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Beware Of Damaged Goods! The Human Consequences Of Taking Overpriced Listings

If you are taking overpriced listings without any notion of reducing the price of those listings within the first 30 days on the market please read this story. If you do not take overpriced listings please read this story to reaffirm why you will not do so. If you are thinking about taking overpriced listings then read this story.

Agents who take overpriced listings

Whenever you take a listing it is your duty to find out why the seller must sell. I am amazed at how many sellers we talk to who tell us their agent never even asked them why they needed to sell. Don't you think that the motivation of why a seller needs to sell needs to be taken into consideration with your pricing? Of course it does.

A seller calls us in dyer straights and needs to sell her home with a short sale and asked us to list her house. As I began to inquire about her property and qualify her for the short sale process she informed me a very sad story.P Please keep reading, you will see there is more to this story than her husband getting laid off of his job.

Two years ago, yes, read that again, 2 years ago she listed her house with an agent who over priced her house. Now, the seller had no idea at the time of what price to ask. She depended on her agent to tell her what that price was. She asked the agent to be honest with her about what she the house should be listed at. This agent had all the opportunity in the world to price this house to sell. The seller told the agent of her financial situation.

The house gets listed too high. Now at that time they only had one mortgage on the house and they could have sold it for a profit because they had equity in the house. This was in 2006. The market was already heading down, however, the amount they owed compared to even a low ball offer was still a great deal to this seller.

Now, the agent takes the listing, puts it in the MLS, can not even do the 4 P's because they don't allow signs in this community and walks away. After a few months of not hearing from their agent and after looking online to start to see what the other homes around her were listing for and selling for the seller calls her agent to ask for a price reduction!

You read that right! How many of you who fight for price reductions wouldn't kiss her feet for being the one to suggest a price reduction! This agent should have been embarrassed that the seller was calling her. Now the seller gets the agent on the line and says,

Seller, " I think we need to drop the price of the house."

Agent, " Oh O.K."

Seller, " What do you think we should drop it to?"

Agent, " Ah, I don't know, what do you think we should drop it to?"

Seller," Well, I don't know, If you think, $5,000, $10,000, $25000 would help to get it sold?"

Agent," OK, we will reduce the price by $5,000."

Please tell me this agent is one of those agents who did not pay her dues for 2008 and is out of business!I would not wish this agent on my worst enemy! real estate coaching

So 6 months goes by and nothing happens, no showings, no offers. The seller is a nice lady who knows nothing about real estate and hired an agent to do what she did not know how to do. So then they list with another agent and basically the same thing happens again. The market was falling fast at that time and the agent had no clue about pricing a property to sell in a falling market. So again the seller was behind the eight ball with no room to get out.

And now what does the seller need to do because of the inept and inconsiderate agents she had to deal with? Well, she had to get a second mortgage on her house just to keep living in this house and keep her payments up on the house and the bills. She never would have had to take out this second mortgage in a falling market if the agents had priced this house to sell in the very beginning, they would have walked away with money in their pockets and a song in their hearts.

This is not the end of the story!

Now the seller thinks that all the agents do is to put her listing in the MSL. The logical thinking is, Gee, if that is all the agents do then I can do that myself. The seller pays a $395 fee to a company that places her listing on the MLS for her. This seller becomes a FSBO with still no idea of what to price her house to sell at. After about a month, another agent promises her the moon and talks her into listing her house again. This must have been his prospecting technique, to solicit the sellers who pay the MLS listing company to enter their listings on the MLS. Again, this agent, O.K. now, this is the third agent that has overpriced her house.

I want to have a word with these agents!

I just about had to pick myself off the floor after hearing this story. I had to pause just to regain my composure. This whole story was related to me over the phone. I could feel her distraught right through the phone.

They are the ones who should be paying her second mortgage payments! This is plain and simple irresponsible and totally uncalled for. Why are you taking listings that are not going to sell? Why are you not asking for price reductions after there are no lookers! This is over a 2 year period of time!

The seller knows the only recourse now is either foreclosure or doing a short sale.The reason she has to do the short sale is because the agents did not list her house at a price that it would sell. She watched as houses around her sold and hers did not. There is nothing wrong with the condition of her house. It was the pricing. If we had the listing in the first place the house would have been priced to sell and she would be walking away with cash in her pocket 2 years ago!

She Googles our keywords for Short Sales and we are all over page one. The seller reads our articles on short sales and calls us. We took her listing over the phone and priced it correctly to sell quickly. Low enough that the buyers will come and reasonable enough the BPO the lender will order will come in very close to what we have it listed for.

Sellers: Beware of agents who hang their reputation on their sales when the sun was shining and the market was hot. Make sure to choose an agent who has weathered all the real estate climates and knows how to handle the storm of a falling market.

Agents: Please do not take overpriced listings. You may just be contributing to damaged goods. Remember, these are human being and there are human consequences to your actions. Please govern yourselves accordingly.

_________________________________________________________________________________________________________________________

Contact Nestor Gasset and Katerina Gasset, CIPS, Realtors®, International Properties and Investments, Inc. Licensed Realtors® in Florida at 561-753-0135 to list your property for sale or to purchase a property in Wellington, Royal Palm Beach, Loxahatchee, Lake Worth, Hypoluxo Island, Lantana, West Palm Beach and the rest of Palm Beach County Florida. We are accepting referrals.

