I wrote a blog the other day about thriving or surviving in this changing real estate market.  You can read the blog here:  Survive or Thrive - Carpe Diem.

In response to that blog, I received the following email:

Right, right, I hear you loud and clear new agent, and my answer isn't pretty.

A few weeks ago I went to seminar at one of our sister offices in another town, on how to get price reductions.  It was very informative and interesting with some great perspectives from top producing agents on what they were doing right now in this market to get their seller's to be more realistic.  But my big Ah-ha from this discussion wasn't from the presenter; it was from "Gnat" an agent in the audience.

About three quarters of the way through the seminar I could see that "Gnat" was getting agitated.  He started interjecting his thoughts more and more.  Eventually he stood up and started shouting and pointing his fingers at the group (I'd say about 50 agents).  He said, "Listen you guys, you're never going to work these deals like you should, why don't you just give them to someone who will?"  I have to admit, I was surprised by this little outburst.  I rolled my eyes at the guy sitting next to me.  As the seminar went on, and more ideas were being shared, "Gnat" stood up again.  This time he was boiling and waving his hands all around, he again said, "If you can't do your job, then let me do it!"  He started shouting "2.5% of zero is zero, if you just let me work your deals, I can sell them, I can close them, I'll even give you a referral fee!"  Now I look at the guy next to me and really roll my eyes.  "You're just not working the deals, give them to me!" Gnat shouts.  

Ok, ok, so this little town breads some serious hostility I'm thinking.  I better get back to my valley before this crazy guy really goes off.  So after reading this email from new agent, "Gnat's" rant came to mind.  Ya know, "Gnat" is right, you gotta work these transactions.  This is not 2006 where you can put an overpriced listing on the market and it will sell anyway.  Today you have to know your hyper local market and you have to be able to communicate the market data to your seller consistently and in a form that he'll understand.  It takes hard work and a commitment to the process to make a seller understand.  Our job is so much more than just real estate.  It's also about understanding people and how they need the information delivered.  Some people are very visual and need charts and graphs, others only need the numbers.  Some are emotional and need time to digest, others are very bottom line and just want the straight story.

So new agent, here is the answer to your question.  Don't take an overpriced listing in the first place unless you are prepared to go the distance.  And if you do decide to take the overpriced listing then you better gauge your seller's motivation before they sign on the dotted line.

If you wouldn't bet the farm on your CMA and you don't know how to compute absorption rates then please partner with someone who does.  "Gnat" is right, 2.5% of zero is a big fat ZERO!  You are doing a huge disservice to your clients if you take listings that are overpriced and you don't know how to get a price reduction.  And even worse than this, you're messing up the market with all of this stupid overpriced inventory sitting out there.

What happened to the days when new agents had to partner with a seasoned agent for the first several transactions?  Why don't we do that anymore?  And if you're not experienced in this market then you're new.  You cannot learn this market from a book or training class.  This market takes dedication and a through understanding of the numbers. 

When I look at the MLS and see listings grossly overpriced for months on end it makes me want to bang on the seller's door and ask them why?  What does your agent say Mr. Seller?  Does he give you the market data?  Don't you know that only the top10% of the listings in your neighborhood are selling?  Is your agent providing you with weekly updates on showings and feedback?  Do you know how many houses are in escrow?

So new agent, the answer to your question is, "Just say NO."  Don't take the grossly overpriced listing and if you do decide to take a listing that is overpriced, make sure the seller knows your marketing plan before hand.  Have a strategy for price reductions and use the numbers to tell the story, not emotion. 

2.5% or even 3% of zero is still ZERO no matter how you look at it, so if you're having problems getting correct pricing on a listing, please ask someone for help.  It's better to take a referral fee and get the house sold than to make yourself and the seller miserable.  Don't spend money on advertising and carry a huge inventory of houses that will never sell, it just doesn't make sense!

Before I hit the little publish button here, I have two thoughts. 

1. Anyone that reads my blog or knows me personally understands that I am the first to jump in and help any agent, so this post comes from a place of smacking some sense in to those agents walking around complaining about their seller's.  This is tough love guys, your seller isn't the problem.  Just think about who took the listing in the first place.

2. And yes, of course I have some overpriced listings, but I'm working them every single day and you bet that my seller's have the most up to date market data that I can find.  They get it delivered to them in emails, in charts, in stories, and in blogs.  I am in constant communication with my sellers and like "Gnat" my data just swarms around their heads while they try to swat it away.  Eventually I'll get through, I won't stop until I do.