Antonio & Alexia's Blog

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Would You Take an Overpriced Listing? Yeah, Me too! A Change of Heart

In my 26+ years in real estate, I thought I had seen it all... well, not exactly all, here is a new one for me. I have been very adamant about NOT taking a listing that is not priced properly. Overpriced listings are bad for everybody, for the seller, the home buyer, the appraiser, the Realtors, even the neighborhood! Why is it that sellers want yesterday's prices? haven't they read the real estate news? The market has dropped... a lot!

About 3 months ago, I was called to put a house on the market, I did my usual research, took a good look at the house, reviewed the comparable sales with the owners and help them secure a stagger, and even a carpet outfit to replace a worn out carpet in the hallway. My suggestion, based on comparable sales, and my knowledge of the neighborhood, (I live 4 blocks away from this home) was to price this home at about $650,000. The sellers were not happy at all. They wanted to list it at $775,000! what a big difference!

I looked at my research again, and could not find a justification for their price. I knew that I will never have comparable sales for the appraisal. I offered to list it at $675,000 with a proviso that we reduce the price after 3 open houses, the difference was too big for them to overcome, my standard speech for a situation like this one was given: "... I am sorry, I rather turn you down, than let you down..." I cannot work with your price. They told me, they will think about it...

Overpriced Listing in San leandro's Bay-O-Vista  The very next day, I received a beautiful plant delivered to my house with a note of thanks. They informed me that they were going to go with another Realtor, and thank me for my efforts. 3 days later, the house was listed on the MLS at $775,000. The other Realtor had open houses almost every weekend, after 30 days the price went down to $750,000, another 3 weeks later to $725,000 5 weeks later the price dropped again to $699,950 and then again to $675,000, then it went pending. Last week it closed escrow at $640,000!

Who dropped the ball in this scenario? the other Realtor did get paid. I upheld my high values and did not get paid, the other guy spent time and money, but got the job done. Then, I realized, that the seller does have the right to try and get the best possible price for his home... Even if it is an unrealistic price to begin with.! Sellers, are at a disadvantage when playing real estate, if the seller does not get the best price, he cannot go back and fix it. The buyer can realized he is overpaying and pull out of escrow before is too late, the seller cannot accept a higher offer once is in escrow.

If this would have been an isolated incident, I would have not even writen this post. But earlier this year, I had a similar situation where I was called to sell a house and my price based on comparables told me the house was worth $630,000 tops, I always look at how I will provide the right 3 comparable sales to the appraiser. I did not have them here either, I also refused to list it at their high price. The seller had another agent list it for $675,000 and it sold in ONE day! The kicker? an all cash buyer come and close escrow in 7 days... yes, this seller was lucky, because there are not too many all cash buyers ready to overpay for a house anymore.

As Realtors, we are paid for our knowledge and experience, but overpriced listings and no comparable sales are a bad and very expensive proposition. Appraisers are on the firing line, and we have lost weeks of previewing, showing houses, writing contracts and then after being in escrow for weeks, the appraisal comes and shuts down the entire transaction and sends everyone back to square one. Does anyone out there have the magic formula? I would like to know.

The Realtors In Motion       Antonio & Alexia Cardenas   

                  "The Realtors In Motion" 

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Comment balloon 66 commentsAntonio & Alexia Cardenas • July 12 2011 07:52PM

Comments

The pricing sometimes does not make any sense. My rule is that I will take the listing and try it for the seller, IF, they are motivated and will sell the house at a lesser price if need be. They must be willing to continue to make price reductions until the house sells. I do explain to them that they may actually net less doing it this way, but that is their choice.  Thanks for the good post!

Posted by Donna Quinlan, Keller Williams Real Estate Agent CareerConsultant (Keller Williams Realty) over 6 years ago

I'll take an over-priced rental listing with the caveat that I can lower the price every 2 weeks until we meet the rent I think it will rent for.

Posted by Wallace S. Gibson, CPM, LandlordWhisperer (Gibson Management Group, Ltd.) over 6 years ago

Antonio & Alexa, 

I really think this just depends.  Like you said, they did eventually sell.  On rare occassions the price homes sell at shock me, but that's the rare event.  

