have sold the home nine months ago. I have learned that in a declining market, what few buyers there are look at and buy homes between the bottom and middle of the market because, understandably, they want the best deal.  So, when the top of the market seller decides to lower his or her price downward they find themselves CHASING the top of a declining market. Unfortunately for them, they end up losing more money in the long run. In the case of the Troy Michigan real estate sellers, I felt that they needed to price their home at $359.000. The high bidding Realtor listed them at $375,000. In the nine months that have followed, they have adjusted the price to $364,900, $359,000 and now it is priced at $350,000. Of course, they have continued to pay for utilities, taxes, insurance and to maintain the home. By my calculations, I could have saved them about $20,000 had they listened.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640