Recently, I had a situation where I asked myself "Is an overpriced listing better than no listing at all?". In this situation, the person selling the home was a past client so I felt uncomfortable turning the listing down because it was overpriced. We've all heard that listings are the way to go in building your business and who doesn't love the buyer leads that can result from a listing? But it is a catch twenty-two, buyer calls will probably be few and far between when the listing is overpriced in a buyers market.
Then I've heard the phrase "list to last". This makes me ask myself, can I last if I take overpriced listings? This dilemma is one that I've struggled with because having a listing inventory is important to me.
How I handled the overpriced listing, I asked them to reduce the price in 2 - 3 weeks. I will keep your fingers crossed that I can reduce the price to where I suggested in the listing presentation and I will say the same thing I say everytime..."no more overpriced listings."
Home Trek Realty - Croton on Hudson, NY
As long as you weren't the one who advised them on the price and they agreed to not jeep it high for too long I think you should take the listing.
Jan 18, 2010 10:48 AM
Century 21 New Millennium - Upper Marlboro, MD
A doctor who makes house calls.
This is always a dilemna. I think if you can convince them to listen to you and eventually lower the price I would give it a shot, especially since it is a past client.
Jan 18, 2010 10:54 AM
Dilbeck Real Estate - Oak Park, CA
Realtor - Agoura, Oak Park, Westlake CA Homes
You might also run comps. and have them sign that they got a copy. I know some agents put the price reduction right into the listing paperwork, "If there are no offers within one month, after two broker opens, and two public open houses, price will be reduced to....."
I think it also depends on whether you think it is a sellable house, and will they lower the price eventually.
Jan 18, 2010 10:55 AM
Keller Williams Bellevue - Sammamish, WA
Remind them that you are only the messenger and send them updates as the competing homes, that are properly priced get sold. Tell them, I hope you prove me wrong, but I think $X is the price, time will tell. Take them out to a competitor that is well priced and shows better, nothing like a field trip.
Jan 18, 2010 11:03 AM
Howard Hanna Real Estate Services - Beachwood, OH
Howard Hanna Real Estate Services
A good practice we find is to write the recommended asking price somewhere on the listing agreement and state when a price reduction should occur. Even if they refuse to reduce the price in two weeks, for example, you can always remind them that you put your suggestion in writing. If it's not written memory can be conveniently forgetful. Best wishes!
Jan 18, 2010 11:10 AM
iNet Real Estate Brokers, Inc. - Dallas, TX
Good for you, No more overpriced homes!! Had a listing that I turned down because the home was overpriced. The agent they listed it with couldn't sell it after a year. I think taking a listing to see what happens is not good for our reputation, and create disappointment for all parties involved. Sellers called me to see if they could list it with me. Told them again it had to be priced right. We should always keep in mind that the first two weeks is when we can generate the most buzz about the listing. Sellers who overpriced their homes loose the edge in a competitive market.
Hope you get the price reduction in the coming weeks!!
Sarah
Jan 18, 2010 11:15 AM
Coldwell Banker Residential Brokerage - ABR - SRES - Alexandria, VA
Northern Virginia Real Estate
I dislike overpriced listings and resist them. That being said, there are times when you just have to bite your tongue and make the best out of the situation. And yes, it always ends in a reduction.
Michael
Jan 18, 2010 12:31 PM
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