Leigh,

I'm with you.  The only way I will take an "overpriced" listing is if the Seller agrees <in writing> to adjust the price if there are not "x" showings and/or an offer within the first 2 weeks of the listing period.

If I generate Buyer leads from a listing, that's great - but not at the expense of fulfilling my obligations to my Seller client.

Thanks for a great share.

Laurie Furem, ABR, ACRE, e-PRO

Leigh This is a weak agent Thinking that they will run open houses to get other buyers and sellers WAKE UP the area where the home is those people will wonder why you could not sell the home. It's agent like that, that create over priced areas where one client says the home down the street is available for____

Leigh, I guess you probably know my thoughts on this already. I agree this is an unethical practice. And it will kill your business. NEVER take a listing you can't sell.

This person needs to g to work for a"we'll place your property in the MLS for $595" company. Since that is their biz plan. Place a sign in your yard for a fee so we can get buyers and mortgages.

My market is swamped with over priced listings. And I'm talking way over priced, 30% to 50% or more. I just don't get it.

Leigh,

I loved your response. I work hard to raise the bar in Southern California where I live and work so that we are no longer thought of "the gum on the bottom of the used car saleperson shoe".  I would like to think there are some pretty great car salemen out there as well!   If that agent is going to be a discount broker or "put it on the MLS for a flat fee" agent, then go for it; but its unacceptable for him/her to put themselves in the same league as respected realtors that do this for a living, fulltime and handle business with clients' best interest and their fudiciary responsiblity in mind!   

With that said, sometimes taking a slightly overpriced listing might be acceptable under the right circumstances and with the agreement that you will re-visit the price in 2 wks to lower it where it should be.  ** The problem with this theory and why its not used more often is that the those 2 weeks are critical and if you missed a buyer because of the initial price, they are usually gone, unless you're really doing your job to stay on top of things and keeping up with every agent that showed it so you can update them to the price change.  But 2 weeks is enough time for them to find a home that was priced right from the start!!     

Laurie-I do the same thing with slightly overpriced listings-have the reduction in writing from the time of listing-but only slightly overpriced ones!

Bob-I hear ya.  Those weak agents kill you and me and every other hard-working agent!

Bryant-I don't get it either.  Be what you are, but for the love of Pete, don't say it out loud on a blog post, and admit to the world that you don't give a rat's %^& about the seller!

Lisa-Thanks-I think there are great car salesmen too!  But this guy is continuing the problem of us all being lumped in together, good or bad...and yes, i'll occasionally take a slightly overpriced listing if we agree up front to a set price reduction.  The post that this guy commented on was in regard to an expired listing that had already expired twice-all at the same price-and he told the interviewing agent that he had to have his price, and would change real estate agents til he found the one who could get it!

Leigh ~ comments like that make me ill too.  There is no good reason to take an over-priced listing, just to get other business.  It does the seller a huge disservice and gives our industry just one more black eye.

kk

Good Morning Leigh! 

That is one to walk away from and "no, thank you" too in my book.  Sometimes its an envigorating feeling to say NO!  :p  Have a great day! 

I suppose - playing Devil's Advocate - that if it was CLEARLY DISCLOSED TO THE SELLER the fact that the listing was so over-priced in the agents opinion, it wasn't going to sell, and they were only taking the listing for free advertising for the agent, and the Seller knowingly and willingly agreed to this, and to cover the up front listing expenses - then would the agent still be behaving unethically?  I personally wouldn't do it!

100% agree. The moment the focus leaves the value added elements in building relationships and turns to "listings at all cost" you have started down a slippery slope. It's easy to lose trust, hard to gain it back.

I agree, I've overheard agents saying things like "I just took a listing that will never sell" or I have an overpriced listing so make an offer"

In August I had a seller that wanted to list their their place at $750K. I had just sold their nex door neighbor's identical apartment for $675K. I told them it won't go for more but hopefully they should be able to get the same. I was honest and also told them they should wait til next year because they had not lived there for two years so they would have to pay cap gain tax. They went with another broker It is still on the market now at $599K

It is hard because I'm supposed to have a certain amount of listings but I rather make sales. 