Copyright © 2008 By Katerina Gasset, All Rights Reserved. *Beware of Damaged Goods! The Human Consequences of Taking Overpriced Listings* Contact Katerina Gasset for Customized Business and Personal Coaching.

Visit our profile to find out more about our services. Call us today at 561.753.0135 or Toll Free 800.444.3316. Contact us by email if you prefer by clicking on email me on the right side of this page under our profile.

To view all the Wellington Florida Luxury Homes For Sale Click here and then click on Multiple Listing Search where the globe is on the right side of the screen that opens up. We know Palm Beach County and will help you get your home Sold if you need to Sell your home and help you buy your Wellington Home or Land ; call us today.

Disclaimer:The information provided herein is supplied by several sources and is subject to change without notice. Wellington Homes Blog does not guarantee or is any way responsible for its accuracy, and provides said information without warranties of any kind, either express or implied. Entries on Wellington Homes Blog represent the opinions and ideas of the author(s). Wellington Homes Blog does not express the views of International Properties and Investments, Inc or those of the broker.

P.S. If you are listing your home as a short sale in Palm Beach County Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 561-753-0135 to find out more about Palm Beach County Short Sales.

Posted by Nestor & Katerina Gasset Realtors® Wellington Florida Luxury Homes on 02/26/2008 12:43 PM

Comments (142)

palm beach county short sales, short sales, wellington florida short sales, overpriced listings consequenses

Originally posted at: South Florida Real Estate and...: Beware Of Damaged Goods! *The Human Consequences Of Taking Overpriced Listings*

This post has been included in Florida Information Palm Beach County, FL Information

142 Comments on Beware Of Damaged Goods! *The Human Consequences Of Taking Overpriced Listings*

FEB

2008

That's such a shame. I truly believe the incompetent agents should be subject to a public flogging. To compound a sellers financial problems is unforgivable, in my opinion.

Katerina, WOW! Hopefully we will see less and less of these type individuals in both Real Estate and Mortgages.

I think it is only a matter of time before a homeowner sues an agent for overpricing!

Katerina--I agree that the agents who did this to them should be the ones paying the mortgage until this home sells! To have had the home listed during the best of times in this market and NOT be able to sell it, simply because it was overpriced is disgusting! Also, you wonder if an agent is making their money by only listing homes in MLS for a small fee, how thorough are their comparables--what incentive do they even have to price it right? They've done what they were paid to do--spend an hour with the client, spend an hour on the computer putting the listing in MLS and they've only got to change the status twice (pending, sold--if that ever happens) and voila, they've made their $500. and are moving on to scam another Seller! May these fly-by-night agents fly away during this period of 'correction!' Okay, I'll get off of my soapbox now!!

May the market waves wash these foolish and lazy licensees out to sea. The only bright spot to the recent crisis is that those folks in the industry left will serve their clientele (hopefully) with a long memory of how NOT to list and sell.

It is amazing how many of these stories come up about agents who don't understand pricing strategies or keep in touch with their clients. I may be a "newer" agent but I have weathered many a storm in real estate and know that when it comes to advising my clients about today's market conditions and pricing their home to sell that I have the knowledge and education to do it.

What is so disheartening is when an agent uses this as a strategy to get the listing when they know the seller is interviewing multiple parties. Unfortunately it is human nature to want to believe the highest number is the right number. Of course thats rarely the case. Thye take the listing at a high number knowing the home owner has to sell, tie them into a long term contract and then badger them for reductions until it finally sells - Totally unprofessional!

Somewhere I seem to recall that there is something in the COE about this matter??? I wonder how many agents, if they are REALTORS, actually read the COE.

Pricing properties take training and experience. Many agents never learn the skill.

Katerina~This is absolutely heartbreaking to the seller(s) across the board. I have lost listing's (plural) to agents that came in so overpriced on their presentation and the seller's were persistent that this agent knew exactly what they were talking about. So far my comps have been right on and when giving a presentation I hold strong to that knowledge because it's not at all worth it in the end to give people false hopes and the possibility of losing their home.

Katerina, What a sad, sad story. I am glad they contacted you and Nestor and are now in good hands but what are these other people thinking of? This can happen in ANY business, you pay a professional to help you and they don't really care about you--how sad.

Katrina, This post really hits home for me. I do not overprice listings and I do not take overprices listings as I will not be able to service the client at that price. Another agent and myself were looking through listings in our MLS and found one agent who consistently "buys" her listings by pricing them high. Guess how many of her listings have sold over the past few several months. Yes ZERO. I happened to get a call from one of her expireds and I relisted and sold the home. The unfortunate thing is that if the original listing price had been correct, the seller would have pocketed about $14,000 more! Instead, the seller continued to pay his mortgage and then had to take the first decent offer that came along because he needed to get rid of the property.

There is a human side to the action of overpricing a listing and many times it is the second or third or fourth agents who have the conscious about it and feel bad. I found myself apologizing for not selling their home at a higher price while they were happy just to have it sold.

