What Causes Seller’s Remorse?

I was watching an episode of Million Dollar Listing New York, last night, which perfectly illustrated what seller’s remorse is.

One of the top agents in the city agreed to take on a listing that was over priced, compared to recent sales in the neighborhood. On top of this, it was a new development, so the seller insisted that he would only consider full price offers with no negotiating for a lower price. The list price was something like 2 million dollars.

The agent reluctantly agreed and pulled out all the stops to promote and market this listing. He created a lot of excitement and momentum and most of all a sense of urgency among multiple buyers. He got them to bid against each other and got his full price offer. This listing should have sat on the market for months, but the agent was good, and lucky and pulled off a real estate miracle.

Obviously, the agent was thrilled with this minor miracle and that he just broke all price per square foot records in the neighborhood. The seller, on the other hand, was disappointed!

Because it only took a week to get the offer, the seller felt they must have underpriced the listing and wanted to reject the offer. This scenario happens every day in every price range. The reason is that in an industry where everyone overprices their homes and most homes sit on the market for months, if not years, without an offer, sellers are always shocked if a home sells fast and they naturally assume that they under priced their home. Just the opposite is true. They priced their home correctly, while the other homes, that stayed on the market for months, were priced incorrectly.

So, the moral of the story is, if you price your home correctly–at market value–it will almost always sell in a matter of days or weeks, almost guaranteed. Market value means this is the price buyers have shown they are willing to pay at any given time. Pricing your home correctly is never a mistake, but you will think it is and you will have seller’s remorse, if you aren’t prepared for this ahead of time.

The only way to prevent seller’s remorse is to do what 90-percent of all sellers do–overprice your home. Then you won’t have to worry about it selling too soon. It’s always your choice. You aren’t required to listen to your Realtor’s advice, which if taken, always leads to seller’s remorse.

Contact me today if you would like to know what your home is worth and if you want to avoid seller’s remorse.