I am more a proponent of getting homes priced right to begin with.  However, a decision needs to be made about other factors - do you have other listings or business that needs your attention, OR maybe this is a better time to have this listing?  

It depends, there is no simple answer.

All the best, Michelle

Posted by Michelle Francis, Realtor, Buckhead Atlanta Homes for Sale & Lease (Tim Francis Realty LLC) over 6 years ago

I agree with the general rule about taking overpriced listings unless you have a safety net written into the listing agreement to fall back on. However, I am open minded to all things and I look at each transaction as a business agreement. Each agent has to run their business how they see fit and if the transaction is going to produce a profit at the end then do it.

Posted by Cory Barbee, Broker (760) 563-4022 over 6 years ago

I have one of these over priced listings. At the time of listing we were in agreement that we would bring the price down if nothing was happening. Unfortunately there price opinion is based on all the improvements that they did on the home that really don't change the value of the home. The home has been on the market for 6 months with almost no showings. 1 month after the listing and there were no showings I suggested that we lower the price (naturally, as previously agreed to.) Nope the seller now refuses to come down on the price without a offer in place. I am now sitting on a listing that is over priced and no one wants to see because of it. I have yet to convince the seller that no one is looking at it and no one wants to put a offer in on it because it is over priced. I have thrown my hands to the air. I do not know what he is thinking, but his home will not sell with the current price. Now they don't get to move to a lake house like they had wanted.

Posted by Jenny Cross (Newlun Realty) over 6 years ago

Gosh, Antonio

I feel for you. There were a few times when my honesty and principles resulted in my not taking (or losing) listings that eventually sold for even less than what I had proposed. Although the sellers told me they preferred me over the realtors they picked, they said they just couldn't list their properties for less than what I proposed.

I don't want to buy a listing either....

But if the sellers can be flexible and realistic, perhaps we can bend a little.

however, someeone on a separate blog said that having your sign up on  a for sale listing for a long time is bad advertising.



Reblogging!
Posted by Pacita Dimacali, Alameda/Contra Costa Counties CA (Alain Pinel) over 6 years ago

It's not an exact science, and despite our research, we are capable of being wrong.  As long as you're upfront with the seller, and tell them the painful truth, but that since it's not an exact science, we're going to "float a trial balloon"... (and if they're realistic about ongoing reductions as necessary)... I'd be on board.

Posted by Alan May, Helping you find your way home. (Coldwell Banker Residential) over 6 years ago

We have taken some over priced listings against our better judgment, but normally it doesn't pay.  There are always exceptions.  My take is perhaps that seller might have gotten $650,000 within 2 weeks had they listed with you at $650,000 and would have come out ahead.  The sellers that listen to what the comps prove and price their home right, we have seen in our market, have sold for full price or within 98.9% of the listed price in a very short time.

Posted by Bonnie Jean Hart, Bonnie & Clyde Team - 25 yrs Exp - Real Estate - L (Home Smart Professionals-La Quinta, Indian Wells, Palm Desert, Indio, CA) over 6 years ago

Donna, Yes, I believe there are many prices flying around in any listing. The seller's price, the Realtors, the buyer's and also the appraiser's price. Who is right? all of them at specific times!

Wallace, Yes, indeed, but it is difficult to put too many reductions at the time of the listing, it conveys a pessimism that can send the seller in another direction... like another agent.

Michelle, I agree with you, sometimes it comes down to a business decision, do I have time to carry this listing until the seller get reasonable?

Cory, yes, as a general rule, no overpriced listings should hit the market! but as my post showed, an all cash buyer gave the seller a price I never thought she could get! the seller deserves to try for that one "shot in the dark"

Jenny, I presently have 3 overpriced listings, and believe me, they cost money to carry, in time visiting the vacant houses to make sure all doors are locked, printing flyers, open houses, in this economic environment, it is a heavy price for the Realtor.

Thank you all for your visit.

Antonio

Posted by Antonio & Alexia Cardenas, "The Realtors In Motion" (Alameda County - San Leandro, CA.) over 6 years ago

Pacita, It is true that no matter how nice we are, if the sellers do not like our price, they will go somewhere else, our real estate lessons are very expensive, it is a tight rope we need to walk.

