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Taking overpriced listings...

By
Real Estate Agent with ERA Joyner Realty 331464

OverpricedHere in Valdosta, GA we are still very much in a buyers market. We are seeing a decline in the amount of inventory but, not enough to throw us into a seller's market....yet.

Each day when I look at the new listings on the market I am seeing a plethera of overpriced homes.

I try very hard not to take an overpriced listing. The deciding factor for me is just how overpriced it is.

My only heartache with not taking an overpriced listing is lately it seems the ones I have turned down end up selling with another Realtor. The scenerio goes, the owner will list at a price they feel is fair for their house with the first Realtor who is most willing to list it at that price. You will then typically see price reductions after a period of time and the home sells and you, the one who turned it down, has lost a commission.  I have had this happen twice in the past six months. Really not a good feeling at all.

No amount of research can convince some owners that the price they feel their house is worth is too high. So, my plan of action is to start taking these listing with built in price reductions after 30, 60 and 90 days. Have them agree to and sign during listing appointment. Will this work? I don't know. But it certainly can't hurt....or can it? What are your views on overpriced listings?

 

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If you are interested in BUYING or SELLING a home in Lowndes County or the surrounding area and want a professional consultation on current market conditions, please contact me at 229.834.0946  or e-mail me at janice.macmillan@mchsi.com or visit my website at  http://lowndescountyhomes.com

 

 

Janice MacMillan, Associate Broker

Comments (45)

David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

It's a challenge not to take them as evetually they reduce and sell. In our market most are overpriced and selling with or without appraisal issues. Regards Dave

Apr 14, 2013 08:52 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

I have the little "I told you so" tape that plays in my head when I see an overpriced listing finally drop (months later) to the price I recommended.  But not all sellers will drop the price leaving you holding an overpriced listing that you've spent money on to market.

Apr 14, 2013 09:00 AM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Janice, congrats on a feature.

I am little burned by these overpriced listing - in a different way. I took the listing in late fall at a price which was clearly lot above what market would bear - listing of course expired then and I approached the seller once again after market improved. They were happy with another agent listing at the same price and selling it in a day!

Will I take an overpriced listing now? I think I will....

Apr 14, 2013 10:57 AM
Merline D Pennant - New homes, Short Sales and Pre-foreclosures
Regal Realty of the Treasure Coast LLC - Port St Lucie, FL
New City, New Towns, New homes

Janice this is a wise decision you your part.  It just means you get paid a little later rather than sooner.

Apr 14, 2013 11:05 AM
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Janice, 

Critical matter for us is are we in the ballpark?  Sometimes, the percentage is just too far off.  30% too high is not the listing I want.  

Having said that some will sell too high as right now there are just no listings.   I really don't like overpriced listings I don't believe I can sell.  Slightly overpriced is a different story.  In today's hot market we share that if we are not under contract in the first 30 days, we are priced too high or need some other work done.  If it sits too long we lose any negotiating power we have. 

All the best, Michelle

Apr 14, 2013 11:34 AM
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Janice - I use to turn down over priced listings, but now I'll consider them depending on the sellers motivation. I recently had a potential seller who wanted to list $100K+ over market value and didn't have to sell, I was not interested. However that seller who has to move and agreeable to price reductions I will absolutely consider taking. 

Apr 14, 2013 12:03 PM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

Janice: I have taken overpriced listings, but that was in the down market. And they didn't sell. Now? As long as I've told the sellers what a realistic price is. But there are still some properties too hard to sell if overpriced, and those I won't take. Location makes a difference to me.

 

Apr 14, 2013 12:26 PM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I'll take them a little over, but way over... nope, I can't waste my time or money on that.

Apr 14, 2013 12:50 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Janice -- this risk is what happened with Praful.  On that other hand if one agrees to take an overprice listing, then it is prucdent to take the listing with a built in price reduction after 30, 60, 90 days.

