Here are the five stages of an overpriced listing, according to John Walkup and the UrbanDigs platform:
1. Denial: 0–30 Days
The seller is in denial. “Let’s just test the market with a higher price and see what buyers say.” There’s optimism that the right buyer will come along and pay the asking price, even if the early activity suggests otherwise.
2. Anger: 31–60 Days
“It’s your marketing! You’re not doing enough open houses. Get better photography. Do weekday open houses. Give me different placements in different areas.” These are all the things sellers tend to gravitate toward 30 to 60 days into an overpriced listing. The frustration builds, but the asking price remains largely unchanged.
3. Bargaining: 61–90 Days
Now you’re looking at a property that may need a price adjustment of at least 4% to 6% to attract buyers if you haven’t received an offer yet. But instead, sellers say, “Let’s do a small price cut. Let’s buy down someone’s mortgage rate,” or come up with some other incentive to get buyers to make offers. Anything but making the necessary price adjustment!
4. Depression: 91–120 Days
“Nobody wants the property. Maybe we should pull it off the market and try again in the spring. Maybe we should rent it.” At this point, the listing has become stale, buyer interest has dwindled, and the seller is understandably discouraged.
5. Acceptance: 120+ Days
Now the property may need a price adjustment of 10% or more, and the seller finally asks, “What will it actually take to sell?” And then you go back to the price you recommended at your very first meeting! You adjust the listing and eventually find a buyer, but you’ve wasted months on the market and probably could have gotten a higher price if you had chosen that strategy right out of the gate.
