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What was he smoking? They priced it at what???

$%^&*($-A$$&^($. That is what I often think when I see a new home on the market that is significantly over priced. What is that agent smoking? Why didn’t they TELL their clients that the house wasn’t worth that much money? Are they unfamiliar with the neighborhood? Or did they just take the listing at that price to get the listing?

Nothing makes me angrier with some of my fellow agents than this practice. Don’t they know that by over pricing a home at the starting gate, the home will actually sell for less than it would if it was priced right at the get go?

Don’t hire an agent who will tell you what you want to hear. SERIOUSLY. If they agree with everything you say, why do you need them?

If you tell an agent you think your house is worth 1.5 million, and they agree, make sure they have statistical data to compare it to. You could be dead on, but it is highly unlikely. Numbers don’t lie, people do. 99% of home sellers think their house is worth more than it actually is because they have an emotional connection to the home. (Don’t feel bad, most agents over price their own homes when they go to sell them too).

Hire the person who has the guts to tell you the truth, even when you don’t want to hear it (and often times you won’t even listen to it). That person will be the person who looks out for your best interests even when you may not agree with each other. They will stand by you every step of the way and work hard to help you reach your goals. I have said this before and I will say it again- the first impression may be your only impression. Don’t work with someone who will let you throw it away.

One last thing-if an agent is too scared to tell you- their client- the truth, how do you think they will negotiate on your behalf? Will they negotiate or will they be too scared?

Posted by Ginger Wilcox, Marin County Realtor on 10/23/2007 11:26 PM

Comments (29)

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29 Comments on What was he smoking? They priced it at what???

OCT

2007

TRUTH.

Unfettered Truth, Ginger. I cannot stand an agent that "buys" a listing by telling a seller whatever they want to hear. With the shape that my market is in right now, an overpriced listing only adds to the woes. Price it like you are actually interested in selling it, or stay off the market!

OCT

2007

Ginger - Very nicely done with this rant. I could not agree more with you. Why do people bother to list a home at an unrealistic price? It becomes a massive waste of time, money and effort for all involved. I am quick to walk away from listings with stupid-high expectations on price. In fact, did you read what I wrote about "cake in one hand, eating it in the other" on my blog? This is a prime example of an illogical premise.

GINGER: You did it again. Look at you. All this time out of the rain and you come back in and hit one out of the park. I believe that this is one of the biggest factors in contributing to the negativity in the market. People all talk about how homes aren't selling, but no one talks about the fact that homes are selling because they're overpriced. Basically, all of the homes that are languishing on the market are overpriced. The homes that are expiring are most likely doing so because they are overpriced. EVERY home has a price that will sell it quickly. The only question is how close to that price are sellers willing to go.

What most newcomers to the business experience is a rush to list. Some office have tote boards to motivate sales associates. They aspire to want to make the board. This can be done by listing or closed sales. Telling a homeowner what they want to hear, is not necessarily in agreement with what the market will determine to be a fair price. If you observe your market carefully, repeatedly you will see the same companies overpricing, reducing, overpricing, reducing, but ultimately...not selling. Point here, is let them. Eventually the listing will expire, and eventually the house will get priced to sell.

Ginger, excellent post. Sellers hire Realtors to sell their home in order to get good counsel, help with pricing, and help with negotiations and the selling process. The Realtor does not have an emotional connection to the house and should work accordingly. However, too many agents have an emotional connection to a commission, just not realizing that they'll never get it if the house is overpriced.

FHWH -- The Four Horsemen were here...

Ginger, Great point I hadn't thought of....if they're too afraid to tell the seller the truth they certainly will not negotiate well on their behalf. I think realistic prices sell homes.

The problem Ginger is that there are way to many agents that will take a listing for anything the client wants and then sit on it and do nothing. These agents are in more abundance than the professionals that do as you say, tell the footwork and know the area, the comps and what it should be. Unfortunately this is life in our market.

Ginger - Amen! And I love the photo. I simply won't take a listing if the seller refuses to list at an unrealistic price. It's a waste of time and money.

Over priced listings help no one. The sooner agents learn that, the faster this market picks back up and listings are sold in a more timely manner.

Brian and Ginger - I may need to add FHWH to my LOL post.

Ginger, great information here for all home sellers and potential home sellers everywhere. To many agents out there really misleading clients into listings. (fraudulently actually) If we would just be honest we would do us, our industry, and our clients a lot of good.

Hi Ginger, Well said! I use that example of the overpriced listing eventually selling for under market value in my listing presentations. I've even showed them examples, mls history sheets.

Well I have I lost a couple of listing because they wanted to list to high.

You crack me up. While I agree with all that you're saying the photo cracked me up....we still need to connect at some point...I'll see if I can track you down next week perhaps.