Some people are just bad realtors and that is why we have to work so hard in damage control to fix our reputation...It is a shame but you claimed the glory in the end and fixed it.

I'm glad they finally found you! I believe in the saying "always treat others as you'd like to be treated". I'm glad you were there to help them.

This is a good reminder, as I head out to take a listing this afternoon. I recommended a price at my listing presentation, they have since spoken to some other agents, and they told me yesterday (when they called to say they're listing with me) that they want to list at the higher price and a lower commission. AND they want open houses. I'm flattered they want to list with me, but why - if they're going to follow the advice of someone they did NOT choose. Anyway, your post is a timely reminder, as I get ready to walk out the door to the appointment.

Katerina, This post pisses me off just reading it!! This is the dark side of being an expired expert. We have to clean up the messes of REALTORS(R) that don't have a clue. It's very frustrating when we are finally called and are put in the position of needing to bail folks out who should not be having these issues to begin with.

Personally I think Brokers should approve all listings until that agent has proven themselves. Overpricing is like a desease in the market place. It creates a back log of inventory and ruins peoples lives.

I hope you are able to get them through this.

Sad story...but...one thing I wonder? Was there an appraisal done before her second mortgage? I wonder how the subsequent listing prices compared to the appraised value for her second mortgage.

I was surprised to see just how many expired and withdrawn listings we have in the area I was making showing appointments....and why? Because of 110k over market listing prices....and no matter how often they brought it down...it was too late trying to chase down the price...old listing...no interest.

What a sad story and I'm sorry to say there is no happy ending. Agents should take this post to heart and realize how they can impact the livelyhood of a seller if their property is overpriced.

wow, that poor lady.

You know these agents were trying to take advantage of the seller because every class I've been to talks about not overpricing properties and the seller will end up getting less when all is said and done. Brokers should even have an office policy stating that no home should be priced over market value.

Katerina, I know an agent who will list anything for any price. He charges very little because he collects an up front fee. Just the other day, he was pitching a new listing to me by telling me it was priced way too high, but did he care? I kid you not, those were his words! I would never trust an agent or any business person whose compensation was not tied to performance in some manner or another. You are right, there is no room for overpricing in this business.

What a sad story--I totally concur that hopefully, that agent will not continue in the business.l

Katerina- This post really irks me. I can't believe those other agents acted so irresponsibly...well, I can believe it and that makes me even madder. I too hope that those agents are no longer in our field. They devalue us all.

It is the incompetence of some that makes it hard on the rest of us! I see this all the time and it's a shame first the seller needs to sell but is not willing to do whatever it takes to sell in order to avoid foreclosure. Second, it's an even worse shame that agents are NOT DOING THEIR JOB TO REPRESENT THE BEST INTERESTS OF THEIR CLIENTS! What part of that is so hard to understand for some agents? What's the point in listing a house if it will never sell or be shown? It is our duty to be honest and upfront with sellers to keep this kind of situation from ever getting to the point it did.

As many others have commented, a lot of these agents will not be around too much longer and the ones of us that have "weathered the storm" will be there to take care of the abused.

Nice article...Let's sell the house not list it!

Didn't the agent need the sale of her house to make his/her commission? this is really strange

Katerina - sad story indeed. As an agent, I have to wonder about so many things. I understand that many consumers rely on the agent/broker to guide them, obviously. But, after going through three agents and not having success, surely there had to be some doubt or question in regards to what is happening. Did you ever ask your 'now' client if they had ever been suggested to have an appraisal done or considered getting one when they opted to use the MLS only company.

Debbie - Those MLS companies make bank and to be honest do nothing. I have seen those companies in our MLS and if you visit their website, they have a huge inventory. They offer 'BARE BONES' for input on the MLS, no description at all, many have no directions to the homes as a lot of this is done via fax or online. The additonal services are 'extras' and the client who hires such companies have to pay for everything like a la carte!! Not the way to go, you do get what you pay for, NOTHING, IMO.

Great awareness post for consumers. I hope it works out and you get this home sold for your seller. Much luck.

Great post about pricing correctly. I personally don't list them if the sellers aren't motivated to sell. This is sad that they were motivated to sell.

This is a sad and embarrassing story. You wish we had some kind of recourse for egregious behavior !

Great Post ! Sellers know that if they talk to enough agents, sooner or later someone will list the home at what the seller price they want it listed, then 6 months later it's the Realtors fault it did not sell... 3 years later the house is on the market and now it is lower in price then it should of been 3 years ago...

Please tell me this agent is one of those agents who did not pay her dues for 2008 and is out of business!

I was thinking the same thing! Leave the business to the professionals!

As someone said, "It's the Wal-Mart principle...if it does not sell, either reduce the price or take it off the counter." Great post...over price it and you will wind up under selling it...!

Sad but I have to wonder why she didn`t get one of the agents that were selling in her neiborhood?

Fairbanks, Alaska Realtors ~ Jesse & Kathy Clifton ~

Jesse and Kathy,

Thanks for your support, I agree with you, just take them out and hang them up to dry:)

Matthew J Blum - MyFavoriteMortgage.net

Matthew- Thanks for reading and I agree, get them out of here!

