Zillow Creates a Pricing Trap When Your Listing Isn't Selling

Here I was on Boxing Day 2021 checking my email. (Boxing Day is the day after Christmas...) I'm not writing about the dangers and issues that constantly checking your phone causes, but I certainly fall in the camp that I have a problem. (More on this another time)

I had a new email from a listing agent asking about SparkOffer. They are having an issue with their listing selling. I've seen this so so many times. Good house, needs updating, decent location, WRONG PRICE!!!

So why do I say that Zillow creates this pricing trap?

The image below says it all and this isn't even the worst I've seen.

If I could show you the entire history, the above property has actually been priced as low as $1.99M without selling. Now the seller is trapped in this awful guessing game. What is it going to take to get my house sold? What's the right price? Sorry you picked wrong again, you lose...

The trap can be further described on how sellers limit competition for their home with the wrong price. I had a call from an agent the other day on a home listed for $1M. The agent asked me if I had any buyers, the seller would take $600,000.

The seller won't reduce the price to $600,000 to start a bidding war because they do not want to make the first move. Why? They are afraid to be wrong.

The real estate market is coming closer to the stock market in regards to creating liquidity. Unfortunately the Zillow price trap of never letting go of the price changes paralyzes sellers. I repeat, they are terrified of making a mistake. In their minds a price change that doesn't create the desired sale will forever devalue their home.

My vision of SparkOffer was to create that safe place away from this trap. It's one of the hardest things I've ever tried to do in my career. Help sellers realize the best price for their home without trapping them with a digital tattoo.

To all of my fellow real estate practitioners please keep up the good fight. If I can help you in any way please let me know. I'm pretty good at right pricing :)