Never take a listing that is so over-priced it won't sell unless you have an irrevocable written agreement with the Seller regarding price reductions after 21 days, 45 days, etc. - and then still be very careful.

One thing I've learned loud and clear from being out here on AR --- overpriced?  Next...

Leigh, I really appreciate you comment and I see where you and some of the people who have posted comments on this come from, but the truth is that it bothers me somwhat that some of you are taking overpriced listings only if the seller agrees to drop the price in a few weeks... as if the fact that the seller promised to drop the price in the future somehow erases the damage that an overpriced listing creates.

For starters, an overpriced listing makes the market look unrealistic. But that is not all; we all know that the first two weeks of a lsiting being on the market are the most critical. It is when other brokers notice that a new lisitng is on the market, it is when a listing shows up on a hotsheet, it is when a sign pops up in a neighborhood, it is when the listing agent launches a marketing campaing... it is when people notice a new home on the market. And if you overprice a home in this critical time, it doesn't really matter that you drop the price later on, because you've wasted precious resources that you won't get back. And to top this off, when you lower the price of  a home, buyers start thinking "what is wrong with that house?"...

Leigh,

Thanks for sharing your thoughts.  The responses to blogs are just as interesting as the blog posts.  Make it a great day !

Great points. Obtaining other neighborhood listings and buyers (sign calls) are a "side effect" of getting a listing. Like Bryant said, dont take a listing that you cant sell.

Leigh, at the very least (best?) an overpriced listing can always serve as a bad example of a particular pricepoint! As a buyers agent I try to always throw one or two mutts in the mix to make the true value look 'oh so more attractive...'

KK-yep-i don't need any more black eyes courtesy of others!

Lisa-saying NO can be the hardest yet smartest thing to learn in real estate, yes? 

Tony- I personally think that yes, it's still unethical because the paperwork in NC for exclusive right to sell spells out your fiduciary responsibilities...but that's just my interpretation-i'm not a lawyer!

Jeff-that is so true-esp that crazy statement thinking you'll get more listings from it-what? when you've already demonstrated a lack of care? 

Mitchell-aren't you glad it's not yours now?  i'm with you-i want the ones that will SELL

Suzanne-i think you're right to be careful-i think that pre-set price adjustments are a part of that, makes sure that as listing agents we're staying on top of the situation-

Joanne-why beat ourselves up unnecessarily?  better to find ways to build each other up (like AR!)

Yael-I think the reason that you will run into situations where you have a pre-agreed price adjustment ready is for times when the market value isn't cut and dried.  I don't have a crystal ball and don't pretend to-I've been wrong on pricing in the past and will be wrong in the future-as we all will!  It allows you to try the higher price with the expectation that it will be changed if that price doesn't work.  The reason i and some others use a specified time period is simple-we get the price down before the listing becomes stale. Buyers very rarely know about price reductions unless they have savvy agents who pull archive information (and that's not everyone in my market).  We don't use 'price reduced' riders or any of that because it can indicate a fire sale.  But don't do yourself a disservice and think that you'll never have to take a slightly overpriced listing (and i mean within 1-2% of where you think it will sell based on comps)-we all have to guess sometimes.  All of that being said, our average DOM is 60-90 days, so two weeks doesn't kill you if you need to try the top of the range. Make sense?

John-i love reading comments and posting comments-there are some awesome conversations around here!

Mariana-I like the side effects, too-and we, as good agents, should realize that they're gravy-our responsibility is to the ones who have hired us! =)

Thanks to all for the comments-

Geno-I've done the same thing on occasion-the overpriced listings are like the bumpers in a pinball machine...the buyers bounce off of them onto the winners!