Bradenton Florida Real Estate - Dan Forbes REALTOR®

Dan- While I don't believe in so many lawsuits I do understand why a seller who is suffers damages would consider action.

Katerina -what is surprising to me that it's not just unexperienced/new agents who succumb to the overpricing -I see it on all levels. There is no justification for overpricing by any agent, and especially by experienced agents with a lot of business.

Debe Maxwell

Debe- What is worse, is ALL 3 of these agents were full service and full fee agents. They even offered selling agent trips to tropical places, but that does not matter if the price is too high, because if you don't have a buyer you don't get the trip!

Andrew J. Lenza (ABR*GRI*MBA) Monmouth County NJ Real Estate Broker

Andrew- So nice to see you on my blog. You are a great writer and I admire your writing style so it is an honor that you would take the time to read and comment on my blog! :)

Nestor and Katerine, this is advice we must all take to heart. Throwing darts seems to be easy for some agents. Anything to get the listing.

I don't feel this is right for the seller if they really want and need to sell. I have run across people that cross their arms, scowl and tell me that they don't have to sell and if they don't get their price they'll just sit on it.

Eventually it seems they will come down to earth.

This makes me ill that this little lady fell into the clutches of lazy and greedy or just stupid agents.

Go sell it! I know you will. Later in the rain~Deb

Your heart just drops when you hear stories like this. It would be nice if the original agent she used is a past agent; our entire industry's reputation is at stake and these people are why we get the bum rap. Glad you could help them.

wow, scary stuff. Big shakeout already in our MLS, 900 agents and counting didn't renew out of about 6,000.

Wow! This was not only wonderfully written but it blew me away. I think at one time or another we have all taken an overpriced listed, thinking we can get the seller to be reasonable after a certain amount of time passes with no offers. But this is usually only when a seller insists on a higher price.

This story moves to the top of the list for the stupidity and laziness of some agents. The seller calling to ask if THEY can Have a price reduction. Give me a break.

This is happening more often then not. I'm about to put a 4 plex on the market and our first order of business is to price it right.

I love your post. WOW... It's so sad for the seller, not knowing cost him and the agent got away with it.

I had a similar experience and I tried to educate the seller,but he wanted to walk away with more than what he could get for it. I tried to tell him what he could get for his home so he wont be late on his mortgage again. He just couldn't believe the price after listing it for so long.He had to do a short sale on the property.

What could we do to help those sellers... I think your so RIGHT... if we PRICE it right the first time it will SELL....

So very true and coming from the lender side of things, banks are doing their due diligence and cutting the appraisals if they are deemed too high, not just on refinances but purchases as well!!

With the market being in the state that its in, banks are in protection mode and not going to be lending on property that is too overpriced!

Yesterdays high expectations are dashed on the todays stone reality,

The Greater Manchester Board of Realtors just put on a special education program for DR's to go over these very important points about pricing in the current market! It was very well received. We also covered the other end of the spectrum with regard to educating buyers and not taking on buyers who are unrealistic. We are planning to have additional educational programs -- This is what makes us professionals! Great blog - very timely and very important.

OH brother... this is tragic, but it happens especially in companies that don't pay their own advertising, no sweat or money out of their pockets, right? Yep, I hope they didn't renew either, why did they choose that one?

Cindy Jones-Offering Real Estate Service for the 21st Century in Northern VA

Cindy- Thank you for your insight. I appreciate it very much. You show that you are a good agent when you take the time to educate yourself and keep informed in our marketplace.

Sellers need to do their home work too. The consumer needs to take some ownership. When they are hurt by mortgage lenders, agents, anyone else preying on people or incompetent, the consumer owns a part.

What a terrible shame. Your blog entry is stunning reminder of what WILL happen if you don't price a home to current market value. I have an appointment on Friday with homeowners who are under the impression that their home is worth much more than my preliminary research shows. THEY ARE WILLING TO TAKE A BRIDGE LOAN TO BUY THEIR NEXT HOME? Now what would happen to THEM if they fall into the hands of a meathead agent? Hopefully (more for them than for me), they'll listen carefully to what I have to say (and show them).

This is an awful story - I feel so bad for the victims, but I have to thin it's an anomaly. I can think of one agent who'd do that. Let's not spread the worst fears of our industry. Let's tell people what the best of us do rather than what the worst of us do.

Bill Gassett Metrowest Massachusetts Real Estate

Bill- The worst part is that these sellers wanted to sell and wanted to have their house at the right price! They even asked the agents to drop the price, the agents had no clue! It was worse than pricing high to then get the reduction. The reduction was always there, the agent did not do this seller a service.

Homefinders, Real Estate in MD & VA, Lenn Harley, Broker, New & Resale Homes

Lenn- Thanks for your support Lenn! I don't know where they got their license!

Katerina! Wow sad story GREAT post. Its amazing how people think our job is so easy. If you are a professional you will guide your client through the process, if I am unfamiliar with an area I seek the help of a fellow agent and asked them to co-list and work the property with me and the seller. When in doubt ASK questions.

