In July of 2008, my buyer’s agent, Natalie Cerpa and I went on a listing appointment to a gated 1930’s Spanish home in Highland Park. The home was 4 bedrooms, 4 baths, less than 2,800 square feet on an acre and a half (not all level).  No pool.

Although the home had much to offer, the location was not what a buyer would be hoping to find in the million plus price range.  After much consideration, Natalie and I concurred that the home should be listed for just under $1.2m.  We felt that with our marketing plan we could sell the home quickly near or (with multiple offers) over asking price. 

The owners were appalled and in August (2008) listed their home with another real estate agent for $1,899,000.  After overexposing their home on the market for 6 months at this ridiculous price., the sellers chased the market down and listed their home with yet another agent for $1,175,000. After three months the sellers again switched Realtors© but kept the same listing price for another two months before reducing the home to $998,700.  In December of 2009, it sold for $820,000.

My point?  When homes sellers interview Realtors©, they should carefully review the comparables.  According to MLS (multiple listing service) records there have been four, $1,000,000+ Highland Park home sales in the past decade.  The highest sold for $1,175,000 in 2006 (which was a stronger market than my 2008 meeting).  What would lead anyone to believe that a home buyer would pay nearly $2,000,000 for a Highland Park home in a so-so neighborhood? 

It was very costly for this seller to chase the market. I believe that if the seller’s would have listed with me in July of 2008 for my recommended list price they would have put nearly $400,000 more in their pocket.  And it would not have taken them well over a year to sell their home.