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HOME SELLERS, REALTORS! Want To Help Turn the Real Estate Market Around? Price It Right . . . Or Quit Wasting Your Time!

By Dean Moss

Real Estate Agent with Dean's Team - Keller Williams Realty Partners Chicago IL

July 19, 2009 05:26 PM

Hey, ho kids! Hope you're enjoying your waning hours of the weekend.

Unusually temperate here in Chicago for this time of year. And we like "temperate," - we get so little of it!

Are you a Realtor long lamenting those "Good Old Days" when homes generated Offers to Purchase at practically any price - often with Multiple Bids?

Perhaps you are a consumer, trying to sell your home, waxing nostalgic over how your down-the-street neighbor sold his home in hours three years ago. And now blaming your current Realtor for not doing the same, with your home, today?

Well, folks, are you ready for a revelation? One that will change your life? Your Real Estate Career? Or the likelihood to sell your own home, and move on to the next stage of your life? Here it is -

PRICE IT RIGHT, OR QUIT WASTING YOUR TIME!

Home Sellers: Thinking about that new home you can pick up for 40% less than you could have gotten it for 3 years ago? Kiss it goodbye, and prepare to stay put for at least the next couple of years or so!

Real Estate Professionals: Got a stubborn client who will not lower his price, despite your advice and counsel? FIRE THEM! RIGHT AWAY! WITHOUT REGRET!

Today, we are still over-buried in overpriced homes-for-sale inventory. Every day I see Realtors, desiring to please their unreasonable listing clients, making $100 price changes to their clients home - just to make them happy.

C'mon, gang! Is the public - and the Real Estate Community - stupid? Think they won't catch on to what you're doing? Think again!

This week alone, we have written offers for three homes on behalf of our buyer clients at reasonable, comparables-based, "today" price levels, only to be rejected by overly-stubborn - or likely GREEDY sellers. These folks "Don't want to give it away, you know!"

Well, home sellers - don't give it away!

Cancel your listing! Pull the curtains! Lock the doors! Turn up loud your brand-new HDTV. Then, hunker down! Because your high-price reality will come back - eventually . . . just not right now, or, in most professionals' opinions, in the near future.

The end result - less too-high-priced inventory. A reduction in bloated supply! And a trend toward balance in the Real Estate Market, here in Chicago, and everywhere.

Folks, don't placate! Don't be greedy! Don't accept stubbornness! Get on board, or get off the boat! You think?

In the famous words of actor Peter Finch in the 1976 movie, "Network" - fantasy 33 years ago, close to reality now -

"I'M MAD AS HELL, AND I'M NOT GOING TO TAKE IT ANYMORE!"

Will you reduce to reality, or continue to be part of the problem?

Open the windows, and shout it out "I'M MAD AS HELL . . . !"

I CAN HEAR THEM IN CHICAGO! But I can't hear you!

DEAN & DEAN'S TEAM CHICAGO

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Anonymous

Marcia Hawken

I have passed on overpriced listings only to pick them up after the over anxious agents try to sell the listing at the "sellers" price. Naples Fl is unique as most owners do not have mortgages so they are not compelled to sell. For affluent retirees..... they have an ego thing on getting their price. I tell them Gently, that I am goof but cannot perform miracles!!!

Jul 20, 2009 06:36 AM

#45

Tatyana Sturm

Exit Realty DTC - Aurora, CO

Denver Realtor, GRI, Denver/ Aurora CO Relocation

All I can say is stay or do a short sale, since alot of people are upside down

Jul 20, 2009 06:44 AM

Anonymous

Jim Hollenback

Great post. I just went into escrow on a home that we listed 8 days ago. The seller was involved in the process from CMA through list price. We had multiple offers on this home with others in the area not getting a look. You are on the money.

Jul 20, 2009 06:51 AM

#47

Ginger Moore

Wilkinson & Associates Realty - Gastonia, NC

Yes I agree totally. Price it right, and it will move more rapidly. thanks for sharing!

Jul 20, 2009 07:08 AM

Dotti Driver

Sky Realty - Austin, TX

GRI, E-Pro Realtor

You are right on the money. It's a big waste of time and money to try to sell an overpriced home. I've had a couple of them. Both were personal friends who wanted to 'try' for a higher price. I would have loved to get them their price, but it didn't happen.

Jul 20, 2009 07:30 AM

Anonymous

Makoto Sato (RA) Coldwell Banker Pacific Properties (Hawaii)

Sometimes the seller NEEDS a certain amount of money out of the property in order to move on to their next home. Even if the seller has equity an can sell for less without doing a short sale, this need for that certain amount of cash sets a limit on what they MUST sell for. For these sellers, I tell them to hold off on selling if they can until the market swings back the other way. It could be at least another 5-7 years until the next peak... that's when they should sell.

Jul 20, 2009 07:36 AM

#50

Jean Hanley

Coldwell Banker Kivett Teeters - Hemet, CA

Specializing in Folks Who Want To Buy/Sell Homes

Dean, great post. Your market must be totally opposite of Southern California. We don't see many listings that have "Real sellers". The banks own all the real estate here. And our problem is that offers don't get accepted because the agents are encouraging their buyers to bid way way over list price, and knock everyone else out of the water.