Alan, yes, we must tell the truth and the justify it with local data... and then use our best judgment and play the best card we have with the hand we have.

Bonnie, Over priced listings are extremely expensive, but no matter how well we know the comparables, sometimes the sellers do not want to hear anything different from their point of view.

Antonio

Posted by Antonio & Alexia Cardenas, "The Realtors In Motion" (Alameda County - San Leandro, CA.) over 6 years ago

I'll take the overpriced listing with the proviso that the seller is willing to drop the price if we have no offers or significant interest.  Otherwise, I use it as a marketing tool.

Posted by Bryan Robertson, Broker, Author, Speaker (Intero Real Estate) over 6 years ago

Personally, I'd rather be paid than be "right". The problem with many Realtors is they have this strong desire to always be right and won't take work if they can't get their way.

Take the listing and market the heck out of it. Worst case is you will meet other buyers and neighbors who may want to buy or sell with you.

I'm not too proud to take a listing at the price the sellers want. It's their house, their money, their life and I am just there to help facilitate their deal. If you try your best, the seller will realize the house is overpriced, and then may lower it to where it will sell. But it's not fun to see a listing that you turned down, then sell and everyone gets paid but you.

Posted by Andrew Martin (REMAX Accord) over 6 years ago

And you are surprised at all of this?  The other agent played the game is all and you should have too even though you knew you were right.  This has happened to me before and I will never let it again because at the very least you get some free advertising out of it.

Posted by Morris Massre, Real Estate Instructor Broward County Florida over 6 years ago

I have a standing rule never to list for MORE than 5% of what I believe the list price should be. Of course, I also make sure that the seller is willing to revisit the issue and adust the price accordingly after the 1st 30 days and then again in 15 days if needed, especially no showings are be scheduled or no one is calling with interest. 

Posted by Diego Marin, Real Estate Solutions (World Wide Realty) over 6 years ago

We just sold one that the seller could not get their head around to price well for the market - put it on the market a long- long - too long time ago. It came down over time and "encouragement" and we did make the sale -- but as a general rule we do not take listings that are so over priced. All the best.

Posted by Bob & Carolin Benjamin, East Phoenix Arizona Homes (Benjamin Realty LLC) over 6 years ago

This post has defanitely made me rethink taking overpriced listings. I have always agreed that it is difficult to take a listing when you are practically "doomed for failure" from the beginning. But your two examples show agents who are willing to take the risk sometimes get paid in the end. I agree with some comments above about just trying it and hoping to get other buyers out of it!

Posted by Tricia DeSouza, Selling Scottsdale Luxury (HomeSmart) over 6 years ago

I had one of these myself recently. My decision not to bother with overpriced listings came from spending two years on the Cartus relocation treadmill, where we were expected for a long time to take overpriced listings "to preserve the relationship". My hunch is, even if this has happened twice, these still are exceptions to the rule.

Easy to say, I know, especially when you're watching someone else get paid for the sale. Hindsight, though, doesn't help anyone in this business.

Posted by Jonathan Dalton (Realty ONE Group) over 6 years ago

Antonio & Alexia: It is a tough spot but never say never. There is no formula to know ahead of time but it is important to be in the game. I'd bet the successful agents you noted also have many stories that didn't work out so well.
Another question is why doesn't an overpriced property get shown?  So what if it's $75k over priced?  If it fits the buyer's criteria, Go view it anyway.  If the buyers remain grounded to their situation, likes the home and make a realistic offer, which IS IN the buyers price range, they might just get it!  

Posted by Bruce Kunz, REALTOR®, Brick & Howell NJ Homes for Sale (C21 Solid Gold Realty, Brick, NJ, 732-920-2100) over 6 years ago

When I take a listing, I spend a lot money and time to market and get it to sell. Overpriced listings cost money & produce stress so I graciously decline to take them :-)

Posted by Ann Nguyen, Lake Tahoe Truckee Homes For Sale (Dickson Realty) over 6 years ago

Thank you all for your input, I sincerely appreciate that. For what I can see, it is difficult to tell how overpriced a listing you can take, in my case I was offered to have the listing at almost 20% of my number. How long would it take to bring the seller down to reality?

