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Real estate Interventions Needed! Why Do Agents Enable Sellers?

I'm a survivor in real estate long enough to make a lot of observations. Those observations are also often points to ponder. In real estate we are in a commission only. That means, unless a home sells, there is no money to be made. It is a fact also that if a home does not sell there is a cost. Not only do we not make money, we lose more business as word of our inabilities travels faster than the speed of light! From neighborhood to neighborhood, and our competitors start to track our numbers to use on their next listing presentation! So there are home sales, listings, and there are also a lot of expired and withdrawn listings in real estate.
I had a thought the other day on why one agent that is a full time real estate professional will walk away from taking a listing if the listing is not on their terms. Price, paint, and appearance must be in order, and the product has to be a desirable one that there is sure to be a buyer for it somewhere! If the seller doens not agree, "ADIOS!" So it really makes me stop and wonder why an agent will list a dirty home, or take a listing that is way overpriced...even if it never sells! It just doesn't make sense at all! If an agent asks a home seller to paint, replace carpets, kennel the vicious dogs, and price the home to market...if the seller refuses, why list them? "Next.." is a no brainer!
The problem lies in an agent listing a home of a seller that refuses to do anything the agent requests. The seller even refuses to pay the requested commission! The agent still takes it! Is the agent in need of a listing fix? Is the word "No!" in the agent's vocabulary? It must be a low self esteem sort of thing! When an agent takes a listing that will never sell is it because they in an office race to get more listing units on a chalk blackboard even if the listing never sells? Where are we going with this? Are they enabling seller's that will never sell because of a really bad attitude? If this some sort of perverse penance? Does the agent have serious issues when they list a home with a totally uncooperative seller? Does their broker need to intervene and actually train an agent not to bother to take a listing if it is not on their terms? I would tell an agent to not bother, or fire the seller!
The problem does not always lie with the seller. We must ask, "Is the agent more interested in listing homes than selling them?" If so...it doesn't make any sense at all! I've been licensed since 1979, since 92 in Atlanta, and if I do not think there is any chance of a sale, I do not take the listing. Why bother? It is that simple. On those listings we do not take, many times I see the home languish on the market for quite a long time. Agent after agent, the home expires once, then expires again, and then withdrawn. Then the process starts all over again. So when we take a listing with an uncooperative seller, it doesn't get better. If experience shows us that, why bother? It will only get worse! When a contract comes in they will not accept it or work with you on it. When the Inspection counter is placed in front of them that shows their home needs repairs they will look you straight in the eye and say "Who's going to pay for this?" If the buyer needs closing costs an unappreciative seller will say "Pay for it! I'm already paying you a fortune!" Why would this happen? Because these agents have enabled the seller to believe this is how they can treat you. When I look at it this way, I do not feel sorry for the agents. I often think that a lot of the messes agents get in are of their own doing!

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Posted by Jim Crawford ~ Atlanta Real Estate-ABR E-PRO on 05/26/2007 10:25 PM

Comments (15)

listing agents, uncooperative home sellers, expired listings, withdrawn listings, pricing a home to sell, prepare a home for sale, salemanship

Originally posted at: Atlanta Real Estate | Atlanta Housing News for Real Estate: Real estate Interventions Needed! Why Do Agents Enable Sellers?

15 Comments on Real estate Interventions Needed! Why Do Agents Enable Sellers?

MAY

2007

Listings are key to generating more business, right? Isn't it worth taking the listing if you can pick up a couple of customers and sell them something else? The time, energy and money spent marketing these listings will surely generate leads for future sales.

Mellissa thank you for your comments! And if you do not generate more leads? Why bother? A filthy listing that is overpriced ..how does that help your reputation? Other agents will pass up showing your next set of listings. They will say, you only list dirty homes, you have no control over your sellers, and your listings are way overpriced! So again I ask..." If the listing does not generate anything? Why would you bother?"

An unreasonable seller in a buyers market just doesn't make sense! Some agent have a one track mind that listings are where it is all at. They have been brain washed into believing "Those that list make the money!" I totally disagree, That is why there is a term called "A buyer market!"

I completely agree with you. However, I'm new and I feel I can't turn down anything right now! I'm hoping that eventually when I have more experience I will be in a position to choose my own listings!

Unless you deal only with the unreasonable, you'll have variety in your listing inventory and won't earn such a reputation. My point is that it's not always unreasonable to take an overpriced listing, knowing that it may not sell. However, desperation should not be the motivator. As for the dirty houses, overpricing is a killer and taking those listings could be pointless.

I think some agents will take any listing just because they "need" the money, not realizing that it may end up costing them money in the end. I think this will always be a challenge.

New photo! Nice! I will read the blog later.