Julie Neerings

Julie- Thanks for your comment. Read Broker Bryant's new post about what to do after you lose the listing. You don't want them the first time around anyways! They will sell the second or third agent around.

Carole Provenzale Owner, Feng Shui Long Island

Carole- Yes, this happens in every business. I just don't want it to happen on my watch.

Katerina- What a great article. I am so proud to be a REALTOR and extremely ashamed of those who do not conduct themselves in accordance with the Code of Ethics or even in a professional manner. I have heard a similar story and the one question I always ask is, "Where is the broker?" Ultimately the broker must sign off on all listing agreements. However, that does not excuse the blantent ignorance of those incompetent REALTORS. By your story it is very apparent that the REALTORS were more concerned about the bottom line instead of what was in the best interest of the seller. I also hope that all of they have not renewed their license they are truly a disgrace to this profession.

Kim Peasley-Parker

Kim- Yes, it is quite sad. The seller would price it right if the agent would be honest and insist on pricing it right. If agents would stop taking overpriced listings there would be less on the market, too.

It's scary how many homeowners think one realtor is as good as another. The wierd part is, why were those realtors were not anxious to get paid a commission? Guess they wanted the listing but didn't want the tough conversation about price or even worse, didn't know their pricing was off?

Mary Thomas

Mary- Thanks for commenting. I am sad that this happened and glad that we can find a resolution.

Great post Katerina. i just showed it to one of my collegues who lost a listing that the seller wanted her home to be listed for 89K above agents recommended listing price. Sure enough it was listed today with another agent who took the listing at at Sellers price.

April Hayden-Munson Realtor, SE Wisconsin

April- Thank you so much! I am glad that we are going to be able to help her.

wow. Great post. I just got off the phone with a client in close to a short sale situation who has listed with 3 other agents already and could have sold for at least $25K more than probably we can get now, but none of those agents were honest with her. The great thing is that she contacted me after reading my blog here on AR, probably using google for short sale. I took a vow last year to NEVER take an overpriced listing again without a clear plan to adjust price. I'd rather walk away.

Margaret Woda, Maryland REALTOR

No seller is going to dictate to me what I am to do to market their home. If they want open houses, I will refer them to someone who does do them. If they want print ads I will refer them to a top agent who does do them. I don't do them and don't make exceptions. But I do get a 25% referral fee from our fellow top agents in Re/Max and Keller Williams in our area when we are not a good fit. Life is too short, let's have fun! Get your listing on your terms! If they overprice with someone else, put them in your data base and send them just sold cards etc and when their listings expires, they will call you! Then they will be ready to list with you. Read BB's new post.

Bryant Tutas, Broker-REALTOR(R) Tutas Towne Realty, Inc

The first agent puts this house at 415k when all around in 2006 were selling for 365K! Then they added on a trip to the Bahamas to the selling agent! What good is that to a selling agent who can't find a buyer because the house is over priced by that much! It was absolutely disgusting! They did nothing to sell that house, no marketing, nada!

The worst part is that these sellers were WILLING to list at whatever price the agent said in order to sell and they could not even do that for her. SHE WAS CALLING THEM TO GET A PRICE REDUCTION!

Alisa Ottaviano- Certified Res. Appraiser

Alisa- There was no appraisal ordered, it was a home equity line with just a look up on the computer to see the value estimation.

Sad story. There seem to be so many of these type of stories surfacing. Thank god she found you!

I never thought of it the way that you layed it out, but, I have always just passed if the owners would not price right.

Celeste "Sally" Cheeseman (RA) Century 21 Liberty Homes *Hawaii*

Sally- People don't understand about how the listings get stale. Once the agents know it is overpriced they are not going to show it! Thanks for your comment! bignay

How wonderful that you were able to help this lady. Very important info to have, thanks for posting.

Thank you for bringing this to peoples attention. There are so many uneducated real estate agents out there. The bright side of this is, the educated ones stand out so much more in a challenging market like we are experiencing now!

Wow, that is so sad. Those agents are most likely out of business now, or at least I hope!

Funny, I spent the evening in a continuing ed class on just this subject. It is really tough to help these people after being on the market so long. I have two that I must go back and talk to tomorrow. If they can't see the reasons their home is not selling, I will have to cancel the listing.

what a shame - I hope this saves a seller heart ache or teaches an agent what some of their responsibility is.... best of luck

SAD. DISGRACEFUL. What else is there to say. That is terrible. Again - another example of agents who should not be in business.

I think too many agents don't understand that they can do real damage by not being honest with sellers about the price of their homes. I let sellers make the decision of what price to list at, but I won't accept the listing if the price is too high.

Katerina, That is said. Integrity should be the key to longevity in this business. Intregity does involve telling people the real deal, even when they would be happier with the sugar coated version. Tell enough sugary tales and the cavities will turn into root canals. Like in the case of your client. Best of luck. I am sure that you are servicing her to the best of your abilities.

Petra Norris, Broker, REALTOR®, Lakeland, FL

Petra- That is why I posted this story, so we all can learn from this tragedy.

Jessica Curtis

Jessica- Thanks for commenting.

Gay Beck

Gay- I don't think that the agents were taking advantage, more like they did not know what they were doing. Because even when the seller called to lower the price, they said, how much!