Overpriced listings backfire too! This happens to be my farm area, a place where I specialize in. I know that a listing that goes up and does not sell, is absolutely an embarrassment and make other potential sellers think that you have no idea how to sell homes in the area.

In the end, we must play the game to win! Most sellers still do not understand how dramatic the price scales have gone down. But do they have the right to try and get the best possible price? Yes, they do. The agent that helps them at least try... is the one that gets paid.

Antonio

Posted by Antonio & Alexia Cardenas, "The Realtors In Motion" (Alameda County - San Leandro, CA.) over 6 years ago

I hate the overpriced listings, because you are typically doomed to failure.  I will take them, but I make sure that my seller's know exactly what the comps show and where I think it should be.  Usually they will come down, but they do wind up costing themselves money in the long run.

Posted by Tracy McPeek over 6 years ago

This is quite the conundrum! Seems it depends on how you set it up from the beginning on reduction strategy. I'd try to avoid grossly overpriced listings that the buyer would not budge on, but take ones that are close if it was me.

Posted by Jeff Coon, Branch Manager (Annie Mac Home Mortgage) over 6 years ago

I am going to stick to my guns on this one. I will not take a overpriced listing! I would rather be the second REALTOR for when they come to their senses. Advertising is to expensive for me to play it any other way! By the way I love that you and your and your husband are ballroom dancers! That is so awesome! 

Posted by Rosalie Evans, The Evans Group, Sioux Falls, SD Homes For Sale (Meritus Group Real Estate) over 6 years ago

A fully informed seller needs to be in a position to control the price. The agent must show substantial efforts to market the property at the higher price levels. If that happens, then the seller will be prepared to lower the price into a reasonable range.

Posted by Brian Madigan, LL.B., Broker (RE/MAX West Realty Inc., Brokerage (Toronto)) over 6 years ago

Antonio and Alexia, my friend Janet emailed me this morning that a listing that she turned down - because the sellers wanted to list it for $300,000 over what she thought it should list for - is now under contract! You just never know! And the exposure can be good for your business.  Maybe now that we're at the bottom - or close to it - is making the difference!

Posted by Cari Dandy, Homes for Sale - Scottsdale AZ (Russ Lyon Sotheby’s International Realty) over 6 years ago

I think this is a dilemma that we encounter all the time.  I find the situation that happened to you is fairly routine.  Another agent takes the listing and slowly but surely the price comes down to what you said it would probably sell for and it eventually sells.  I think it's best to give yourself the opportunity to sell it for the owner's at the higher price and see what happens.  If it's so close to your home it's not like its 50 miles away and you are driving to open houses 2 hours each way.  But then you don't want the reputation that you take overpriced listings that never sell either. 

Posted by Eileen Hsu, LICENSED REAL ESTATE SALESPERSON (Douglas Elliman Real Estate) over 6 years ago

I always look at the other factors involved than just the price, is the owner motivated to sell, are they open minded to a lower offer, is the property unique possibly worth the higher price.  But it's always tough to make that final decision. 

Posted by Morgan Evans, LICENSED REAL ESTATE SALESPERSON (Douglas Elliman Real Estate) over 6 years ago

It's a tough one... I think it also depends how much rapport you have with sellers, and if they will agree to lower the price, how often and for how much. See, you were right about the price, and it might have sold faster and for about 10K over what they got in the end, but sellers also got to "try and see what happens", they have a closing and a closure so to speak, without sellers remorse "we should have listed it higher, it would have sold, but now we will never know". We all have our "what if" thoughts and doubts, which might be especially painful when it's about big purchases. 

On the other hand, I see agents take overpriced listings, bring it to a point of a reasonable price, and loose them to another agent, who starts at the last agent's price and sells them. I think that hurts more...

Posted by Anna Tolstoy (Coldwell Banker Residential Brokerage) over 6 years ago

I'm in the same boat.

I have made it a general rule not to take overpriced listing but I have been finding that sellers wants to be in the decision making so I give them an option and tell them that we will have to talk again depending on the showing results.