MAY

2007

Jim, I totally agree! I just terminated a listing on a beautiful home because of unreasonable sellers. The house was pretty, but there was no real grass in the yard! This was in an exclusive subdivision where everyone else had pretty landscaping and theirs really stood out for not having any. They had the flower beds and a tree but didn't put them to use. They said, "Do you REALLY think that's a problem?" They also didn't disclose to me that they had a water problem last summer...this house is in a rural exclusive area that has well water and the well went dry! I point blank asked them twice while at the listing appointment about the well and they told me they had a good well. I only found out because I had another listing appointment down the street from them and these clients told me! No where on the disclosure was there anything written about the well running dry. They also refused to change the disclosure and they told me that the subdivision had offered allowances to the homeowners to have their own well and they told me that half the homeowners did take advantage of that program, but never would say that they took them up on the offer and had theirs repaired.

Also, the wife didn't want to pay me a full commission and said so many times during the 3 months the house was listed (they signed 6 months, but that's a whole other story!) even though they signed the contract for a full commission which was fully explained to them.

These people were trouble from day one and I should have been smart enough to pick up my bags and hoof it on out of there!

I totally agree with not taking a listing just for listing's sake!

Jim - great post - we turn down more listings than we take for all the reasons you said - and then throw in lack of "true motivation" on top - It doesn't take a rocket scientist to figure out that listings COST you money. Why would I throw MY money away on undeserving sellers - I'd rather spend my money taking my best advocates to dinner and building a deeper referral source!!!

I think "listings bring buyers" is a myth in this market - Our experience is sign calls are way down and sellers want you to do more (translate spend more money) however our personal referrals are way up - and nothing we've found is more cost effective than that.

That's my $.02 - for what it's worth :-) You probably were only looking for $.01 worth - you struck a nerve!

Jim, I turn down listings when it is overpriced or the "need' to get so much to move. If the market won't justify the price, I don't want to waste my time and money. Some agents forget time is money ! Keep up the good work.

Hi Jim! Nice new picture!!

So far I have only turned down one new listing but I didn't tell them why I wasn't listing it. I merely referred them to a new agent that needed a listing to get started with. The house was a filth bucket that was the worst I had ever seen. I thought I would throw up from the smell inside! The new agent was thrilled to get this listing( I still am amazed that she would take it) and ran with it. She found a buyer and ended up with a full commission. It was sold in about 2 months and I got a referral fee. So maybe instead of just turning them down discuss referring them to a "specialist" for their area. Make a little $$$ without the headache.

Mellissa It is refusing the pointless ones that I am talking about. All others are reasonable selections.

Ana - You are right. Some of life we must expereince to make sense of things. Smart people can also learn from the mistakes of others. We are in a buyers market right now, and most agents still believe it will be business as usual in a few months. It won't be. W ehave to watch not only our marketing dollars, but time also.

Linda Taking a listing for a listing sake isn't too smart.

Cyndee You nailed it! Motivation is the key!

Missy - Right you are time is money!

Lizette Referring out can be very profitable,a nd also refer out the stress!

I have a lot to learn about taking listings but the critical part for me is that it must be priced in the range that I specify. I do extensive research on the valuation of a property, then I specify a range in which the property will likely sell. I try to stress that this range is not the "I think it might sell in this range" range -- I specify the range in which it WILL sell. Is this gutsy? Yes. Have I missed it? Not in over 2.5 years (I sold for 5 years in another lifetime, but I'm not counting those years from 77-82) , and I feel blessed that, so far, all of my listings have sold within the original contract period.

Now, with that said, I'm sure that record will be broken, but I'm going to work really hard to make sure it is not. The adage, "you have to list to last", should be followed up with " You have to take listings that SELL to last".

This is not bragging. This is me knocking on wood and saying, "Thank you, God!" that I've had a string of luck; i.e. Luck is when preparedness and opportunity meet.

So Jim, your and several other's points are well taken. This business is not rocket science. I wish I could say that it was. However, we must do our homework in advising clients how to properly "prep" a home to sell, and how to properly "price" it for today's market, to sell in a reasonable period of time.

Another old adage -- "Listings only get better with time", is probably true, IF (and that is a big IF) you have a motivated seller. So the key is, if you're tempted to go ahead and take an overpriced listing, you absolutely must have a motivated seller. If they are motivated, they will continue to primp and adjust price until the property is sold. That kind of listing I would probably take, however, I usually talk them into listing at my absolute "best case" price. That way, we start the testing of the market phase close enough to the market that we can get some showings and provide the seller with a little bit of feedback.

Question -- do other agents here work the "Agent Tour" time for feedback and assistance in getting seller's to be realistic? I have found this to be one of the best helps to get sellers expectations in line with the market.

Andrew! Wow! Where do I begin? You hit the nail on the head several times! You are right! "This business is not rocket science!"

Prep a home to sell
Price it for Today's Market.
I"If tempted...you absolutely must have a motivated seller!"

Yes Other agents can Provide Information to informand motivate your sellers!

A great post that has many worthwhile points for agents of all stripes to consider. Part of our fiduciary is not to cheat the principle. Either not being honest about the product and it's likelihood of being sold, OR pretending that what you said was really not all that important in and of itself, is also dishonest. If you do not walk away, then you are also not true to yourself either. I totally agree with the post and hopefully the right ears will hear it. The preacher and the choir have both spoken, :-)

Well it is interesting all the insights that were aired!

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Jim Crawford ~ Atlanta Real Estate-ABR E-PRO

Atlanta, GA

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