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I'm Not Buying Your House - I'm Your Listing Agent

By
Real Estate Agent with Keller Williams Capital Properties

Some days I feel like banging my head against the wall.

I heard a friend say recently that she didn't understand why her neighbor's house had not sold. After all, they went with the Realtor who gave them the highest price.  Said just like that.  Never once crossed  her mind how inconsistent with success that was and she had no understanding whatsoever that her neighbor was likely "bought" with a too high price that the agent knew he couldn't bring in.

Thus the head banging.  How do I counter the assumption that people have that we as agents are going to get you more than your house is worth?  The market dynamics are what they are and the true competence any seller should be seeking is to find someone who understands that market with a keen sense of buyer urgency, has a marketing plan that includes many creative ways to get your house in front of buyers and a good grasp of  the current financial climate. 

You are not selling your house to the highest bidding real estate agent.  I'm going to repeat that.  You are not in a bidding war with real estate agents.

But you are in a war with other sellers to compete for the same pool of buyers.  And that is the critical role of a really good listing agent:  to bring the market to you.  The most market possible so a probable buyer will surface and buy your house. That buyer is going to set the final price for your house if you decide to take it.  Not the listing agent!!

I experienced this recently with sellers who interviewed me to sell their home but wouldn't tell me what they thought it was worth or what they were considering selling it for.  They said they really liked me and wanted to go with me "based on the price I gave them."

That head banging thing again...

No matter how many times I said it was like playing Pin the Tail on the Donkey to find the right price at which they'd hire me, they never saw the error of their ways.  Or maybe they did and just thought that if they kept up the search they'd find someone who would do a CMA and come up with the elusive price they were looking for.

Seriously, how can anyone expect a professional to work like this?  And how easy do you think it would have been for me to say  because I have such a good marketing plan, I'm sure I'll be able to get you $1.2M for your home, when I knew it would likely sell for no more than $1M.   They would have signed an exclusive listing agreement with me so fast, but before the ink was dry we'd be talking about how the market wasn't responding and they'd have to think about a price reduction to get sold.

There was an agent in this particular market who very likely would do exactly what they thought they wanted.   They have no way to connect the dots and know the postcard they received from the agent touting her success at selling another home in their neighborhood, did so with 485 days on market and a 20% reduction from the original price to the sold price.  That was a painful process for the seller and one that could have been avoided if they had listened and chosen the agent who could help them:

  • 1) Get the home in the best condition and get excellent photography in place
  • 2) Understand the market pricing and help them price with their motivation and needs in mind but with the fundamental reality that the buyers would set the final pricing
  • 3) Market the house with more than just the local MLS in mind.  The house needs to be marketed all over the Internet so there is widespread coverage that brings in the buyers who are relocating as well as any local buyers.
  • 4) Help them get out of their own way so they can successfully sell their home and get on with the next phase of their lives

I fully understand the lure of that high price someone gives you.  It's like the siren song that reels you into the rocks...  As a seller you need to remember that your focus is on hiring someone who can back up the recommended pricing and get your house sold.  Just because you can throw a rock and find someone who will tell you what you want to hear is not reason enough to hire them for one of the most important transactions in your life.

Posted by

If you are looking to buy or sell a home here or in one of the other lovely surrounding Bethesda real estate communities, please start your search by calling me, a Bethesda Realtor. 

Search here for all Bethesda homes for sale

 

Serving the Greater Bethesda real estate, Chevy Chase, Potomac, Kensington area communities and other surrounding areas.

I'm available to help you!

Josette Skilling

Associate Broker & Co-Founder

Urban Tree Properties, Keller Williams Capital Properties
7801 Woodmont Avenue
Bethesda, MD 20814
Cell: 301-385-9213
Office: 202-780-7570

Email: josette@urbantreeproperties.com
Urban Tree Properties

Copyright © 2015 by Josette Skilling

Bethesda Real Estate

Comments (37)

Stephanie Arnett
Mississippi Magnolia - Starkville, MS
Forbes | Inman | BossBabe | Newsweek | Tom Ferry

People just don't understand!!

Jun 24, 2010 12:54 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

The teacher of my appraisal class says "every owner thinks they have the Hope Diamond."

Perhaps they're looking for the agent that prices it like a diamond??

Jun 24, 2010 01:22 PM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Quote the Bible NAR Code of Ethics if you get a sense someone's out to buy the listing:

• Standard of Practice 1-3

Realtors®, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.

Jun 24, 2010 02:05 PM
Curt Hess
ExecuHome Realty - Annapolis, MD
Luxury Home Consultant, Team Leader & CEO

The perils of the listing business. We all have seen this over and over and over again, especially with desperate agents "buying a listing" regardless of the long term impact to either client or the REALTOR reputation. When I left the real estate business back in the early 90's, I often stated the reason was my love/hate relationship with the NAR Code of Ethics.

  • Love because it was the very best in ANY line of business.
  • Hate because it was so rarely enforced

Don't know if this situation will EVER be fixed. Probably not.

 

Jun 24, 2010 02:14 PM
Allen Shipman
Shipman Partners - Austin, TX

It's funny how sellers get so lost in the moment that reality doesn't sink in.  It's like a love struck teenager that can't find a fault no matter how hard they look. 

Jun 24, 2010 02:55 PM
Josette Skilling
Keller Williams Capital Properties - Bethesda, MD

This is why snake oil salesman have proliferated over time and why the consumer feels sucker punched when it's all said and done.  But as someone above said, we've still not done enough to educate people that this occurs.  We seem to have this need to believe that maybe, just maybe this will be it.