This sets them up to take a look at what the market is doing. I also tell set them up with an account ,so that they can see how their house is doing on the market. I think showing them is better than telling them too. I use listing book and Zillow and Trulia to help them view what the market is doing.

Posted by Donna Paul, Long Island Home Specialist,All About Real Estate (Keller Williams Realty Gold Coast) over 6 years ago

Your post here and all these comments can make one rethink or re-visit their stance on over-priced listings.

Posted by Sandy Acevedo, RE/MAX Masters, Inland Empire Homes for Sale (951-290-8588) over 6 years ago

I think you should only take it if the sellers agree to lower the price if there's no activity after a while. As long as they understood that, it should be fine. The point is you are never 100% sure of the price that buyers are willing to pay. 

Posted by Michael Liew, Let me help find your dream home today (Keller Williams Realty Landmark) over 6 years ago

Hello Antonio:

 

I'm glad to see this featured as it is good fodder.

 

I think your self reflection about how to approach this in the future is exactly the right approach.  If we see ourselves as problem solvers and keen at negotiations, we should be flexible enough to find a way to work with tough minded sellers.  Your observation that the other Realtor got paid is the bottom line.

Posted by Brian Rugg, Sun City TX Real Estate - Georgetown, TX Real Est (Rugg Realty LLC Sun City Texas 512-966-3200) over 6 years ago

This is the essence of our business, we all have had those situations where we feel like hitting a wall, the sellers are frustrated and they have seen their equities drop tremendously. But that is why we are doing this type of business, our lessons are very expensive to learn. If you calculate what I lost in commissions, you will know that is not an easy pill to swallowed.

Thank you very much, ladies and gentleman, as I see it, we all have had this problem to deal with, those who find the magic formula will be the ones that survive this market. In the end, being problem solvers and putting ourselves in our clients shoes can help us understand them better.

Antonio

Posted by Antonio & Alexia Cardenas, "The Realtors In Motion" (Alameda County - San Leandro, CA.) over 6 years ago

Antonio, I understand your dilemma. Sometimes if a house isn't exactly "cookie cutter" it may be harder to find good comparables to determine the listing price range. If the homes were in a regular tract neighborhood that were pretty much all alike AND the price the sellers wanted was more than 15% higher than the comps...well, I'd be hesitant myself to take the listing, especially if it didn't have distinguishing features such as a view, pool, significantly larger lot or something that may increase value!

At the end of the day, a home's value is whatever a buyer is willing to pay...and this especially applies to cash buyers, who don't have to rely on an appraiser's opinion. Sorry you lost out on these two deals. :(

Leilani

Posted by Bob Souza (925) 513-3400 & Leilani Souza (916) 408-5500 Souza Realty - Real Estate Broker in Placer County, California, Homes & Land, Real Estate Investments and Rentals (Souza Realty - Roseville, Rocklin, Granite Bay, Loomis, Penryn, Newcastle, Lincoln, Auburn, Meadow Vista (Placer County, CA)) over 6 years ago

Antonio, I respect you for not taking blatantly over priced listings.  I agree that it doesn't typically pay, but reading your scenarios does make me rethink our strategy.  I think the key is getting them to reduce and quickly.  I hate that this happened to you.  Ugh!

Posted by Elizabeth Cooper-Golden, Huntsville AL MLS (Huntsville Alabama Real Estate, (@ Homes Realty Group)) over 6 years ago

Antonio - I hear you and feel your pain.  Overpricing HURTS the seller - but they don't know that and often you can't convince them of that.  I have lost several listings because the pricing was off the walls.  I'm also missing out on the buyer traffic and a commission.  Most of the time the agent is about to muscle down the price over time...and I'm the one with an empty wallet.

Posted by Ruthmarie Hicks (Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605) over 6 years ago

Antonio, I'm listing a home tomorrow that I feel is overpriced.  But if the sellers want to start at that price, let them.  I've already spoken with them in detail about the timeline and the reasons for the down market.  But I know they want to sell and we have to see if their price will work.