Paul Slaybaugh, Scottsdale AZ Real Estate

Paul- Thank you for sharing your story! I would not want to meet him, I would not be as nice as you!

This is a very sad story for the seller. And it is pathetic for the agents who helped to get here where she is today. May you be able to help her.

Hi Katerina....There are Hundreds of those Realtors out there. I'm not sure if they really know how to price a home or they just are trying to get the listing by BSing the Seller to beat out other Realtors. I tried it ONCE, and that Seller said "aren't you too high?" I never played that game again.

I always say to Sellers Pricing is the single most important thing to have right..if there are no showing in the first week, Get the Price Down, never mind in 30 days. All Buyers are comparative shoppers, they know when a house is way Over priced, and they do not bother looking at it.

Great post, Sad story about your Clients.

Diane Bell, Hilton Head Real Estate, Bluffton

I sure hope not!

Matt Moxhay Moorestown Real Estate

Matt- Thanks for commenting. Yes, I hope they are long gone now!

Hi Katerina...I wanted to Ask Is that You with the Gun? Great Graphic. Love It!

Steve Rider

Steve- I do not understand the motive here either. The saddest part is that these sellers were willing to list the house at whatever price the agent said in order to get it sold quickly. SO where these agents thinking? This was a golden seller.

Patrick Gahagan

Patrick- I like your slogan! Let's sell the house, not list it.

Fred Carver,Victoria BC Realtor

Fred- I like that graphic too! From iclip. Yep, that is me with the gun,a rootin' tootin' cowgirl there! :)

FEB

2008

yes, it can be bad and we are trying to sell homes.

I took one overpriced listing one time with the understanding that the client would adjust the price to meet the market demand. We ended up lowering the price by $150,000 over a 7 month period (she extended her listing with me after six months) and it sold, but we were chasing a declining market. I haven't taken an overrpriced listing before or since. I probably only took it that time because the client was so willing to look at the facts and revisit the comparables to adjust her price. I have a very dear friend who has been asking me to take on her overpriced listing for three years now. I just won't do that any more. It is wrong from a moral, ethical, and business standpoint to take overpriced listings.

Spokane Real Estate - Ross Quintana

Ross- We are selling homes. It is just too bad our seller had to take out a second mortgage when instead she could have sold her house.

What a sad story. It does go both ways, however! I begged and begged and begged a seller to reduce their price to reality...all they way to a short sale, begged some more, they even rejected offers while in a short sale situation....boggles my mind. I told them this was heading to foreclosure and they said they didn't care!!!! Amazing.

I feel for your clients who were poorly advised. Hopefully that agent is not practicing any longer!

Jason Grams

Jason, yes, it goes both ways. What difference is it to the seller what the offer is on a short sale, he is not going to make any money on the deal, it is still better usually, than foreclosure.

Katerina, I have been showing some REO properties recently. The current listing in the MLS does not have a photo a lot of the time. I have been looking at the history to see if previous listings have photos and I have seen many that have been listed several times over the last couple years and your story is probably theirs. It's really sad.

Doreen McPherson ~ Phoenix Arizona Real Estate

Doreen, could be, but I do not wish to believe that there could be that many irresponsible agents out there. It is one thing when the seller refuses to budge off price, quite another when the seller wants to list it at a price that will sell, yet the agents don't do that for her.

Gilbert Arizona Real Estate - Candace Robinson

Appraisals to establish value prior to a buyer's lender needing one are very rare indeed down here. This would not be something that she could use to establish value as buyers rarely care about an appraisal, they care more about market value. As the market was sliding in 2006; an appraisal would be outdated in just a couple of months and therefore would not be something I would recommend.

The post would go on too long if I explained it all in the post. I also do not anyone to be able to pinpoint her out. She reduced the price when she FSBO's in the MLS,she looked at the comps she could find, but had no idea as to what you deduct or add to the comparables. It was only on as a FSBO when another agent solicited her and what did he do, he raised the price.

Melina Tomson Salem Oregon Real Estate Consultant

Melina- That is the sad part, a motivated seller with unmotivated agents.

Christine Bell, CRMS

Christine- I normally would agree all the way with you and ultimately every single thing that happens to us we attract to us and must accept responsibility for.

However, this seller asked the agents to reduce the price. She did the best she could to find comps but did not know how to do that. After all, that is what they hire us for. OR else why would they need us to establish value? Her ownership in this is that she is too trusting and not assertive enough to stand to her defense to insist someone perform. But I still think these agents are the culprits here. It is not often I say something like that.

Bill Gillhespy Fort Myers Beach Realtor

Bill, yes it is and one that I hope agents will take to heart and learn from.

Nestor and Katerina, thanks for the post, I too am appalled! That is terrible. I agree with the thought that the 3 agents should be paying the mortgage payments. Thanks for sharing and reminding us that it is important to keep on top of things. Good post.

I'm turning down more and more..I gave up wasting my money and time if there is no way to sell it. I feel we are going out on a limb by taking it wasting our time..the sellers time and then having them not to renew or fire you...then the next agent has a better chance to sell it as the sellers get to the point after realizing they just wasted valuable time on the market.....they really need to accept the fact the 25% return days are gone. Do you want to sell it or own it?...thats what they need to decide

Tony & Darcy Cannon

Tony and Darcy - Thanks for your comment. I pray that we will be able help her in time.

