I only take overpriced listings if the sellers are willing to re-asses the situation in 30,60 and /or 90 days for a possible reduction.

Michael, during my 2-year career, I've taken my share of overpriced listings.  And you know what, almost all of them sold, sometimes at or near their outrageous price tag.  I think it depends on what your market is doing and how willing the people are to lower their price quickly if the market says no.  Having said that, I do start off with a carefully prepared market analysis, doing a side-by-side comparison of the listing I am trying to get and the recent sales.  And I may try to get price reductions built into the listing agreement.

Michael,  Not sure I buy the connection between quality of agent and willingness to take an overpriced listing.  My bet is that many of the best/better agents take almost any listing and rely on their sales skills to getthe price lowered, etc.

Michael, 

Everytime I take overpriced listings I end of wasting money on advertising that does not work. I have a New Year's resolution to not take overpriced listings.

I have taken overpriced listings with similar plan of revisiting in 30 days.  Every 30 days I have a progress report prepared for the seller that has the showing activity, the marketing that has been done, feedback from showings and a fresh new market analysis.  Seems to work.

Thanks for all your comments and varying views!  It makes it more interesting to read.

Bill, TOP PRODUCERS know when to say NO!  Simply because they already have enough business that they know is coming to deal with!

Mike, I also have a New Years Resolution to learn how to say NO more efficiently and trust my gut instincts (to both unqualified buyers and outrageous sellers)!

Al, I have to agree with you too, IF and a BIG IF they are willing to comit in writing to a price reduction at the time of the listing appointment, I will take it!

Michael, I think it depends on what type of market we are in.  In our current market, I would not take an overpriced listing.

All agents may not be created equal, but some are more equal than others..

Over priced listings that do get a contract could end up wasting everyone time once the appraiser has their say. On listing appointments where the seller thinks he knows better them my CMA I let them know that an appraiser will be looking at the same data and will not be supporting a higher price even if there is an offer. That seems to bring them back to reality.

MIKE - Most Realtors that I speak with can always relate the story of the listing that they initially lost to the over-promising competitor. They then usually can relate how the seller eventually came back to them to get it sold.

EXACTLY PHILIP!  Thanks for all of your comments!

Michael - Sometimes I think they're giving sellers a cup of that Jim Jones Koolaid.  Sad for the sellers that they will be on the market a long time today with overpriced listings.  Good news is, it's easier to be the second agent.

Michael,

I did last year for 2 personal referrals....they were both elderly and adamant.  In each case as I do in every listing that there is a Seller wish for the pie in the sky sale price, even if just 10% higher than mine....have them sign their number and mine for the closing cost estimate so that their is NO need for a conversation when they don't get their number.

I no longer do....no matter the source of the referral.

Mike-I have taken overpriced listings and if the seller insists on that pricing, I have them sign a price reduction form at the listing appointment to reduce the price in 2 weeks/30 days.  

Kudos Mike, My biggest problem with some clients is their first question, which is What's your commission. not interested in the person handling the sale.

You are very correct not to over price your home or you will just end up paying more mortgage payments than you have to! There are plenty of ways to make more money from your property that don't involve raising the price, you just have to find the agent that knows those secrets!

Well, complicated question.  Not willingly, but only with built in reductions.  It is Just not best for the seller to be on the market longer though, so negotiate hard on this point. They'll thank you later.

Thanks for all of your continued comments on this post!