Posted by Kay Van Kampen, Realtor®, Springfield Mo Real Estate (RE/MAX Broker, RE/MAX Solutions) over 6 years ago

I have done it both ways... it depends upon several other factors for me, such as number of similar properties on the market, how over-priced they are, their willingness to look a the comps both for solds and listing comps, what price range the property is in because over a certain price range tend to sit on the market here even if they are priced right. 

If the property is one that I know will get a lot of attention, calls, and showings, then being somewhat overpriced tends to work itself out. 

If the property is not one that usually moves very well... then we need to get it priced right up front. 

On the ones that I take that priced above the indicated price range, I have price reductions built into the listing contract.

Posted by Judi K Barrett, BA, Integrity Real Estate Services -IDABEL OK (Judi Barrett~Integrity Real Estate Services~Idabel, Oklahoma) over 6 years ago

Antonio & Alexia,

I feel the same way unless you can get the seller to agree to price reductions basically walking to water.

Posted by Tom Meyer (Exit Advantage Realty) over 6 years ago

I have had clients that I will sit down with and have them help me do a market analysis, this helps them realize how homes are priced, and then I will show them days on market relative to original list price and how far below market price the over priced listings end up getting, the final thing I do is have them initial the CMA and tell them, if we get an offer near this price you had better believe it is a good offer.

But for the past year and a half I have worked primarly with buyers, on the occasion I decide to take on a listing rather than refer it I will go through this, it is well worth it to my clients and myself, and I guarantee no other agent will be doing it.

Posted by John Marshall - FORE!, Specializing in Golf Course Properties (The K Company Realty) over 6 years ago

Antonio and Alexia if you find the magic solution, please keep me informed.  I am too familiar with this issue.

Posted by Christine Donovan, Broker/Attorney 714-319-9751 DRE01267479 - Costa M (Donovan Blatt Realty) over 6 years ago

Antonio & Alexia, this is an eternal dillemma in our business. Some people get lucky and sell an overpriced listing, or have Sellers who are motivated and will come down. I agree with the concensus that it depends that the Sellers are motivated and agree to come down to the recommended price, which could be lower by the time they get there.

Sharon

PS I love #40's idea of doing a market analysis together!

Posted by Sharon Alters, Realtor - Homes for Sale Fleming Island FL (Coldwell Banker Vanguard Realty - 904-673-2308) over 6 years ago

Antonio - I was talking about this very subject to another agent today.  He has a listing, beautiful home however too many improvement and way overpriced.  Although the agent talked with the owners about pricing, the reason he took the listing was because of fear loosing the listing to another agent.  All this agent did put a sign in the yard and put it into the MLS and this agent said that is all he is going to do. Total time spent about three hours - Wow! To me a disservice to his seller and to me, this is totally against my philosophy.  I have walked away from listing appointments only to find out another agent took the listing and it times the very same listing expired or it sold for less or just about the list price.  

A price reduction into the listing agreement is a must if I would price it within a certain range over my suggested list price and if seller does not agree, I walk.  

Posted by Petra Norris, Realtor, Lakeland FL Homes for Sale (CDV TransAtlantic, Inc.) over 6 years ago

If you take an overpriced listing, with the understanding that you will lower the price in 2 or 3 weeks, that's not so bad. You really have to understand the seller. They may be more flexible than they appear to be.

Posted by Donald Reich (Prudential Centennial) over 6 years ago

Similar story. I rejected a listing that I comped out at $470,000. They listed with a competitor at $695,000. Then $599,000. Dropped to $550,000 within 60 days. Then dropped to $499,000 and finally settled for $450,000 by 6 months. I should have taken it I guess. 

Posted by Erica Ramus, MRE, Schuylkill County PA Real Estate (Erica Ramus - Ramus Realty Group - Pottsville, PA ) over 6 years ago
This is an interesting perspective. I have had a listing that I thought was priced "ambitiously" and it sat on the market for 3 weeks with no activity and then we had 1 showing which led to a full price offer. Sometimes, we never know the outcome so I would rather take the listing and work with it.
Posted by Dr. Stacey-Ann Baugh, A doctor who makes house calls. (Century 21 New Millennium) over 6 years ago

Many of my short sale listings were previously overpriced with other Realtors.