I had this same rant the other day! $100K over where it should be but no matter what the data said her house was better, a gem, worth more. Someone is going to have a sign in that yard before long but it's not going to be mine. Listings will come and go. I'd like to have a chance to get more because I can get the product sold and to get paid!

OCT

2007

PAUL- You got it. If you don't want to price it to sell it, leave it off the market. We have enough inventory.

JASON- I hate to rant, but this was deserved! I didn't read your cake in one hand, I'll go look for it.

ADAM- I don't know if my rant really deserves to be called "hitting it out of the park", but it was something I feel very strongly about! You are so right- the boatload of inventory we have sitting are overpriced. Well prices homes in my market are still selling quickly, and many still with multiples. It is the other junk that makes the market stats look bad.

ALLISON- Yes, the same companies and same agents often are the culprits of the overpricing game. I don't want to just "let them", however because it hurts the whole market and that poor seller who isn't be told the truth.

BRIAN- Yes, I think that commmission carrot makes some agents make poor decision. I never think about my commission until a property is closed escrow because I want all my decisions to be based on what is best for the client, not for me.

CAROLE- The best marketing plan in the world is the right price!

GAYLEN- Sad, isn't it?

TOM- Isn't that photo great? I completely agree- a waste of time, money and a possible black mark on my reputation! No thank you!

MICHAEL- They don't help anyone- they hurt EVERYONE!

JASON- FHWH should go down. I think you might need to do a followup post!

STEPHEN- Are we idealistic? It would dramatically change the market, wouldn't it?

MIKE- Good for you, I do the same thing. It is the only way to make sellers understand that you can't "test" a price without negative results!

VICKI- Don't consider it a loss- it is your gain that you aren't wasting your time and money on something that won't sell and will hurt your reputation.

LARRY- I really liked that photo too. Yes, we do need to connect. Let's get a time on the calendar!

JOSETTE- GREAT attitude! I love it. You know, you will get more and it won't be bringing you down!

OCT

2007

Hi Ginger, former AZ girl :-)

Great post.. Funny, I was thinking of posting a similar blog recently. My assistant and I went to look at a home near by that was recently listed at (approx) $200k over market! I had to go take a look to see if it was ME that had mis-understood the values in that neighborhood. Nope.. It has been a really long time since I smoked anything. :-) This poor "seller" is sitting on a vacant property in a market that is not heading in their direction.

OCT

2007

Ginger, Excellent post and I LOVE the picture! If only every single person who is considering selling their property would have the chance to read your post first...unfortunately they are easily fooled by unscrupulous sales representatives who offer them the moon just to get the listing.

((-:

OCT

2007

Hi Nick. Isn't it funny how some listings can make us think we don't know what is going on in the marketplace? Did we miss some big upswing in that particular area? NOPE!

Jo- Yes, I think every single seller considering moving in my area should read my post and the rest of my blog. And if they want honesty and experience, they should hire me!

Ginger,

Great post!!! I think all agents should read your blog post. Taking an overpriced listing not only hurts the client, but does not reflect well on the local market. Price the homes to sell!! I turn down more listings than I take.

OCT

2007

Harold- You are absolutely right- overpriced listings do reflect poorly on the entire market. If we could get rid of the stale, overpriced listings, everyone would see our market is actually moving!

Ginger,
True words and advice. Why does anyone want a listing they can't sell? Beats me!

OCT

2007

What were they smoking...love it. Yep, we do have to have the guts to tell them the truth. We could change the word from guts to Integrity also. Don't ya just love it when your competitor takes the listing, then goes in a few weeks later and says...hey "we're too high" Yep, ya just gotta love it :) :)

NOV

2007

Cynthia- I don't get that either. Some agents think they are doing their sellers a "favor" by listing it high. I don't get that either!

Kathy- Yes, integrity might be a better word. Isn't it funny how that conversation eventually takes place? Whoops! Sorry Mr. Seller. I don't know how it happened, but we are too high.

NOV

2007

Ginger - Boy am I with you on this one. It has to be one of my biggest pet peeves as well. I have been fortunate though in that I have taken over many listings over the years where agents told sellers what they wanted to hear. It is a great feeling when you take over, get it at the right price, and then it sells right away. Makes the other agent look like a shmuck!

BTW - I love the picture...Where did you get it?

NOV

2007

Bill- You make a really good point. Why take the overpriced listing so that someone else can sell it later and you never get paid for the work and marketing you did? The pic is from istockphoto. Isn't it great!?

NOV

2007

Ginger - Great visual and I agree 100%. I have made a pledge... I will not take overpriced listings, I would rather have no listings at all.

NOV

2007

DEBBIE-Good for you! Isn't the visual great. Overpriced listings don't do the seller or the agent any good. The agent would get more return on their investment spending some money and time with their past clients.

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