REALTORS - So many are missing the Boat

Why is it that after nearly 4years of a downward adjusting real estate market are there still so many over priced properties For Sale.

I am the broker of a boutique resort real estate brokerage in Destin Florida and frankly over the last couple of weeks, no make that months, better yet let's say over the last three years the agents in my office have been struggling with REALTORS who continue to price properties based on competing Active (that is not SOLD) properties. For some reason they think their new listing needs to be added to the glut of the over priced - that is not SOLD properties.

Why is it these "Experienced", "Seasoned", Professional" REALTORS insist on listing over priced properties - why is it that they (the professionals) continue to let the property owners set the price - why are these properties even on the market For Sale - why is it that when presented with offers that represent today's current Fair Market Value these agents continue to defend these over priced properties?

Frankly I cannot explain it - we deal with it daily and not matter how many facts and figures we present to the seller's agents they contend that their property is more special then any of the other still-not-sold properties.

So here it is my take on this whole affair - Transactional Brokerage Relationships - that's right - Florida Agents that this relationship seriously. Rather than counseling - educating & convincing their sellers to true market values they placate their sellers and take the over priced listing.

Truth be known it is because of the foreclosures and short sales that inventory is moving off the market - the lenders are taking serious losses and prices are being set by appraisers based on true market conditions. Sellers on the other hand cannot or are not willing to take the same losses yet who do they expect to pay for their mistakes?

ATTENTION - Listing agents - do your jobs - counsel & educate your prospective sellers -  if the property seller is unwilling to list at no more than 10% above fair market value - DON'T TAKE THE LISTING. The fact is you really need to be pricing your new listings at the last selling comparable price. There is no reason why properties (other than vacant land) need to be on the market more than 45 days. I am seeing fairly priced properties selling in less than a week. Remind your sellers - there is only one price for their property, its called FAIR MARKET VALUE and buyers, appraisers & lenders all support this concept and will not pay for your sellers unfortunate situation. So until you get your sellers on board with current market values there is no point in putting the property on the market.