Posted by Dave Halpern, Louisville Short Sale Expert (Keller Williams Realty Louisville East (502) 664-7827) over 6 years ago
What a neat dance photo at the top of the post But what s the opportunity cost if all this time at unrealistic prices
Posted by Anonymous over 6 years ago

Nope! I will not take an overpriced listing. I will not do it! :-)

Posted by Sarasota & Manatee Counties FL, QuickFreeMLS.com - Listings In Paradise (SaraMana Properties - QuickFreeMLS.com) over 6 years ago

I have taken overpriced listings, but letting the clients know that in my opinion our listing price was extremely high and that if they were really planning on selling that more than likely we would have to have a price reduction at various times in the process....sometimes it works and sometime I have had to cancel the listing.

Posted by Ronald DiLalla, No. Orange Cty Real Estate (Century 21 Discovery DRE 01813824) over 6 years ago

I have lost several listings because I refused to take over-priced listings. This last year, I have started writing in the listing agreement automatic reductions to price $ after 30 days on market, auto reduction to price $ after 60 days on market, etc. At least you don't have to call to discuss later.

Posted by Lori Cain, Midtown Tulsa Real Estate Top Producer (eXp Realty) over 6 years ago

It all comes down to motivation of the seller.  If they want to sell or need to sell, they will eventually reduce the price.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 6 years ago

I willl generally get them to agree to a repricing strategy to get it to where it needs to be in order to sell.

Posted by Bernadine Hunter, SFR, ACRE, "Finding Solution to Your Real Estate Needs" (Keller Williams Greater Columbus Realty) over 6 years ago

I've sort of reversed course on this or at least my ears are now open to another counter point.  Yes, the seller does have the right to price his or her property wherever they want, but I have a right to reserve my efforts for people who are more likely to sell their home. 

But, overpriced listings DO sell. What to do?  I think it just depends.  And, if your market is declining price wise you may want to bend your rule a bit in order to be competitive and sensitive to the desires of sellers.  

Outline all the issues to them up front with overpricing, let them pick a price, if the motivation to sell is truly there you may want to go ahead and take that listing.

Posted by Tni LeBlanc, JD, MA, REALTOR, CalBRE # 01871795 (Mint Properties, Tni LeBlanc (805) 878-9879) over 6 years ago

The whole point in real estate is to get the listing. It's not your house. You never really know what a buyer will do, either. When you decide that you do, you're in trouble. I have had listings that could sit on the market at an inflated price because they brought me a ton of other listings and other buyers -- kept the seller happy and I was happy -- and some of those inflated listings eventually sold at their inflated price. All you can do is advise the seller of price. If the seller wants to overprice, that's the seller's option. Your job is to put it on the market -- if you don't, some other agent will. And, like you learned, that agent will get paid and you won't.

Posted by Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents, Put 40 years of experience to work for you (Lyon Real Estate) over 6 years ago

Antonio & Alexia, Congrats on the Feature. Well deserved.  I do tend to agree with you on not taking over-priced listings.  I recently canceled a listing because the seller refused to lower the price.  It's a lot of work marketing a listing week over week. At the end of the day we do not meet the sellers expectations ... and ultimately let them down.  For me, it is a matter of not wanting to take on all the negative energy. 

Posted by Kathleen Daniels, San Jose Homes for Sale - Probate Broker (KD Realty - 408.972.1822) over 6 years ago

I believe we all have had those listings that seems to go on forever and refuse to sell. When you ad up your time servicing the listing, the advertising dollars, the showings, even the hand holding of the sellers, you realize just how much money you lose by not having the proper price on place from the beginning.

My experience makes me think that no matter what we do, the ultimate goal is not just to take a listing, is to find a way that within a reasonable amount of time you get paid for your efforts, there will always be several prices in any listing: The Seller's price, the listing agent's price, the Buyers perception of price, and the appraisal value. Whether we like it or not, we have to face each one of these price intervals at different times during a transaction.  From now on. I shall keep that in mind.

Thank you all for your visit and your valuable comments.

Antonio

PS: Kathleen, this one counts as one of the 5 post I promised.

