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What Sellers Really Want is to be Lied To...

...at least this is what I am finding out, and I don't understand why.

A few weeks ago I went on a listing appointment. I had already walked through the home, so I knew what needed to happen in order for the home to sell quickly. The owners asked me to be very honest about the condition of their home, and wanted me to be brutally honest. I don't sugar coat listings, so being completely upfront and blunt about their home was not a problem for me.

During the appointment, they wrote down all the things that needed to change to get top dollar for their home. Here are a few things I saw:

the fruit wallpaper in the kitchen had to go - replacing with neutral color paint updates the home and make it look more modern
the ceiling fan in the kitchen had to go - ceiling fans not only distract buyers when looking at a kitchen, they are usually ugly, and dated. No one puts ceiling fans in kitchens anymore, and buyers hate them.
the carpet needed to be replaced - the new carpet they told me about over the phone was in fact 10 years old and hadn't been cleaned in 10 years
the home needed to be painted inside and all child damages to walls fixed
the aromatherapy scent had to go

The sellers believed their home was a certain price, in its current condition. I told them that their home would not reach that price unless they changed the things I mentioned.They were comparing their home to other homes, that no appraiser would use as comparables. While the price that I told them to list at was $10,000 below what they had hoped, they said they understood and would fix the items on the list. Before the seller left, he asked me if it would be possible to list higher. I told him he could do anything he wants, but that I would be coming back to him in a month for a price reduction.

I thought things went well, but when a week passed of no returned phone calls or emails, I knew something was up. Finally I got the call that they were hiring another real estate agent to represent them. Through sources, I found out that the husband was offended and thought I had told him his home was crap.( If memory serves me right, he told me he wanted me to be brutally honest.) I also found out that the agent walked through his home, telling him:

his home was beautiful and not a thing needed to be changed
his home was worth $10,000 more than I told him - the magic number he wanted to hear

I guess what he really wanted was for me to lie to him, and give him a lot of fluff. Sorry, but that is just not my style. See, I believe that if you really want to sell your home, then you need to do things to set your home apart from all the other junk out there. Trust me, there are so many homes on the market that are average, that buyers find it hard to choose. So the only solution is to make your home look as good as it can. Painting is one of the cheapest ways to add value to your home. Removing anything that dates your home, like tacky wallpaper, or gold colored light fixtures, is a good thing, and relatively cheap to fix, too.

There are also a lot of desperate agents out there that will tell a seller anything they want to hear, just to get the listing. These are the mediocre agents that plague our industry. They will take an overpriced listing knowing full well that in a month, they will be asking for a price reduction. My question is, if the first month of a new listing is the most crucial time of the entire listing, why would you start by overpricing it?

Buyers, and their agents, KNOW when a home is overpriced, and instead of taking a look at it, they will pass it buy. Like I said, there are just too many homes for sale in the Twin Cities to choose from, so the easiest way to eliminate homes is to throw out those that are overpriced. Bottom line, if you want to be lied to, at least admit it to yourself before the listing appointment. And if you let the agent know as well, then you may not waste their time, by having unrealistic expectations.

Posted by Jennifer Kirby, the Luxury Agent on 02/26/2008 12:19 PM

Comments (104)

selling process, tips

Originally posted at: The Minneapolis Real Estate Blog: What Sellers Really Want is to be Lied To...

This post has been included in Minnesota Information Hennepin County, MN Information Minneapolis, MN Information

104 Comments on What Sellers Really Want is to be Lied To...

FEB

2008

Thank you for sharing your experience. I've been in similar situations and most of the time glad not to have taken an over-priced listing. Some people just don't make sense!

I feel your pain! I just wrote a post called, "Is Honestly Always The Best Policy" on this exact topic. If you get a chance, check it out.

I'm still up in the air about taking a listing that I think is over-priced. Some of the people who commented on my post said, "Get the listing and come back later for the reduction". In my experience, short of getting it in writing from the seller, they tend to forget this part of the conversation.

Hopefully, you're being honest and forthright with these folks will be rewarded at some point in the future.

Bob Mitchell

ValueList Real Estate Services, Inc.