How would you deal with the past client or sphere referral that has an overinflated view of their homes value. It's easy to walk away from a seller you met yesterday, but if you have had an ongoing relationship or a relationship with the person who referred them, it really can effect future business if you turn them down.

Patrick-my dialogue is that

'i'd rather let you down today than disappoint you tomorrow.' 

 and follow up everything with stats on the market in their neighborhood and overall.  I've had to turn it down before and I'm sure it will happen again-but even for friends and family (who are arguably the worst clients to have at times)-they have to hear the truth. 

my other dialogue? 'Mr/Ms Seller-may I be honest with you? (yes) Part of my job is sometimes having to say things you don't want to hear.'

And the interesting thing is that (chorus, please chime in) most sellers already know the truth....and are waiting for the agent with the gumption to tell it like it is.  Notice I said most and not all!

Leigh, I'm with you. Not only is it costing the listing agent at least the signage but more importantly it's costing their credibility with the neighborhood. I won't do it and don't admire those that do. But, I'll use them to help sell another house.

Well Leigh, I too am WITH U.  This is the comment i planned to write PRIOR to reading the other comments.  Thanks for your stand!  We MUST not compromise even in times like these.....if we don't STAND for something, we'll fall for anything!

The FIRST word in Realtor is REAL we must be REAL to ourselves, our clients, and to our industry.  Thanks for "ranting"! Your professionalism is showing.....and making us look good!

Leigh,

Well put...I do NOT like agents who just don;t care about their customers....... they shoud be hunted down and told the facts of life...and told to do what is right or their licesense will be taken from them...

OOPS...this is not kindergarden...I guess just letting a lawsuit or two happen to them is not a bad thing..... ;-D

Leigh,

Sounds like you have had sweathog training, still useful today and still promotes you and your professionalism

I am glad someone is voicing their opinion on the ethics of the business.  It is good to know that this type of professionalism is still out there.  Good for you, keep it up.

Leigh - it really amazes me that there are people like that - not only are you doing the seller a disservice, but you are putting your reputation on the line as well.  How will it look if you have a bunch of listings that expired and did not sell?  Rick and I will take slightly overpriced single family home listings only if if have the reduction in writing, like a couple of you mentioned.  We will not take any condos that are even slightly overpriced because the condo maket here is taking a hit.  I'm really glad to see a lot of us have the same business ethic.  Thanks for pointing it out.

Leigh-good catch- missed the comment but you are right to feel as if it is misleading and unethical. I would add that if that seller has "already been thru a few agents" a red flag should have shown up before you ever set foot on that property. If that agent went after an expired like that- without being able to adjust the price- should have walked. If he were approached by the seller to list- he should have asked a few important questions before agreeing to head over there-1) can you tell me why you feel the home didnt sell with agent 1,2 and 3 ? How many showings, any offers ?... If seller is upfront- the true reason for not selling will rear itself.

Gena-right on!  that pinball approach is great for my listings when i'm not the overpriced one!

Diane-that's why I love AR-a bunch of agents showing that we have good eggs all over the place-

Alexander-I'd agree about letting them sink their own ships if it didn't raise my E&O so much... =)

Dick and Sandy-does Floyd still do Sweathogs? love that training and always relevant-

Laura-it's all about policing ourselves, isn't it?  probably always will be...

Rick and Ines-again, it's good to have similar business ethics with others, it helps us all to raise the bar!  and nothing wrong with correcting a price if it's not working-as long as you're working FOR the seller (which was what shocked me in that comment, the utter disregard)!

Michele-that pre-qualification time before going on an appointment is critical-it's why my info sheet has to be filled out before i even set an appointment or before anyone on my team is allowed to set an appointment-saves time and energy. heaven knows those are both in short supply!

Leigh.....  wow...late to this party.  And as you know, I am not a realtor. But this would upset me also. I have actually seen this same tone in a few blogs. Bryant even wrote a blog similar to this and someone chimed in asking why would it matter what the seller sold the house for. There was more to it.

