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And why wouldn't you? The mere fact that s/he took the grossly overpriced listing seems clear to me that it was a two thumbs up. In essence, by accepting the listing, the agent gave you the validation that the number you came up with was, in fact, the market value of your home.
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83 Comments on Of Course You Thought Your Agent Agreed With Your Overpriced Listing
Very well said. I've got a listing right now that fits that bill. I took the listing but set the expectation that the starting price was very high. We agreed to market it "off market" for a while. Then they took the price down but not enough to drive offers. Now they don't know what to do. I've done "pricing parties" twice and the feedback from everyone is the same - too high.
Dear Charita,
This is a tough one, because some sellers can be truly stubborn. Most eventually see the light, when the same comments come from many directions. For grossly overpriced, it may be best to walk away. No need to spend money and efforts on a listing like that.
We as professionals have a fiduciary responsibility to our clients to be honest. Before any listing appointment I always look to see when and how much the last mortgage was on the property. Then look at the comps and ask myself. With this information would they be able to sell the home with contributing cash to the deal. Or are they in a position for a short sale. If not I don't take the listing. Let the other guy/gal list the home and waste their time.
I beleive you Charita when you say you really want to sell the home because your actions say so.
~Jack
Nice post and a very effective writing style to get your point across - a nice mix of irreverance and straight to the point to make a point! You can really waste time and good prospects if you price something too high. It's especially illogical to go into it thinking (and even worse, stating outright): "If it doesn't sell in 30 days, I'll lower the price." Just lower it now and give yourself a greater chance of having an offer (or two) well before the 30 day mark.
I completely agree. I just had a seller contact me a couple of days ago and wanted to push my "I won't list above price" to $500 above. You gotta draw the line somewhere and I did. Patting self on back.
This post is right on the money, however we know there will always be overpriced listings and agents that will take them. Locally we have the reverse issue with short sale listings price too low!
I guess I'll go against the grain here. I'll never "buy" a listing, meaning I'd never intentionally tell them that it's worth more than I think it will sell for. But, I will show them the comps, explain why I think they'll get $X for it and if they still want me to list it "a little" higher, we'll agree to adjust the price accordingly within 2 weeks.
Bill you said it right. I think our credibility is absolutely on the line. Even agents that take overpriced listing will berate someone else for doing the same. Talk about the pot calling the kettle black. Lucky for the seller you didn't stop at no and the other agent must have felt pretty ridiculous.
Janis the value is what it is and there isn't anything we can do about it. Yes, it's very sad but it's also very true. Sellers are really catching it.
Bob IF it's still there 6 months later, meaning if an agent and their buyer hadn't challenged the price and made an offer based on actual comps and it worked (all the way to the closing table).
Thanks Dominique.
Bryan they took the price down, but I'm wondering if they CAN take it down some more?
Dorte many of them see the light after several expired listings. I sure wish they would get there before that point. I do.
Allen those that regularly take overpriced listings must convince themselves somehow that they are being honest and that they are doing it for the sellers. Others are just interested in self.
Thanks Jack because I really mean it.
"Just lower it now." It seems so simple doesn't it Charlie and logical. At least it does to me.
Renee we have to draw the line if we ever want to rid our industry of the bloodsucking vultures label. Consumers think so lowly of us and we don't need to give them any more reasons to think of us that way.
Kathy they will just never go away. The same is true with short sales, but part of problem with short sales is that the banks want to sell them for more than they are work and lending aren't lending money to homebuyers who have chosen a home for which the seller wants above market prices. It's a catch 22 for real.
Eric you are not alone here. There are others on your side of the grain.
Excellent post Charita, a real catch 22 in real estate, it is malpractice to overprice homes and waste the golden time during the first month. Yet if you underprice the home you appear lazy and only after a quick easy sale at the expense of the seller. Unfortunately, most sellers will always go with the agent who lies to them and tells them thier home is worth more than it is. Whats the answer, require us to prove the price with solid data before we put a price on it? sell everything at auction? ???
Some very good points.
I have had a listing bought from under me before and I am sure it will happen again. I just go on telling them the truth.
I always stick to my number. I visualize the for sale sign leaning over on their lawn and it keeps me honest. LOL.
I also talk to sellers about how long they want the process to go on. If they want their home sold in 3 months -- it's my way or the highway (or another agent -- LOL). Most agents know what it will take to sell a home in 3 months.
LOL! I really enjoy your dry witt.
Thira first I would like to say that I'm very sorry about your experience. In addition, I would like to say that it is my personal belief that NO agent can make a promise about what price a home will sell. What we offer is an opinion of price which is typically based upon a "range" of price points.
I will also say that once the list price on a house goes down, it does not mean that it can't go back up again either during the current listing period or when it is re-listed. I have successfully re-listed homes at higher prices than the previous agent(s) and the home sold for a price higher than the previous listing.
The most important advice that I have to offer right now is when you interview for your next agent, that you both sit down at a computer and review the comparable SOLD properties together to see how the agent comes up with a recommended price so that you can see for yourself.
Best wishes to you.
Thira I hope that one bad experience with a real estate agent doesn't set the bar for us all and I am sorry that you find yourself in this situation. As a Realtor®, I don't subscribe to presenting verbal offers. While Alabama clearly states that all real estate contracts must be in writing, there is no such ruling for offers. However, as a standard of best practices, I present all offers in writing and request that agents negotiating with my buyer or seller do the same. That being said, you are wise to request that the agent submit an offer in writing and I would stand firm on that request.
I don't recommend going the route of an unrepresented seller. After finding the buyer, things can get very complicated and it would benefit you to be represented by a Realtor that has the experience to foresee problems even when everyone else believes things to be going smoothly.
If you'll tell me where you live (city and state), I could do a little research and recommend someone for you, if you don't mind.
Thira thanks for the update. I hope everything works out well for you. I'll be looking forward to hearing about the successful sale of your home.
Best wishes,
Charita