Understanding the Grieving Home Seller
Sellers all over the country are waking up to find out that their home is probably worth far less than they think it is worth. As any Realtor and they will tell you that it is very common that a seller truly believes their house is worth 10-20% more than its true value. Very few sellers will price their home from day one. They have to go through a grieving process to ultimately accept reality.
Sellers have to go through a “grieving process” to accept the true value of their home.
Stage 1 – Denial
During this stage the home seller does not believe that their home has declined that much. They are aware of the bad real estate market but didn’t think that it affected them that much. They have the “my neighborhood and home are special” mentality.
Stage 2 – Anger
This is where the seller gets angry. Usually they get angry at everyone else but themselves. In order for the seller to heal and get to the next step it is common for them express their anger. They might blame the Realtor, their banker, each other or others.
Stage 3 – Bargaining
After anger they begin to bargain. This is where the seller will try to capture as much of his loss as possible. In essence they are trying to avoid the financial loss by beating the system somehow. It is common at this stage for the seller to list their property with Realtor who gives them the highest valuation.
Stage 4 – Depression
Once they realize that they won’t somehow beat the system depression sets in. This is usually after the home has been listed for awhile with few showings and no offers. Sellers get depressed and feel hopeless.
Stage 5 – Acceptance
This is when the seller accepts reality about the value of their home. At this point they either take their property off the market or lower their price. The seller is not very happy about it but does accept reality. Usually they rationalize their loss with the idea that they will gain on the purchase of their next home.
Many Realtors have gone through this grieving process with their sellers. Some sellers go through it within days while it might take years for others. As a listing Realtor you want to find the sellers who are on stage 4 or 5. However, if they are on stage 1 you are now more prepared to walk them through to stage 5.
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