But as so many stated, it comes down to ethics. And I guess that is why I like so many of you in AR. We have something in common which is very important.

Leigh.....good job. 

Sometimes it is just not realistic.  I had a seller who wanted, no insisted on getting $385K for his hime.  Believe me his home is very nice and was designed by his son.  Regardless, it needs to be in the right location.  There are tons of other homes that people would see before even looking at his.  The beauty is not on the outside, it's on the inside. In all good conscience, I could not take his listing.  And I'm serious, a year later and it has never gone on the market. 

I'm chiming in late too, because this is one of my pet peeves. Too many agents are willing to let the clients do themselves and everyone a disservice by taking overpriced listings. I submit that it's better to have no listings and just work with buyers, than to take that overpriced turkey. In my market, there are asents that I don't even bother to show their listings, because they are always so dramatically overpriced. I take that back, I do show them, just before I show them the house they should buy, when I want to dramatize to a buyer what a good deal looks like.

Jeff-it's just amazing that so many people with licenses don't get it...I hope that guy reads the blogs you refer to, and learns some new approaches!

Netta-you did the right thing relying on your conscience and not allowing him to justify his price with your reputation!

Michael-you slipped in while I was responding! =)  You demonstrate the pinball technique perfectly-using other agents' mistakes to help close your buyer...=)

Leigh, thanks for taking the time to answer to my comment. I completely agree with you in the sense that if you have determined a price range for a home, you may try to start at the high end of the price range and then reduce,... what I am not in favor of is starting with a price above the high end of the price range.
I am not an all or nothing person, and I see where you are coming from. I am sure that you agree with my last remark too. I believe we have found a common ground :)

Leigh.... I do the same in regards to mortgages also. But I ask the client why this lender didn't point this out or point that out.  Not talk down about them, but point out what I am pointing out and then ask, why didn't they point this out?  

Ivan-The high end of the range is almost always my cutoff-I say almost always, because our market is nudging upward and sometimes if the neighborhood and condition and inventory levels warrant it, you might have to start a little above the range-not much, again i'm talking 1-2% tops-so you're not leaving anything on the table.  that being said, i prepare my sellers for the scenario in which the house does not appraise and they have to come down anyway....which usually leads them back to reality. i don't think we're on different pages. =)

Jeff-i don't even ask why the others didn't point the facts out-i just kill them with more information than they could possibly have received before...sadly, it's usually the net sheet that they've never seen!  =0

"The Lovely Leigh"

You Rant...I Roar. That's a pretty good mix. :)

This is so bad. I saw it too. Glad to see someone step up and write a post about it. It is not the first time I have seen something like this. I saw one that said listings, overpriced or otherwise, were money in the bank. Huh? What in the world is wrong with that picture?

So how high do you think we can raise that bar? This was a good start. I hope others will chime in with what they have seen in comments. We can start raising the bar right here on AR. :) 

P.S. Do you think some folks will now go around deleting comments over this? lol...

TLW "The Lovely Wife"...You Owe Me A Commission For This Comment. Joke...ROAR!

TLW-you crack me up!  i admit that i've checked that unnamed post a couple of times to see if the guy has noticed that he got 'caught'...and it's still there. =)  hopefully he WILL read this and think about it and LEARN-there's hope, right?

Man. You are quick on the draw. :) I certainly hope he reads this and edits that comment. Now, if we could snag that other one we'd be in business. :) Where there are people like us there is always hope. I know you agree on that point. Great Post. Lots of "I have nerve". That's you. I like that. :) TLW...ROAR!

I can move fast when the kids go to bed! =)  It's kinda like watching the listings that you don't get in MLS just out of curiosity (or a sadistic pleasure in seeing them not sell?), i'll keep checking that blog to see if he catches it. =)  i'm glad you call it nerve...some have other words for it but hey-what you see is what you get. =)

That kind of thinking is very short term. Why would you ever take a listing you knew you would never be able to sell?  What does that say about you?  Your reputation?  I don't get it. -cr

very true-if you're not looking at the long term implications, is it a job or a career?  good point!

