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Question - which agent do you feel did the best job?

By Jim Paulson

Real Estate Agent with Progressive Realty (Boise Idaho) www.Progressive-Realty.info DB-17066

July 12, 2011 04:54 AM

There are many different schools of thought on how to sell real estate. Agents are often in a quandry on what to do when a seller wants to price their home over the current market price. I would appreciate feedback on which method you think is best of the options below.

Agent A: Listed a Home a home at top of CMA (owner had agreed to drop price if no offers in 60 days, but never would drop price). Home failed to sell.

Agent B: Re-listed the home an an even higher price than it was previously listed at, but then convinces seller to accept less than Agent A's recommended price.

I really would appreciate your feedback on this since many Realtors face this scenerio quite often. I have been a Realtor for 20 years in Boise, Idaho, yet I will try to refrain from biasing the comments with my thoughts until enough people have had a chance to weigh in theirs. Thanks for your time.

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Bill Gillhespy

16 Sunview Blvd - Fort Myers Beach, FL

Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Jim, Or, we could discuss how many angels... Actually, conventioal wisdom would be to take the listings at any price and work them down in price. I understand the agents who refuse those listings but i see many sales that started out too high and later got priced to market.

Jul 12, 2011 05:40 AM

Dick Greenberg

New Paradigm Partners LLC - Fort Collins, CO

Northern Colorado Residential Real Estate

Hi Jim - In situations like this, it's best to be the second agent. The one who gets the home sold is, by definition, the one who did the best job.

Jul 12, 2011 06:32 AM

Larry Riggs

Century 21 Redwood - Frederick, MD

GRI, SRS Your Frederick County Specialist

I suppose it depends on some specifics that you didn't give. In Maryland it is against the law to misrepresent the price to get the listing. Also, in our current market overpriced homes usually don't even get shown. I would say the first agent should have gotten the seller to sign a price reduction dated 60 days in the future. I unfortunately learned this by having the same situation happen to me. At the listing appointment the seller was very agreeable (verbally) to a future price reduction but later refused to keep his word. Lesson...Get it in writing up front.

Jul 14, 2011 02:06 AM

Jim Paulson

Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID

Owner,Broker

I was Agent A in this transaction. Even though my pricing point was more accurate, my marketing plan was much more comprehensive, etc, the other agent is the one that gets credit for this sale and the next sale as well.

As a purist, I would be the winner since I most accurately predicted the market.

As a realist, the other agent is the winner since they got paid (twice).

I pride myself in my list to sales price ratios, yet evidently the consumer's don't seem to care.

Jul 17, 2011 06:47 AM

Larry Riggs

Century 21 Redwood - Frederick, MD

GRI, SRS Your Frederick County Specialist

Jim,

I think in the long run you're still the winner. You didn't get paid but you did your job honestly and ehtically. That always comes back to you. When I was managing one of my agents ran up against a local mega agent. He was just starting to get traction in his business and the seller asked why he should list with him rather than the other guy. My agent had MLS reports showing list to sale ratios for the mega agent and himself. He then asked the question, do you want to list your house or sell your house? He got the listing and now he's a mega agent.

Jul 19, 2011 06:13 AM

Jim Paulson

Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID

Owner,Broker

Thanks Larry. It isn't always about finishing in first place, it is how you finish that is more important. I have printed their listing and sales price and now use it in my marketing as "proof" of concept of why you need to price it right to start with for my sellers.

Jul 24, 2011 03:11 AM

Sharon Harris

Keller Williams Keystone Realty - Hanover, PA

Realtor

Price it right from the get go. You did the best job as far as the cma and getting the seller to market it correctly. But agent 2 came in swooped them off there feet and provided a sale. maybe they where just lucky

Jul 27, 2011 01:00 AM

Jim Paulson

Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID

Owner,Broker

I wonder if Agent #2 will feel as uncomfortable as the sellers did when I see her in the store. I just wish I new how she was able to convince them to list for more money than it didn't sell for previously.

I wonder if maybe it was the sellers that asked to list it for more and the agent just agreed. Then, I bet they got less showings they realized that was a bad move and agreed to sell for even less?

Jul 27, 2011 03:37 AM

Mona Gersky

MoonDancer Realty, Dillsboro,NC - Sylva, NC

GRI,IMSD-Taking the mystery out of real estate.

Jim, I believe that Larry had a good plan with getting the reduction in writing ahead of time. If the decision to reduce was made verbally at time of listing, the seller should have no problem with the reduction agreement. If they do have a problem, it seems as though that should be seen as a red flag regarding the seller's motivation to adhere to their word.

You might have saved yourself a lot of marketing time and energy...and still could have brought a buyer later - no matter who had it listed!

Aug 08, 2011 12:54 PM

Jim Paulson

Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID

Owner,Broker

Predating these price reductions does make a lot of sense in some ways, but the market keeps changing and maybe at the end of 30 days that might be too much or not enough to drop the price. The only way to know for sure is to keep refreshing the CMA.

Aug 09, 2011 12:06 PM