I’m not quite sure what to make of Coldwell Bankers’ “National 10-Day Sales Event” which urges its clients to lower the price of their homes by 10 percent for ten days. In return the sellers get special promotions for the listings, through radio, print and web advertising.
“Our research and discussions with our brokers and sales associates shows that in many markets sellers remain reluctant to list their homes at the proper prices necessary to attract buyers,” says Coldwell’s CEO Jim Gillespie.
In fact, in a survey of more than three thousand Coldwell Banker professionals, more than half said listing prices in their markets were above the levels that would make them “attract qualified buyers.” 77 percent of professionals say the majority of sellers “have unrealistic expectations regarding the initial listing price for their homes.”
This promotion is troubling on a number of levels. First and foremost, I still don’t understand how home sellers can still be so clueless?? The housing market today mirrors the bloody rubber corpses I’m beginning to see sprout up on my neighbors’ front lawns. And yet some sellers are apparently still waiting for the Easter bunny to ring the doorbell with an offer to buy.
But on the other hand, ten percent less is a lot to ask when I’m guessing most folks have already dropped prices at least somewhat in their initial listings. Do the plea and the ad campaign behind it only add to the lack of confidence by seeming just a little too desperate?
Then of course there’s the issue that many folks who took a lot of equity out of their homes during the housing boom, may not have the ability to lower the price by ten percent without ending up under water on the mortgage. I think the offer is a tough sell, for buyers and sellers alike.
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