Wishful Pricing: When a seller thinks their home is worth more than it is, causing a listing/asking price to be much higher than market value.
This usually comes from misleading data sources like online valuation websites or agents that do not know what that are doing... or salespeople that actually DO know what that are doing, which is taking advantage of a wishful seller to gain the listing with a flattering valuation.
The uneducated agent that does not know better will agree that the wishful price is a good list price becasue they really do not know or actively work that market segment. And that is someone you don't want to work with!
The other (unethical and predatory) agent will also say "YES!" to a high price (or to a higher price than the ethical/true price agent) so that you list with them. "Yes! I can sell it for that! I can sell it for more than all the other agents that you met with including the agent that specializes in your neighborhood (that did not agree with wishful pricing)!"
This is when a wishful seller takes the bait. This unethical agent said a high price (knowing its high) to gain the listing. They know that it won't sell at that price. They hope for a few low-ball offers to convince the seller to reduce. Or if it sits on the market with no real showings or offers, they will start pushing for a price reduction. If not, they let it sit and get leads from the sign in your yard to sell other homes (priced appropriately).
I have a list of those failed attempts by other sellers and their misleading agents at wishful pricing (canceled/expired listings). If you want to see some examples click here.
Don't fall for wishful pricing! It will cost you time and money! It will cost you more in the end than you think!