I would rather have someone tell it like it is because otherwise they will be stuck in that home longer than expected like you said.

Homeowners love their homes. It is not only their personal and usually greatest investment, but also it is the place where they surround themselves for comfort. I don't think homeowners want to be lied to;however, homeowners who have an unrealistic view of their home have a tendency to be in shock when told their place is anything but perfect because to them it is. They are able to look over the flaws because they have lived with them and consider them no big deal. Of course, we know the consumer doesn't look at things the same way.

I totally agree that a home needs to be priced correctly to sell in the very first place. Where I think these homeowners lied was in being brutally honest. They want you to be honest but need you to do it in such a way that gently leads them to the same conclusions. When all is said and done, what they want to hear is that you believe in their home. They do want to hear that you like the home, but possibly some things need to be changed in order to sell their home quickly. It is a fine line to walk on. I much prefer working with clients who are completely realistic about their home, but how many of those are around?

Jennifer - I would rather walk away from an overprice listing, then waste the marketing dollars on something that won't sell

Bob- yes, I too have a hard time letting go. But I find that most sellers refuse to reduce until the third month. There were some other things that turned me off to this seller, which in reality cleared my conscience about not being disappointed that another agent got the listing.

Naoma - and not to mention the extra mortgage payments they will be making by having the home sit on the market longer.

Maria - yes, there is a fine line to walk in order not to hurt their feelings. I don't make it sound negative, but instead point out the positives by fixing certain things. But then again, no matter how you deliver it, it still might be hurting someone's feelings, and for that, I have no solution.

We go through the same issues with the mortgage application process. It's always best to be completely honest and do business with customers who appreciate your expertise. Best of luck in the future!!

Regardless of what they say, buyers want to hear what they WANT to hear. They want to hear that their home is worth $10,000 more. They want to hear that there is not much work to do. They want to hear the house will sell at break neck speed. The problem is with the real estate agents who are too weak or inexperienced to tell them what they NEED to hear. If all of the agents out there had integrity and honesty. We would be competing based on our abilities to sell home and not our tolerance for over-pricing them.

Jennifer...I agre totally with you although I think more and more sellers are seeing the light. I the bustling market everyone thought their home was a palace. I have walked away from many a listing for that same reason. Keep up the good work, and we will bring this industry back in line.

It always amazes me when you here stories like yours, why do people say they want an honest opinion? The bottom line is they want there price with the home as is. When there home doesn't sell, they may realize you were right,

I believe it is best to be honest with them. I tell sellers little stories about past experiences with homes that are a little outdated. (what kind of price reductions and decorating allowances were needed to sell). Chances are they've been watching the shows on cable TV showing everyone how to fix up their home to sell it. Refer to those. I tell them that wallpaper is the "kiss of death" and how buyers I work with won't even look at a home with wallpaper in it. It usually works - they decide on their own which items to fix and the wallpaper goes.

Perhaps part of the focus should be taken away from the selling price and focused on the value added services you could bring. While I understand the seller wanting top dollar, they may re-think that with more information (which you may already provide) ie. competitively priced getting ompetitive offers vs. reducing in a month and then getting even less because now you need a buyer and are more willing to look at lower offers. Your marketing plan. Your experience, knowledge, etc.

Too often I hear what you are saying and the seller somehow needs to understand that you are the professional and that there are professionals that will tell them what they want to hear but deliver something else. When will the seller or buyer ever learn that if it sounds too good to be true, it is?

If you had $100 for every time a seller or buyer wanted the truth, I keep hearing that line "YOU CANT HANDLE THE TRUTH".

I've experienced this myself, and know how you feel. If the property doesn't sell, perhaps the owner will call you in the future - I've had that happen, too.

Real Estate is like walking a tightrope with these sellers. It is really a matter of odds for them to like you sometimes and we can;t get them all sometimes it is just what it is and the agent who does take the lisitng over priced will have her hands full. Maybe re-listed with you if you go back and ask them what you can do better next time, and ask for their critic...

I also feel your pain. I "lost" a listing about 2 weeks ago from a seller who wanted about $50,000 or so more than the other 7 homes selling in the area. I politely refused to take it at that price, thanked him for his time and left. He listed it with another agent for $65,000 more than what I would have. I guess some agents really are desperate.

