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STOP LYING to your clients. Fiduciary responsibility starts with pricing correctly.

Price Tag Why? Why? WHY?

Here's what I don't understand. I read post after post about agents who:

Have over priced listings and what advice on how to sell it.
Have sellers who are uncooperative about showings including being there, cleaning up, etc.
Have sellers that refuse to be realistic about the work that needs to be done on their properties.

Here's what I want to know...

WHY DO YOU CONTINUE TO TRY TO SERVICE THESE CLIENTS?

If anything, our inability as agents to shake out the unmotivated sellers is essential to our business, to our companies and to the reputation of the industry as a whole.

We have a fiduciary responsibility to our clients. Taking over-priced listings is wrong. It's wrong to allow the "perhaps I'll get them to 'come down' in price in a few weeks" mentality to guide our business.

Is it any wonder that the general populace thinks we are over paid morons? That we don't know our heads from a hole in the wall?

If we don't take on the responsibility of actually learning how to price a property effectively so it will sell (not hope it sells) then we should not be in this business, period.

Yes, it's hard telling sellers that. Yes, we'll lose some listings. Yes, we'll be wrong some of the time.

SO WHAT?!

Learn how to have the hard conversations. Learn to let waste of time listings go away. If agents stopped taking them, the general populace just might start respecting our abilities. Ok, so once in a blue moon you might be wrong about a property. That's ok. That's called living and learning and becoming more experienced and educated.

Please, if you can't be honest with your clients, then stop pretending like you are providing fiduciary services to them because you are not.

Posted by Coeur d'Alene Real Estate - Come Live the Life Style - Christina Ethridge on 07/20/2007 12:42 PM

Comments (15)

listing agent, listings, listing specialist, list price

Originally posted at: Coeur d'Alene Idaho Real Estate & Property Management: STOP LYING to your clients. Fiduciary responsibility starts with pricing correctly.

15 Comments on STOP LYING to your clients. Fiduciary responsibility starts with pricing correctly.

JUL

2007

I had that happen to me the first time aI sold my house. The agent told me the others were under priced and if I went with him, it would probable sell in a week or 2 at the most. So I did and after the first week of no call from him, I called to check and see if anyone was interested. He said no and suggested we lower the price. I fired him on the spot and called the broker to report the lies and misrepresentation. I was only 28, so I believed him, because he said he had more than 20 years experience. The broker told me he was only licenced a few months back.

Harsh but very true in some cases.

It's a tough one, that. I guess that people who take on over-priced listings in the hope of a pay day are more desperate for money than they'd care to admit. Many commission paid individuals will live up to the extent of their income and when things don't go well do anything to try to 'earn' a buck.

That said - do what you know to be right. That includes what Chuck did - expose wrongdoing the right way.

You make money when you price it right. Over priced listings are like old soldiers they don't die easily.

Chuck - that was absolutely wrong what the agent did and is a perfect example as to why the general populace pretty much doesn't believe a word out of our mouths.

Shawn - harsh yes, but needs to be said.

Alan - I think half the time the agents are afraid to lose the listing if they are honest. That's wrong and not providing fiduciary service.

Eric - funny analogy, but true.

Christina--It is so hard for some to face the truth! Good post Christina...As Always!

Amen Christina!!!! Sellers need to hear the truth and if they aren't in agreement we need to walk away and find one who is willing to listen. When I read posts talking about how difficult their seller is and how they can't sell the house because it's priced to high. It's like...why did you take the listing!!! It's NOT the sellers fault. It's the agents fault for listing it in the first place. Brutal honesty is the only way to go.

Teri - yes, it is hard - but it's absolutely up to the agents to keep the truth right there in the forefront.

Bryant - EXACTLY! I don't understand taking a seriously over priced listing. I have one right now that I hit myself on the forehead for. I've been honest since the beginning but I should never have taken it. Now, I keep it because it's the right thing to do because of the circumstances the seller is in. But, lesson lived and learned. I will not take another one again.

Christina, Never say never!!! I still end up taking one every now and then. I may have been the one who sold them the house or there could be financial issues and they aren't able to lower the price. BUT in all cases they are very much aware that we are fighting an up hill battle and they aren't more than about 5% over market. These are very rare exceptions.

JUL

2007

Bryant - Too true.

JUL

2007

You are so right with this one! I would rather lose a listing by telling the seller the truth then to have the seller be mad at me later on because I gave bad advice just to get the listing. I see many agents that are doing this just to get listing inventory hoping that something will sell. It's not right and it's hurting our reputation.

JUL

2007

Ah, yes it's so true! Bless YOU!

Other AGENTS take heed!

Renetta

JUL

2007

i always let sellers know when another agent over prices their property do you want to sell or do you want to list i am in the business of selling not listing i watch the over priced ones sit there and sit there then it expires some people call me afterwards (most don't) but i will see them out in supermarkets,restaurants ect and they usually say they should have listed with me i think it helps in the long run because alot of the sellers i lost will eventually refer clients to me because they respected my honesty and knowledge

JUL

2007

I agree 100%, we don't go to homes any more we have potential sellers meet us in our office where we can show them the market and our systems. If they elect to hire us then it's a team that we create and they agree that we'll work with the price the market dictates and lower it until we get the activity needed to get an offer.

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