Jun 24, 2010 03:01 PM
Sharon Alters
Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL
Realtor - Homes for Sale Fleming Island FL

You are not selling your house to the highest bidding real estate agent.

Love this line! I had to laugh when I read it because it's so true. Your post could be a script in a listing appointment to overcome the objection to overpricing. There was actually a study done at MIT about people's natural tendency to think their house is worth more than it is.

Jun 24, 2010 04:07 PM
Chris Olsen
Olsen Ziegler Realty - Cleveland, OH
Broker Owner Cleveland Ohio Real Estate

Hi Josette -- Great and timeless advice.  Bethesda...I used to live in S. Brook Lane, right next to NIH and could walk to downtown Bethesda...Fabulous place to call home!

Jun 24, 2010 04:38 PM
John Marshall - FORE!
LoKation Real Estate - Cherry Hills Village, CO
Specializing in Golf Course Properties

Josette, nice postg and so true

Jun 24, 2010 04:59 PM
Anonymous
Anonymous

Nice article Josette!  An alternative might be to offer the seller a marketing system that will fully leverage the power of the internet and other technologies to bring them MORE BUYERS!

Jun 24, 2010 05:00 PM
#27
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

No matter what you do these days - sellers are NOT getting what they want to or thought they could out of the sale of their home. Painful, difficult, but NO amount of marketing will sell an overpriced home.  Even if it did - unless they are coming in with a wad-o-cash the lenders will stop the transaction when the home doesn't appraise.  Denying reality?  Not a good idea.

Jun 24, 2010 08:39 PM
Anonymous
Bob Miller

Hi Josette,

Great post. The same head banging could be done about the seller shopping ofr the lowest commission.  In my market here in Ocala & Marion County Florida, the right Realtor can make 5-10% difference in selling price.  Yet the sellers ignore this and look instead at a 1% difference in commision.  Marion County is still declining at an average of 1% per month; down from 2% a month in 2008 & 2009.  So let the seller price it 5-10% too high (your head banging).  Expire in six months and repeat this 3-6 times - yes I have seen them list as many as six times and chase the market until they have lost 50% of what they would have gotten 3 years ago!  Now they are getting real; listening to you on price, and then trip over 1% in commission.  Bang head  2x!!

Jun 24, 2010 10:26 PM
#29
David James
ReMax Real Estate Services Columbia South Carolina - Columbia, SC

That's why I never give a price in a listing presentation.  I tell the people that setting the price is part of my job and I don't start working until I'm hired.  If they insist on getting a range, I ask if it will factor in their decision about who they are going to pick.  If it is, I walk (that really surprises sellers) and list it after it expires.

Jun 24, 2010 10:46 PM
Anonymous
Jeanne Gregory, RE/MAX Southwest, Sugar Land, TX

I did a market analysis in May for a previous client who was being transferred.  I had sold the house right around the corner from them the week before.  My BMA came in at $250,000.  They emailed me the next week and said the other agent said $280,000 so they were going with her.  The listing has been on the market for 2 months.  Yesterday they dropped the price to $269,000.  By the end of the summer, they will probably have it to $250,000, but then they have wasted the prime selling season.  Sad.

Jun 25, 2010 02:18 AM
#31
Gregory Bain
Mezzina Real Estate & Insurance - Little Egg Harbor, NJ
For Homes on the Jersey Shore

Nothing hurts more than telling the home owner the truth only to see it gets listed by someone that priced it $50,000 higher and then watching it get reduced until they are at the price you gave and then it gets sold. You would think the home owner would be giving you referrals for your ability to read the market and honesty but instead they throw accolades at the agent they listed with because "they" saw the value but couldn't get the price.

Jun 25, 2010 02:30 AM
Valerie Osterhoudt
Johnson Real Estate, Inc. - Cromwell, CT
ABR, Cromwell, CT Real Estate ~ 860.883.8889

Josette.. You might want to take the approach I do.  When it comes to listing homes, I'll mention that I can list a small home for $2.1 million.  They look at me and say "No one will pay that price", then I reply with that buyers will not pay more than it is worth.. and that is the figure we need to come up with.  Not what you want, but what the market will bare.

Jun 25, 2010 02:33 AM
Gayle Barton, Forsyth County Real Estate
BERKSHIRE HATHAWAY Georgia Properties - Cumming, GA
Cumming GA Homes For Sale (404) 710-0204

Great post for the market we are in.  BTW.. Love your name. It's my sister's too!

Jun 25, 2010 03:56 AM
Erik Elsea
Erik Elsea-Jones & Co. Realty - Fort Myers, FL

This just drives me nuts! If I educate my sellers and they still just don't get it then I wanna bang my head against the wall too.

Jun 25, 2010 05:09 AM
Brent Wells
The LivingWell Team - Prosper, TX
Dallas - Fort Worth

Bravo on your post!

We encounter many agents that will 'Buy the Listing'.  I am resigned to the fact that it is a practice that has been a part of our industry and it won't be going away any time soon.  We do our best to educate our potential clients and make sure they understand what the other agents are doing.

You can lead a horse to water...

Jun 25, 2010 05:51 AM
Josette Skilling
Keller Williams Capital Properties - Bethesda, MD

Thanks for the comments!  Looks a universal issue and we should all be issued Tylenol.

Jun 25, 2010 05:58 AM