Apr 14, 2013 12:53 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M
Janice - I'll take them a bit over priced after I've explained comps to seller and if I believe they're motivated.
Apr 14, 2013 01:38 PM
Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley Realtor since 1976; 408-373-4411

Janice,  Please excuse this egomanical preface but I want your attention.  I've been selling real estate since 1976 and have taken hundreds and hundreds of listings and I've learned this: he (or she) who has the listing when the home sells...gets paid.  Take the listing.  Your question is always a tough problem, but definitely in a rising market take the listing for as long as you can get it.  It may be overpriced now, but not in a few months.  Pay more attention to the seller's motivation for selling than the price.

Apr 14, 2013 02:31 PM
Lori Cain
Own Tulsa - Tulsa, OK
Midtown Tulsa Real Estate Top Producer

Still okay to pad your price SOMEWHAT in a Buyer's market, but I say yes, take the listing ONLY with the agreed upon, built-in price reductions.  And I like Lloyd's comment (#37).

Apr 14, 2013 08:57 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

If it's slightly overpriced, I will do it as long as we have written agreement on automatic price reductions at certain points in time. If it's grossly overpriced, no way! It's a waste of your time and money and they will still blame you if the home doesn't sell, as they always forget it was their price. Built-in reductions on a grossly over priced listing still usually have you chasing the market and racking up those days on market. I learned a long time ago it's better to be the second or third agent in on a listing--by then the sellers are usually "real" about their price.

Apr 14, 2013 09:42 PM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

I would focus on the business that you have, not the business that you don't have or really don't want.  If a seller is unrealistic in price, we walk.  Period.  I know that so many others will say the opposite, but it works for us.  Good post!

Apr 14, 2013 10:01 PM
MeLisa Minter, Realtor
Minter Real Estate Services - Taylor Lake Village, TX
Bay Area Houston Real Estate Agent

Initially you would think that an overpriced listing would be a waste of time and effort.  But if you approach it from the viewpoint of letting the owner know that you think the listing is overpriced and insist that they agree to reductions reductions, then you can focus on the prospects, if any, that you get from this property.  Work those prospects and turn them into buyers, so you can at least make something off of this listing, even if it's indirect. 

Apr 14, 2013 11:43 PM
Kristen Correa, Broker
Kristen Correa Real Estate & Reedy Creek Realty Services - Keller, TX
I love coffee & real estate. I am out of coffee!

ABSOLUTELY go for it. What I mean by that is some consumers are harder to educate, harder headed, but you are the PRO. Show market data, show prices and days on market, do what you said, take it with special provisions about a reduction schedule. Use language that will help paint a picture... "The market doesn't lie." or "The market is like a hormonal teenager. She WILL talk back. The difference is, disciplining the market is NOT an option. You have to listen to the market or you will not sell." Anything poetic and picture-painting you can think of to elaborate on "it takes a willing seller AND a willing buyer" will get the sale for you in the end. Definitely give hard-headed clients a shot. Some of the most difficult transactions I learned ways to word my phrases to get the client on my side and then become very strong referral clients down the road because they see that strength. You have to be very, very convincing and repeat the message over and over and they will be your sale.

Apr 14, 2013 11:51 PM
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

There are times when we can convince homeowners to price the home at a price to sell. Education and repetition is a must

Apr 15, 2013 01:22 AM
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate
Janice, we try not to take overpriced listings, but when we do we tell the seller that we are as committed to getting that price as they are. So to reach that price we'll need to sign a 3 to 5 year listing agreement. That alone usually gets them to price more realistically.
Apr 15, 2013 02:21 AM
Marc McMaster
RE/MAX Centre Realty - State College, PA
Putting my clients before myself

Your strategy of making them sign pre-agreed price reductions is a great idea and one I use myself.

Apr 15, 2013 02:50 AM
Janice MacMillan
ERA Joyner Realty - Valdosta, GA
Associate Broker

Wow! So many opinions on this subject and I am glad there are more out there who have confirmed what I already suspected. I do feel better about the decision I have made and will at least committ to trying it for a while and see how it works out for me.

Thank you everyone for all if your input!

Apr 15, 2013 07:22 PM