Overpriced Listings

I have been watching in amazement concerning the listing activities in a nearby building. A few weeks back a unit came to market that I knew was 100K overpriced. Then came the shocker, a unit was listed at 499K, 230K over anything that has sold in this building since the market decline. I am wondering if anyone bothered to look at the comps and notice that there is a comparable that closed two weeks ago for 142K. I have sold many units in this building and am very familiar of where prices should be here.

I have spent a lot of time at listing appointments and work very hard with people establishing listing prices, however, I never left an appointment knowing that I was putting a property on the market at such an aggressive price that it would never see an offer.

Agents make money when a property sells, so is it fair to say they don’t expect it to sell or they are hopeful of a sale. Why would they waste the time and effort on marketing this property? What is the marketing strategy? When this property has no activity, what kind of price reduction do they suggest to the homeowner? Do they believe there is a buyer out there that will disregard all market data and just buy it?

I have sat with numerous people and when I heard their expectations price wise knew it could or couldn’t be done. I remember two instances vividly where the homeowners and I had a vast difference in listing price thoughts, I merely thanked them for their time and left. I knew that the time and effort I would have to put forth would never bring a buyer. One of them even called me in his search of an investment property and yes, he still resides in the home we met in.

Some agents today just seem to list anything and at any price with no oversight or direction or concern for the homeowner. Newer agents should really seek out advice if they are going to overprice a listing just to ‘buy the listing’, not to mention, its rediculous.