Jul 20, 2009 08:14 AM

Anonymous

Bill Armstrong,Morris County NJ Realtor(Coldwell Banker)

To whoever wrote post #45, I can't begin to explain how annoying that situation is. The market is becoming so much more competitive for listings right now that this is starting to happen more and more. I have seen listings taken on houses that were originally listed at a price under 1 million dollars only to have a 100k price reduction 1 month later. Can someone explain how that happens? How can an agent possibly get the value of a house that wrong, and how stupid do the sellers have to be to fall for it.

Jul 20, 2009 08:30 AM

#53

Anonymous

Rebekah Littlefield

I was going to blog about this phenom this week as well! I think we as REALTORS have that responsibility to "just say no." We know the market- and if a seller is unreasonable, tell them so, and tell them I will not list your home at that price. And it is only going to work- if we all get on the same page. Eventually there will no longer be that "sold to the highest bidder" garbage that I see everyday! EVERYDAY! It is so frustrating!! It is time to get this figured out and do something about it. Thank you so much for your post!

Rebekah

Jul 20, 2009 10:54 AM

#54

Bob & Carolin Benjamin

Benjamin Realty LLC - Gold Canyon, AZ

East Phoenix Arizona Homes

Absolutely -- pricing is so important -- otherwise all one has is a sign in the yard (for a long time.)

Jul 20, 2009 11:37 AM

Andrea Curtis United Country Premier Properties Certified Military Relocation Professional

United CountryPremier Properties - Harker Heights, TX

U C INTERNATIONAL DIRECTOR OF MILITARY PROPERTIES

tooooo funny! I wont' take a listing if I can't work with the seller. That includes pricing.

Jul 20, 2009 12:56 PM

Pat Tasker

Shorewest Realtors - Germantown, WI

Your Milwaukee Metro Area Agent (WI)

Hey Dean, All I can say is DITTO!!! I have walked away from many listings this year...if they want to hire a professional, they have to take my advice on price...if they are crazy on price they need another realtors...I REFER THEM! You are right about temperate! And I am loving it...

Jul 20, 2009 01:51 PM

Anonymous

Linda Landry

Hi Dean; I was so thankful to read your post. As a new agent I was wondering why things are the way they are and if it was me causing myself not to be able to jump into the current market. There are a handful of newly listed properties in my neighborhood as well as some which have been on the market for six months. The listing price ranges from $178-248K and the properties are all within blocks of each other and the comps are coming in at around $160k. It appears some agents just list to get their name on the sign. As the listing price is adjusted the properties appear to be in distress at least in the minds eye or they would have sold! This is stagnating the market as much as the flood of REO's.

Linda Landry Exit Realty 1st Choice Tucson, AZ.

Jul 20, 2009 02:07 PM

#58

Damon Gettier

Damon Gettier & Associates, REALTORS- Roanoke Va Short Sale Expert - Roanoke, VA

Broker/Owner ABRM, GRI, CDPE

Dean, I would have to agree with you....unfortunately I think that REALTORS are a big part of the problem. If REALTORS would simply refuse to list over priced listings this problem would go away. The wife of a Broker (largest brokerage in the area) recently asked me why I was not carrying the listings that I normally carry....I told her that I was not going to list property's that would not sell....her response? Send them to me, I will put my sign in the yard! This is a huge problem in our industry.

Jul 20, 2009 05:20 PM

Anonymous

Bill Armstrong,Morris County NJ Realtor(Coldwell Banker)

Another concern about taking overpriced listings is that if that house does not sell and it sits on the market for a long time, it will hurt you when trying to get other people in that neighborhood to list with you. You will unfortunately be known as the agent that couldn't sell that particular house. People are aware of what houses are selling in their neighborhood and who is selling them. When they decide to sell, the most consideration is going to be given to the agent that is selling houses in the area, not just listing houses...

Jul 20, 2009 11:19 PM

#60

Marty Erlandson

Erlandson Realty - La Crosse, WI

Realtors are not doing their job if they just "get the listing". You're hurting the the overall market and more importantly, your're not doing your clients any service. It's so hard to help a Seller when their former Realtor told them they could get 30% above market value just to get a listing.

Jul 21, 2009 07:25 AM

R.E. Renée Hoover, Salesperson

Century 21 Geba Realty, Milford, PA; Licensed in PA & NYS - Milford, PA

Poconos, Pike, Wayne, Monroe Counties, PA; PA/NYS

Best thing about all those over-priced listings is that they help sell all the others that are priced right!

Jul 21, 2009 01:50 PM

Irene Kennedy Realtor® in Northwestern NJ

Weichert - Lopatcong, NJ

Dean,

Talk about time-wasting sellers. I was presenting my offer to sellers and their listing agent. Seller response? They took their home off the market!

Jul 30, 2009 12:42 AM

Mark Velasco

West Shores Realty - Whittier, CA

Top Producing Broker Associate

You hit the nail right on the head. Pricing is the most important factor in getting a home sold

Aug 14, 2009 05:36 PM

Monica Bourgeau

Portland, OR

Authentic Marketing for Heart-Led Agents

Excellent point, homes need to be priced correctly or it is a waste of everyone's time and energy. Sellers are better off holding on to their properties if they need to, until the market improves or until their motivation increases.

Sep 04, 2009 05:04 AM