Neal Bloom-Realtor ® Assoc.-CRS-Weston FL

Neal- We turn down listings too. Like you said, not worth not being able to sell it only to have the second or third agent sell it. That is why we love to be the second or third agent!

Joe Knows Southwest Florida. Fort Myers. Cape Coral.Bonita Springs

Joe- This was not the case here. This seller wanted to reduce her price, she just did not know what to list at and depended on her agents to tell her, after all, that is one of the reasons sellers hire agents, to establish price.

Chrystina Tovani - Sacramento, CA Realtor, e-PRO

Chrystina- Thank you for your comment on my post. I sure do appreciate you taking the time to comment. Make it a great day today!

Nathan Cook

Nathan- Thanks for stopping by and commenting. Overpricing is a shame.

Vickie Gambrell

Vickie- In this particular neighborhood there is not neighborhood specialist per say. She received a mailer from these agents soliciting in that neighborhood. And also, we know this should be a benefit, but we list properties out of neighborhoods we work in too. But we still can find the right price.

Faina Sechzer - Princeton, Montgomery, Hopewell, NJ Real Estate Expert

Faina- I agree. Thank you for commenting. Hope you are doing well. My prayers are with you always.

Kat, after all the posts of yours that I have read, I have to say that as one of your best to date. I do have some favorites, mainly because they meant so much to me and some of the answers I was seeking at the time. If I had had Active Rain, and you and the other wonderful contributors that post here in my corner I believe that I would have saved myself a ton of grief and money.

Look at my new post, when you get a chance...Keep on writng, you are an inspiration for many of us!

Mike Norvell Sr., Blount Land Development

Mike- I am busting my butt to get to all of the blogs I subscribe to and yours is one of them. I have been absolutely blessed with having a ton of business, busier than ever in income producing activities. So when I weigh what is most important to do first, it always is, to keep writing my posts for all of you that will help you in your business and life and of course the posts to benefit our sellers. This creates a slowdown in my returning and making comments. Which are a very important second.

Thank you so much for commenting and I so appreciate your compliment. Katerina

Hi Katerina - I so understand why this story upset you so much. It upsets me hearing that there are so many agents who are clueless, irresponsible, and/or don't care. We have some of them here, too. They want listings, so they'll tell sellers what they think sellers want to hear. Later, they don't have the guts to face the music and ask for the price reduction. Also, in the meantime, they don't have money for marketing, don't do the Internet (cause that's "black magic"), and all this while their sellers are trying to make ends meet, as per your example. I hope you list and sell every expired in your area and take care of your sellers, who cares about those other agents!

We are SUPPOSED TO BE the professionals here! When an agent does not do their job properly it makes all of us look bad! If you don't know how to do a CMA, take a class! Most boards offer them for FREE!

What a sad story. I have "lost" listings to other agents that "bought" the listing and told the sellers what they wanted to hear. They overprice the home and then go back to the sellers asking for price reductions. I've watched several of the listings reduce the price over time to what it should have been from day one. What the sellers don't realize is that the longer their home is on the market, the more likely they are to get a low ball offer.

Marzena Melby

Marzena- Yes, you are right, they don't have the guts to save face, they run from the sellers and make the rest of all look bad. I am amazed at the lack of professionalism I have run into, especially here in Florida.

Barbara-Jo & Bill - - Florida Realty Professional - AHWD

Barbara and Bill- That is correct! Go take a class!

Michelle Rottach St Charles county MO Real Estate

Michelle- Well, these sellers did realize this and that is why they had to call their own agents to tell them to reduce the price! I never heard of that!

Debra A. Brooks, Texas Waterfront Specialist

Debra- Thank you Debra! It is one thing when the seller does not want to price correctly, quite another when the seller does want to lower the price and the agents are so inept they don't know what to do!

Ed Vogt, Grandville, MI Audu Real Estate

Ed- Thanks for commenting and I do hope they are out of the business, there were so many that jumped in during our hot market that did not have a clue.

Keith Berne

Keith, I say good riddence! I will hold the door for you on your way out! That is not what we need in our business.

I once read somewhere that if priced correctly for the market, any property should sell in one month's time. If after a month, there have been no offers, then it's time to look at the price...great post!

I have a seller who has been holding steady at his price and has only had 4 showings in 6 months. I showed him the other day the markdowns that have been taken in the past week. There were 4 pages and this wasn't even including some areas and price ranges. He was stunned at how many markdowns there were that were $20k, $30k and even $40k!! I'm supposed to hear from him this week on what price he wants to go down to.

This is a bone of contention and i'm seeing several posts concerning this. People are getting desparate out here.

That ticks me off. Unimaginable. I'm always shocked to hear about agents who don't care about getting the job done for their clients.

Awwww...that poor lady. That is awful. Hopefully everything goes well and she finally sells her home before she has a foreclosure following her.

I am glad she found you!

Over half the agents in our area have been in the business less than 5 years - they've never had a tough market. Makes things very challenging...