Leigh

A well-written post on a very disturbing comment, and unfortunately among many we have heard. No point rehashing what others have said. Smacks of no integrity, an ethical violation, and another example of why REALTORS continue to end up at the bottom of consumer surveys ranking various professions. Geez, that agent should at least try to cover up the lack of professionalism when writing about it.

Don't you wish you could call the Realtor and say "See, I told ya you wouldn't sell it" :) Okay, so maybe that has just a little sadistic in it. You convinced me. Good Sale! You must be a Realtor. :) I have other words for that "nerve" but I can't place them in a public post. Use your imagination. Here's a hint, Men have them we just borrow them once in awhile. Hope you caught that one. :) TLW...ROAR!

Or at least make that kind of remark on a members only post so the public wouldn't see it and think we all operate like that, Jeff?  Sheesh. again, i just hope that this particular member sees this post and learns from it-

Oh yes, I caught that one, Mrs TLW, I work hard to control my blue language every day so don't be temptin' me! =

Your turn to crack me up LOL...Blue Language. Good one. Okay, I'll leave you alone. No more tempting. I 'll stay tuned into this post to see how things progress. :) TLW...ROAR!

Hi Leigh

Good advise...walk away we know they are out there. There is an investment we make in every listing we accept. We invest our time, our expertise, and our money to advertise it in a variety of ways. Virtual tours, prints ads, flyers, classifieds and others too numerous to mention. Unfortunately, as much as we try to encourage, Realtors to use "good judgement", it is only a result of experience.

Great post-

I wrote a blog about something very similar last week.  I am working with a seller who bought high and now has himself in a bad financial situation.  I gave him the comps which, because of the market change in my area, are way under what he paid.  I really think it is our job to paint a realistic view for our customers and not accept an over priced listing just to win the numbers game.

Hold up.... Leigh.....i must re-cant, and 'fess up.....now, i have taken a few over-priced listings.  Not for the purpose of gain for me, but for the benefit of the client who needed to "SEE" prior to coming to "reality".  The listings DID sell AFTER the price was lowered.

Now, proper CMA's were prepared, appraisals discussed, and proper procedures followed.  What one particular client based her set price on was the value she expected she added when she upgraded her home prior to placing it on the market.  There was NOTHING i could propose that would convince her further.....so i listed it based upon HER OWN assessment. 

When she saw that it did not move after nearly a month, she agreed to my original recommended listing price, and we received an offer one week later that did close later.   At times, depending upon the "personality" of your seller you may have to dance to their tune.....until they take a liking to your music.  In a few cases we were able to turn deals around.  Each scenario presents a different call -

Leigh - Now, i DID overprice my FIRST listing that did not sell. It expired, & another agent picked it up, and sold it right away! (i did not know what i was doing... did not have formal training - still don't), and was just GLAD TO GET A LISTING AND DISPLAY MY SIGN!!!  (please don't bash me - i'm telling the TRUTH here)  That was 2 years ago (i'm a newbie) - i've made many many mistakes.......but i have learned, and am still learning.  I still, however, WILL NOT "DO IN" a client just for the sake of a "piece of change" or other wrong motives......that would really bother me too!!

Hey Diane-i hear ya!  I think we will ALL take some overpriced listings because none of us are perfect and none of us have crystal balls!  wish i did, though!  my beef was with that guy saying 'what the hell? sell off him and screw the seller' which is just all shades of wrong.  I think there's a huge difference between those who make mistakes and those who take overpriced listings with the only intent being to make money off other sales and never plan to sell the listing. =)

Ups, I was just reaidng back on your post to check out some of the new responses and I realized that in my last comment, I was signed in with my husband's user... I hope it didn't confuse you, but now you know it somewhat makes sense when it trails back to the original comment and your response to it...