Overpriced Listings

Managing Real Estate Broker with Long & Foster

Even after 5 years or so of declining prices in my market, it's mind boggling to watch agents, many of whom are not local to the market, taking listings at prices which are very clearly bloated and overpriced.  I truly think agents are walking into the homes of sellers and they ask the seller how much they want, kind of like what they do on Pawn Stars.  "How much do you want for this.?"  The seller says $250,000.  The house is worth $200,000.  The agent gets them "down" $20,000, feels a sense of victory, and walks out with a listing for $230,000.  While it's $30,000 overpriced now, it's possible that it will be $35,000 overpriced with another market "correction".

My comment to this type of agent:  You are a walking mess.  You have no right to be in the real estate business.  This is exactly how NOT to price a home, and all you are doing is setting your client up for failure, and cluttering the market with garbage, unsellable inventory.  which , of course, creates more overpriced sellers because you were too damn lazy to figure out what sellable local listings are and have recently sold for.  You are wasting everyone's time, including yours, which doesn't seem to have much value, anyway. Sorry to rant, but this is almost an epidemic. What the seller paid for their home has zero  (ZERO) to do with today's market value.  Ignore what they paid. 

So, before you make this mistake again, preview a few properties.  Spend a couple hours on researching what the home is truly worth.  Take your time.  And if you have made a huge mistake like this, own up to it and tell your client, immediately.


Posted by

Michael Elliott / Keller Williams Realty


1814 Rte. 70 East

Cherry Hill, NJ 08003

Cell (609) 864-8164 

Off (856) 685-1607

I serve Mercer, Burlington, Camden and Western Ocean & Monmouth Counties in New Jersey.


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Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS

It's not happening here that much anymore, thankfully.

Mar 01, 2012 06:54 PM #1
Captain Wayne - Rowlett Real Estate School
REcampus Fully Accredited Florida ONLINE & Classroom Training in Destin, Pensacola Florida - Panama City Beach, FL
Rowlett Real Estate School / Owner and Instructor

Hey Michael, great blog, you have some good points here. This is where a CMA to show the seller comes in handy.

Mar 01, 2012 06:56 PM #2
Michael Elliott
Long & Foster - West Windsor, NJ

Ok, then ignore my hollering !   :-)

Mar 01, 2012 06:58 PM #3
Ed & Tracy Oliva
West USA Realty - Arizona - Fountain Hills, AZ
The Oliva Team Arizona Agents

Michael I think it is the duty of the listing agent to set the price to the currant Market.If a seller does not want to be realistic to currant market condition's they lose. good luck   E

Mar 01, 2012 07:08 PM #4
Andrew Mooers | 207.532.6573
Northern Maine Real Estate-Aroostook County Broker

Never ask the seller what do you think it is worth either. The wrong ways to price a property..sellers have lots of clever but flawed methods we can get sucked in to or swerve to avoid to stay on the trail to more real estate property closings. 

Mar 01, 2012 07:25 PM #5

Amen! I think some agents overprice listings because they ANY listing is better than NO listing! They fail to consider what happens to their reputation when their sign is in front of an unsold home for 6 or 12 months!

Mar 01, 2012 07:46 PM #6
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Property valuation is NOT a focus of real estate classes and agents are expected to learn this from experience. 

Property valuation is critical for listings AND selling agents.  I did a CMA study yesterday for a current buyer.  It gave them valuable insight into the property in which they have an interest.


Mar 01, 2012 07:54 PM #7
Michael Elliott
Long & Foster - West Windsor, NJ

Great point, Lenn. 

Mar 01, 2012 08:30 PM #8
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