I`m on the phone all morning with a seller who refuses to believe that her home won`t receive an offer of $575,000 as she`s requesting. Yesterday we received what I considered the best of the best in offers that came in at $558,000, closing in 35 days.

The seller keeps insisting that her home is worth no less than $575,000! The problem is she keeps insisting that she must sell the home. I politely explained, "At $558,000 she was netting $235,000." Not too shabby for owning a home less than 3 years! The home will have no problems appraising for $558,000. Again, I asked her to reconsider the offer, but she told me not to take less than $575,000.

I`m starting to see a pattern with certain sellers and quite frankly many should start removing their homes from the open market with unrealistic profit margins.. Anyone experiencing the same problems? 

 

9 Comments on Should I sell or should I stay?!!

AUG
12
2006
14 Featured Posts

Yeah man.  For some reason these people think that they can demand a certain profit margin....I guess the profit they think they deserve for having owned a home for a couple of years.  The problem is, when the market won't support their built-in profit plan, they get mad at us.  Sometimes you just have to walk away if she won't be reasonable.  Or, just let it sit on the market and continue to politely remind her that it's overpriced. 

12:21pm • #1
434,714 Points 70 Featured Posts Outside Blog

Agree, but it`s the Sellers right to request that we as agents follow their wishes.

Eventually the Seller will come down from the Ether and allow you to sell the home..

12:54pm • #2
155,624 Points 18 Featured Posts Localism Sponsor Outside Blog

A listing agent has a fiduciary duty to the seller. Following her wishes may not be in her best financial interest.  She may never get an offer higher than $558,000.

 I don't know your market or how long it's been on the market but I'm sure you do. The fact that she says she must sell is a good sign that she is a motivated seller.

I just had a very similar situation. When I first went on the listing presentation she wanted $750,000. I thought it would sell for between $650,000 - $700,000.  I told her I would list it at $699,000 and if it was worth over $700,000 through my marketing strategy and exposure the market would bid it up.

She seemed agreeable but said she wanted to think about it. The next day she called to say she was going to list with another agent for three months who told her she could get her $825,000. The agent said she had special buyers.  I asked her if she signed yet she said no. I asked her if I could come see her in the next half hour.

When I got there I joked about the other agent. I said I wish she could get a million but it's not realistic. 

We sat down at her computer and I logged on to my mls  the NYT times yahoo everything online. I showed her sold currently on the market and ones that didn't sell.

 She paid $400,000 2 years ago. The last sale in the building same apartment was $495,000. I convinced her and she listed it with me for $699,000. at 6%.

She called the other agent and said if she brought a buyer for $825,000 she would pay her an extra 1%. 3% to me 4% to the other agent.

I had a comprehensive marketing plan the apartment.  I set up Broker Open House tours in the neighborhood with lunch served courtesy of Wells Fargo mortgage, emailed 4/color flyers to every agent in my market,  Open Houses, advertising, internet strategy bla bla bla.

Only 1 offer in 3 months. $650,000. She didn't want to hear it "Tell them I'm not accepting $650,000. The agent who's buyer offered $650,000  from the minute I met them started telling me how overpriced the listing was and we are in a different market now. I convinced my seller to counter. I said it's always a good idea to start negotiating when its all you have. If a better one comes along I'm still showing. You don't have to sign anything. In my market unfortunately brokers are not allowed to write contracts only lawyers. So we do everything verbal or written but it doesn't mean anything until both buyer and seller sign the contract. So even if a seller accepts an offer they can take a better one until the contract is signed.

The buyers came up to $675,000 but she got stuck at $677,500. We were at a stand still. They were good buyers putting down $200,000. I called the other agent and said we're $2500 apart it's a 6% commission many are 5% would  she split the $2500 with me $1250 each. She agreed the seller agreed we had a deal and it sold and closed for $675,000 a $275,000 profit in 2 years. Where else can you make that kind of money. Take the money and run.  I hope this helps.  

2:31pm • #3
204,137 Points 6 Featured Posts Outside Blog
We had two listing like this in the last 12 months both I released.  It was simply as waste of our time and money they moved on to another company and guess what 6 months later they haven't sold them either.
4:33pm • #4

If funny you mention that. I'm a Mortgage Loan Officer, and I do open house with this particular Realtor.

Well she have a listing thats been on the market for about four months now. We are located in Miami Florida, the house is in NorthMiami.

It's a beautiful neighborhood, and the house is hugh. It's about 2000 sqft. Now she was first asking for $420,000. The reason why is because someone sold a house for $450,000 about two months ago in her market area, the house was 3500 sqft.

After a month she bought it down to $399,000 thats when I came in to do an open house for her because she never received a buyer. We did our first open house, and an ex- baseball player offered her $350,000 she declined the offer, saying her home was worth more.

Mind you the Real Estate Agent never did a pencil search on her house so this lady really don't know what her house is worth or the market in her area. She is just going buy what she invested in the house, and what the house in her area was sold for.

Now after 3 long months no offer, but the one from the ex-baseball player, she dropped the price to $360,000. We tried calling the ex-baseball player but he already bought a house down the street from her. She regret not taking the offer, and she is now truly motivated. Not to mention she owes nothing on the house.

 

8:52pm • #5
AUG
13
2006
Sometimes Sellers are in such denial that they really believe someone will "Give them what they want". reminds me of that commercial where a buyer walks into a home with a ton of cash, telling the Seller "I`ll Take it"!  
9:36am • #6

I think if you continue to send the Sellers details on the market trends they`ll eventually understand what`s happening. It`s not easy, but it`s our job to educate.

10:06am • #7
3 Featured Posts
We are seeing similar situations in Englewood, Florida, William, but FAR LESS now than we did a few months ago.  Seems that our sellers are coming around to the changes in the market, maybe because we are doing a better job of educating them during the listing appointment. It sure isn't due to anything they are reading in the media.  But like Teri, we do release listings if sellers are not truly motivated to sell and are just waiting it out for a buyer who just wants to spend more than the market will bear.  Good luck, these can be challenging times.
10:50am • #8
434,714 Points 70 Featured Posts Outside Blog
The market has corrected, seems that Sellers are more realistic than before!
8:34pm • #9

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William Seufert

Pembroke Pines, FL

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Florida List For Less Realty, Inc.

Address: 9900 Stirling rd Ste 104, Cooper City , Fl, 33024

Office Phone: (954) 874-3600

Cell Phone: (954) 680-4404

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