Recently, I met with a Seller about listing their house.  After we toured the house and went through my materials we got down to the most important question the Seller had for me.  How much can I sell my house for?  Notice, it was not how much should I list it for? 

My strategy when meeting with Sellers is to provide them the information they need in order to make this decision for themselves.  I always say I will not make decisions for my Clients.  But, this Seller pressed and I finally gave a price range where I thought the house would sell for.  I could tell immediately when I said the numbers it was not what the Seller wanted to hear.  I knew right then and there I was not going to get the listing.

But, I felt good about myself because I feel one of the best ways to have happy Customers is to set appropriate expectations.  Afterwards, I saw the house listed at a price 10% higher than my price estimate.  I felt bad that I lost the listing but at least I was true to myself.

What do you do?  Would you say a price that the Seller wants to hear in order to get the listing?  Or, do you say what you really think the house will sell for?

Thanks--Mario

House

Mario Jannatpour

RE/MAX Alliance     www.MoveToColo.com/ 

Boulder Area Relocation Expert                                                     

            

Author of the book,

"The Honest Real Estate Agent:

A Training Guide For a Successful First Year and Beyond as a Real Estate Agent " 

Available on Amazon: http://amzn.to/fG61Rx

Spread the word--if you have any friends or relatives considering Real Estate as a career or have recently started, then you need to tell them about this book.  It will help them immensely.  Thanks--Mario

I have also created a new and innovative website for new Real Estate Agents:

http://www.sellinginsite.com/

 

 

9 Comments on I didn't get the Listing, but at least I was Honest to Myself

SEP
30
2010
397,895 Points 45 Featured Posts Called Shot Master

Interestingly enough, Mario, in the REALTOR code of ethics, it says, "A REALTOR shall not, in order to secure a listing, overstate the value of a property."  Hmmm. 

I think this may be one of the most violated codes we have.  I often lose a listing because another agent comes in and assures the seller that their property is worth more than it is.  One of these days I'm afraid there may be numerous lawsuits from sellers who finally realize how much that agent harmed them.

Good for you.  Let's be true to ourselves and the rewards will follow.
1:34pm • #1

I have to say great job.  Why waist your time and money just to say I have a listing. 
1:35pm • #2
717,480 Points 2 Featured Posts Localism Sponsor Outside Blog

I believe in being honest from the get go! No surprises or wasting each others time.
1:39pm • #3
Outside Blog

Mario I think you handled it correctly. I took a listing a year ago, yes I said a year ago, with this elderly couple. I let him pick the price even though I thought it was too high. I told him that I would let him do this but after 30 days he would have to try it my way. Here we are a year later and $55,000 lower and I still can't sell the house! He never held up to his end of the bargain. I should have walked away that evening. So at least you won't be throwing good money at bad. Another listing will come your way.
1:39pm • #4
6 Featured Posts

Thanks Andrzej!  I appreciate your comment a lot!  :)

Marian--I did not know that statment was there in the Realtor code of ethics.  Very interesting.  You make a great point and thanks so much for writing it.  Makes me feel better.  :)
1:40pm • #5
6 Featured Posts

Thanks Michael--appreciate your comment.

Mary--that's a very instructive story and I am sorry to hear you are going through that and it does give me a good reference point.  Thanks for sharing and good luck with it.  :)
1:43pm • #6
151,805 Points 4 Featured Posts Called Shot Master

Mario,

You did the 'right' thing and you will probably get the listing once it expires with the agent that listed at an inflated price.  Because, we all know, over-priced listings do not sell!

I've lost my fair share of potential listings due to the Seller's not liking my suggested price range.  The numbers never lie and if they don't agree with my market analysis then I don't want the listing anyway.  Over-priced listings do nothing but:  Cost us $$$$, Cause Frustration between agent & client, Give the wrong impression to the neighbors that 'you' the agent can't sell the house, etc. etc. etc.

If you do take an overpriced listing and agree to the Seller's list price (which is too high), get them to go ahead and sign a post-dated Price Change Form.  That way if the house isn't getting shown or you're getting negative feedback about the price, then you have an agreed upon date to change the price to a more realistic number.
1:48pm • #7
6 Featured Posts

Denise--wow, you make some excellent points.  Thanks so much.  I like the idea of the post-dated Price Change form.
1:54pm • #8
188,457 Points 3 Featured Posts Outside Blog Called Shot Master

Mario, even though you lost the listing, honesty is the only way to do business.  It's hard in this market to be honest with Sellers, as we often carry dissapointing news for them, but it has to be done.  I'm sure if they go with another broker at a higher list price you'll watch that list price slowly reduce and then eventually sell in the price range you quoted. 

Denise, you're definitely on to something with that post-dated price reduction form.  Great idea!
6:10pm • #9


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Mario Jannatpour, Author of the Book, "The Honest Real Estate Agent"

Louisville, CO

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RE/MAX Alliance in Louisville, Colorado

Address: 225 South Boulder Road, Louisville, CO, 80027

Office Phone: (303) 543-5736

Cell Phone: (303) 931-8003

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