I will preface this post by saying that Tom Kelley with Signature Sotheby’s International Realtor is a good buddy of mine and a great Realtor. You can see him here.

Tom has been trying to sell his home in Deer Creek since October 2006. He originally listed the home for $675,000. At the time I was working with Tom at SKY Sothebys. We caravaned the home when he listed it and I thought $675,000 was a bit expensive for the home. I didn’t do a full blown valuation of the home but it just felt expensive to me since it did not have a pool. It is a lovely home that has been remodeled and in a great location and neighborhood on Palmer Ranch.

Here is a description of the property:

Exqiuisite property in Deer Creek with an updated state of the art kitchen, all stainless Kitchen Aid appliances, 2″ thick Brazilian granite. Relax in your family room by the wood burning fireplace with its warm rich “Birch” floors. Every detail has been Every detail has been thought of while completely remodeling this safe and secure home. Master bedroom is huge and an updated bath with a large bath and a large walk i n closet makes it the best value in Palmer Ranch. Home re-piped in 2005.

Here is a pricing history of Tom’s Deer Creek home:

• 10/1/2006 – $675,000
• 1/19/2007 – $639,000
• 3/5/2007 – $599,000
• 10/17/2007 – Withdrawn off the market
• 10/30/2007 – Relisted for $449,000
• 6/10/2008 – $424,900
• 10/28/2008 – $389,000
• 12/28/2008 – $379,000
• 3/10/2009 – $369,500
• 3/26/2009 – $359,000

This is a perfect example of how a seller can chase the market down. Tom is the first to admit this so I am not throwing him under the bus. Had he listed the property for $525,000 – $550,000 back in October 2006 he probably would have sold the property. Let’s assume the home could have sold for $500,000 back then. It is now listed for $359,000. Let’s say it is worth $325,000 in today’s market. Had Tom listed it more realistically in 2006 he would have netted an extra $175,000. That is an expensive lesson.

Learn from this classic mistake that so many people have made. Price your property correctly from the start. If you don’t believe your Realtor’s valuation of your property hire an appraiser.

Call Marc Rasmussen at Michael Saunders if you are thinking of selling and want a free valuation of your home 941.812.6272.