Susan Mangigian

Susan- You got it! The difference is the seller wanted the reductions and the agents kept the price too high! It depends on the market too. We have taken some listings where we raised the price and sold the house, it can go both ways. Depends on the price range of the market.

FEB

2008

There is one good thing about the current market. Most realtors (or mortgage officers) who do not know what they are doing will not be able to survive. AJ

Overpriced listings are just a fact of the market. Any market, in any cycle. We just happen to notice them a lot more in a slow market. A slow market also has the effect of creating desperate agents. Desperate agents are more likely to take overpriced listings. So not only do we notice them more, there are more of them. There are two types of sellers who allow agents to overprice their homes:

Desperate: Those who are pinched by the numbers and can't possibly go any lower. They understand the reality, and are just hoping that lightning will strike before the inevitable financial collapse.

Dreamers: Those who will put their faith in the one agent out of five who tells them their home is worth 10% more than the identical one languishing on the market down the street.

Neither seller is really a seller at all. So when you lose that listing, try to remember that you haven't lost anything at all. That sign in the yard has the name of a fool and his phone number on it. Give that fool a call and have a laugh in about 5 months. Unfortunately for the seller, it's really not that funny.

What an awful 2 years this seller has been going through. I have spoken to a few sellers of FSBO's and some have told me that they simply do not trust real estate agents. These are the agents that give us all a bad name. When I go on a listing presentation, I show the comps to the sellers. This way they can see what the market is like for their home. I suggest, they decide. Plus, I keep in touch at least once a week with updates.

Katerina~

This post makes me smile...not because it is on a "light" subject...but because it is so timelyfor the Brokers at our Firm ...at our staff meeting this week, we grappled with this exact problem. A new agent apparently has gone around promising big-$$$-results for homeowners in a particular neighborhood who are dreaming of selling at large profit margins......and now this new agent has acquired a huge batch of listings...none of them priced according to the market...but well above it. Your post and the comments that follow it = just what we needed. THX!

Dan Sullivan

Dan- You wrote a great commentary here and I totally agree. We take pride in walking away from overpriced listings. However, that is not what this post was about.

This post is about a seller who we now have to do a short sale for that hired 3 different agents who overpriced her home. She did not have the knowledge to know that.

This seller is the one that called her agents and was asking THEM to lower the price of HER house! She was calling them! They were not calling her.

This seller was neither a dreamer or desperate. She did not know what the correct price was and depended on her agent to give her that price. She did not choose the agent who priced it the highest. Katerina

CAMERON WILSON ~ MURRIETA / TEMECULA / MENIFEE CA. ~ REAL ESTATE

Cameron- My sentiments exactly!

Robert L. Brown~Grand Rapids Real Estate Flexit Realty, West Michigan

Robert- Thanks for your comment. You are right, need to price it right from the get go.

Really like the Blog!

There more bad agents out there then we think, everything is so cut throat. I have been thrown under the bus by several agents and lenders.

Now, I trust no one only myself, my wife and my parents. There needs to be more exposer on bad agents, if you have more information, Blog it. I would love to read it.

Robert Swetz

www.swetzsellsvegas.com

FEB

2008

This is not a numbers game. This is people's lives that we are dealing with. Tell them the true. They may not like the true, but they will thank you later.

MAR

2008

I have lost several listings because I do not overprice, another agent comes along and buys the listing by overpricing, only to have it sit on the market forever and expire all over again. I have also picked up listings from people who went that route because one of us recontacts each other. One agent here, who guarantees he'll buy your home if he doesn't sell it, has more expired listings than anyone because he consistently overprices. It's agents like you described, Katerina, who give those of us who are honest bad reputations and have had people sour on working with realtors altogether.

I am a relatively newbie and have just subscribed to you blogs. I love this one and totally agree with all you are saying. I have been a full-time Realtor in northern Michigan going into my 19th year and our market is very slow especially this time of year not to mention the lousy market. However, I am here to stay. Especially now under our current conditions why anyone would take an over priced listing never ceases to amaze me. Luckily a lot of them dropped out of the business by November 07. Thanks for your info. I am not so an old dog and I love to learn more tricks.

DEC

It is funny how many agents "buy" the listing by coming in with a very high CMA price, usually using the most expensive sale they can find even if it is not truly comparable.

Several times I have lost listings to these charlatans only to receive a call from the same seller a year or two later saying they are now down to the price that I had originally recommended and they now want to list with me.

The only problem I tell them is that the price I gave back then was what I could sell it for then. Since we are in a declining market their pricing will have to be even lower. I do a new CMA and give them the new value. Some list with me and some are appalled by how low a value I give them. Often those that will not list at the proper value or have agents promise them how they can get them so much more for them and list with them are the same folks that now have their home on the market as a short sale or one that has been forclosed on.

Jeff- Yes, we see this all the time. Agents trying to sell the house for what the sellers owe on it so it won't be a short sale but fail to realize that no one is going to buy a house just so you can pay what you owe. They will only pay market value. We just got an REO where the seller tried to sell their unit for 315K which is what they owed for over 2 years! Well, the market value is only 199K! So who is going to buy that unit! Katerina

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