My Biggest Failure...Not Keeping My Mouth Shut and Overpricing Home
I had a listing appointment for a sweet little house and the couple owned it outright. So I showed up with all the comps and everything was fine until we got to the price. No they wanted to list it higher and if it didn’t within 30 days they would agree to reduce it.
I should have put my foot down and left right then and told them to get another agent. I wanted to list it for $205,000 which was really stretching it and they wanted $221,000 and reluctantly agreed to 6% Commission. I knew it would never get any offers for that price but I am not a quitter so I was sure I could convince them in time to lower it to a reasonable price.
30 days came and went and many showings but the agents wouldn’t call back with any feedback. I got them to reduce it but only $2,000. I knew this was going to be a long 6 months. Another 30 days and another $3,000 lower. So it went like this for several more months and no offers. Then I made an appointment and went to talk with them rationally about lowering it to my original price of $205,000. The husband sat and talked about being in the war and working hard. Then he asked me what I had done all my life? Had I been a Realtor for 25 years or more? No, I told him and opened my mouth and told him I had been a county employee for 28 years but had retired 10 years ago. He was amazed and said I must have started when I was young. Yes, I was 21 years old when I started. So he proceeds to tell me that the retirees are ruining the city. No, I didn’t work for the city but the county and they are in great financial shape. So this conversation went downhill and all I wanted to was to just leave.
So he agreed to reduce the price to $205,000 but wants me to cut the commission to 5% and prefered 4%. I told him my brokerage doesn’t allow anything lower than 5% but that he was making a mistake as the Realtors will not show it. He didn’t care as he said he would just keep it and rent it if it didn’t sell.
So I lower it to $205,000 and reduce the commission to 5%. Of course the property gets shown a lot now as it is priced right but the Realtors are all calling complaining of the low commission. But we finally get 3 offers and they accept one which is good but they are asking for $3500 in closing costs. Appraisal comes in on the FHA loan and it is for 205,000 but not for $208,500 including the closing costs. Just Great!
Seller gets mad and says he just wants to cancel. I talked myself blue in the face but he refused to sell it for less than $205,000 so if the buyers can proceed without closing costs…lets go for it or if not, I want to take it off the market. So finally I gave in and took it off the market and walked away.
Lessons Learned:
1. Do not discuss your personal life and finances with your clients. I should have never discussed being retired as that just opened up a can of worms. He was retired too but was incensed that I had a good retirement.
2. When he demanded I reduce the commission, I should have said “no” but thought I could rectify the issue. Frankly, I didn’t care about the commission in this one instance since I had already devoted 5 ½ months chasing the market until I got it at the right price but the other agents apparently did. It made it hard to sell and by keeping it on the market longer, the prices had gone way down in the 5 months.
3. I should have never agreed to list it $16,000 over what it would appraise at. I had many good comps nearby and nothing more than $210,000 and it had more upgrades than subject home.
*I SHOULD HAVE WALKED AWAY. I am always game for a tough listing and I was sure I could convince this nice senior couple to listen to me. I provided. Unfortunately they thought they knew more than me and that was the problem. They didn’t care about the comps and thought the appraiser was an idiot.
Oh yes, he had one last option for me. He said I could pay the $3500 buyer closing costs and he would proceed with the sale. I told him NO and that was it……………..
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Kristin Hamilton DRE #01492138 Keller Williams Realty
I am a full time agent and deal in all types of real estate transactions. Trusts, Probate, Short Sales, Standard Listing, Single Family Homes, Apartments 1-4 units, Duplexes and Condos. I am also an experienced REO agent. I sell real estate in the Riverside, San Bernardino, Orange, and Los Angeles Counties. I am a trained and experienced Short Sale agent. If you are looking for a professional and experienced agent, I am just a click away. Google me at Kristin Hamilton-Real Estate Agent. Homeowners and Buyers both will find my services top notch and successful. Call me to sell your home; both traditional and short sales.
California is a dream-come-true state no matter what your needs or wants are. We have year round warm weather, beautiful beaches, rustic mountains and desert communities. If you are looking for a home in Southern California, please contact me. I am a local California Realtor, live in the Inland Empire community and am aware of the local market. I am here to help you find a home or to sell the home you currently own. California has great opportunities to view Nature and Bird Watching. Whatever your needs are, you will find it here in California! From the Inland Empire you are 45 minutes to the beaches, mountains or desert. Housing is affordable in the Inland Empire area!
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