Posted by Antonio & Alexia Cardenas, "The Realtors In Motion" (Alameda County - San Leandro, CA.) over 6 years ago

Typically taking an over-priced listing backfires on the agent, so I just don't do it.

Posted by Linda Metallo DiBenardo (Re/max Impact, Lockport, Illinois) over 6 years ago

This is a hard one and I in the past did not take over priced listings - but in today's market you just never know what is going to happen. It is no different that writing an offer for a buyer at a ridicuoulsy low price and have the seller come down and the buyer go up. We can only advise and in the end it is our clients decisions.

Posted by Linda Urbick, San Ramon, CA Homes for Sale - 925.415.3046 (Keller Williams Realty) over 6 years ago

Sometimes you know that the situation is just wrong. Not only is the seller insisting on an unrealistically high price but there are other warning signals going off. Pass on that listing. Otherwise, take the overpriced listing is the seller's motivation to sell is right. You know someone will. There will be price reductions and the property will eventually sell for a market correct price. If the seller's motivation is not what it needs to be...pass. When they do not get their dream price, they will simply pull the property off the market.

Posted by John Juarez, ePRO, SRES, GRI, PMN (The Medford Real Estate Team) over 6 years ago

Antonio and Alexa:

Being right doesn't always mean you get paid.  I have passed on overpriced listings and seen them sell with another agent (around the price I told them) and I have seen some of those overpriced listings go through multiple agents and still not sell.  I guess it depends on the seller's motivation and personality like John mentioned.  If it is the right person or right house and they will work with you try it.

Posted by Jennifer Manchester, GRI, ePRO, ASP - Broker/Home Stager (Suburban Properties of Charlotte, LLC ) over 6 years ago

If you want to change a good policy just because an exception occurred I'm sure you can find lots of other policies to change too.

Get real, a grossly overpriced listing is not a saleable listing, and I won't take them. I have a couple of cases like yours and I sent the sellers a "get well" card saying I was sorry they had to go through all the extra inconvenience they had to suffer through because of the circumstances at the time. But now is a time to rejoice that they can now get on with their future plans and if there is anything I can do to help let me know and I will continue to give you my best and honest advice. Actually 2 out of the 3 bought their new homes through me.

I do a few exceptions but the seller must be truly motivated which means must sell, and there is a built in price reduction schedule authorized in the listing. I advise them they probably won't get as good as price as coming on the market as my suggested price but they will find out if that wished for buyer who will pay more is out there. Also the listing is long term. If all three conditions are not present, I walk.

Posted by Brian Park, Broker over 6 years ago

Brian, YOU are the one that needs to "get real" just read the post again, the point here is that yes, you can work with an overpriced listing, it will take you longer, but it is doable. My example clearly shows how the other agent did it. It is your choice to take it or not. Read the post again, so you get the idea.

Antonio

Posted by Antonio & Alexia Cardenas, "The Realtors In Motion" (Alameda County - San Leandro, CA.) over 6 years ago

We have all had situations like your example.  It does not mean that we should price high and reduce constantly.  It causes you problems with the seller.

Posted by Tim Lorenz, 949 874-2247 (TIM LORENZ - Elite Home Sales Team) over 6 years ago

Hi Antonio.  Loved reading your post along with the comments following.  Is it not best to remember that these are people we are dealing with and to make a judgment call on a case by case basis? 

Posted by Carol-Ann Palmieri, "Cal" the Real Estate Gal (RE/MAX Executive Realty, Al and Cal Realty Group) over 6 years ago
Trixie, it could also be that the body of your post is set to a shorter ltnegh that what you think it is. Check with your blog designer. If it is, it'll stack your pictures after publishing. The reason it doesn't look that way when you preview it is because the ltnegh of the body is tied to the publishing space, not the creating space. Make sense?Another thing, when you're putting your pictures into your post, after you've loaded one, be sure your cursor is BELOW that picture BEFORE you upload the next. I've found that sometimes I have to enter a line of text between the pictures, and then before I post, remove that text. Don't know why that makes a difference, but it's fixed some picture posting problems for me.Sounds like I may need to try out that Live Writer myself.Hope this helps.
Posted by Venkatesh over 5 years ago

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