Wow, I go away for an hour and look at this, a feature...go figure...

William - yes, not every seller thinks or acts like this. Out of my last five listing appointments, this was one case. Another home owner just wanted to list high and see what happened. I didn't get the listing, but another agent, priced $20,000 over my suggestion, got the listing. Three months later, the home is still sitting there, overpriced.

Frank - but don't you just want to shake the ones that don't listen to your good advice and think you are just out to get them, and make a quick buck.

Richard - ditto, it's the same situation parents find themselves in with their kids. Telling them the way it is going to be, not the way they would like it to be.

I have to ask....have you ever read Steve Morris`s book or attended any of his trainings? I just went to his Power Selling 101 course and one of the biggest aha moments I had was when he made this statement... " Sell people the way they want to be sold" It hit me so hard that I wrote a blog about it, http://activerain.com/blogsview/390805/Do-unto-others . Please check it out! In Steves eyes, the most important thing is to get the listing... ( being ethical of course) but to MAKE SURE you set them up for what happens next... ie: a price reduction! I am a firm believer in being brutally honest when asked as well..... but after hearing what Steve said, I think if I were a Realtor. I would just have to tell them what they want to hear but also give my Expert Opinion and give them a choice. But rest assured, if they chose their option, they would know exactly what my next step would be and how it would effect them.

To your success!

I think that most sellers THINK they want the truth--until they hear it. Then they either get offended or act like you're crazy for saying that to them. There are exceptions, of course, but most people can't look at their home objectively.

That is a tough situation. While you know what needs to be done to show the house in it's best light, it is not always what the homeowner wants to hear, even if they ask for it. Just curious, have you considered partnering with a professional homestager? The homestager can come in as a neutral party, make recommendations, and even give an example of staging - without jeopardizing your relationship with the homeowner.

Jennifer, you did the right thing. If you check up on this listing you will find the price dropping and still (likely) no sale.

Eric and I lost a couple of listings this way last summer. One because she didn't like the price we quoted and the other because they wanted us to cut our commission. They've both expired. The one that didn't like our price is now at that price. The cut-rate agent didn't sell the home. It didn't work out so well for those sellers. P.S. we had sold a home in the neighborhood in record time for a great price just before we talked to these sellers. Their neighbor, our client, was a raving fan of ours. Go figure.

Michael - I had one home owner blame me for their home not selling, when I told them all along the things they needed to do to get the home sold. Even when feedback came back saying the home needed updating, they refused to listen. Sometimes, you just can't get through.

I have found that we need to be brutally honest, but say it with care, kindness and grace. Not natural for me, as I tend to blurt it out!! Good luck, great post!

April - I wish the sellers would have listened to me when I told them the fruit wallpaper had to go. They "loved" that wallpaper and really did not want to take it down.

Joyce - until buyers and sellers stop listening to the media, and instead listen to us, the industry professionals, nothing will change. I actually went over everything that I will do to get their home sold, but then he said he wanted a 4% commission...I just looked at him and said "no"....but the rest of that is another story...

Joe - one of my favorite movies!

Margaret and Mary- yes, I will carefully watch their listing over the next six months and be ready should they finally "need" me.

Charles - now that is ridiculous. I have walked out on sellers like that, and it is really quite funny to see their jaws hit the floor in disbelief that I am saying NO to them.

Susan - this was one of those situations that I could just tell that this was going to be a difficult seller if I got the listing. One red flag was when he told me that maybe he should just sell it himself...I told him that maybe he should do just that. I know that when the time came to ask for a reduction, he would not do it.

4%!? Price reduction and then seller paid closing costs? Sell it yourself? Today's market REQUIRES you to competitively price your house, and to list it with a PROFESSIONAL realtor. What they save by "wait and see" for the $10,000, they will lose in closing and buying what they want at today's incredible prices/values.

Jen - I went into one listing where I knew the only people who would buy it would be rehabber. I went in with rehabber eyes, since I myself have rehabbed homes, and told the seller how a buyer would view the home. They agreed on everything, even that the price I offered them was probably right, but that they just COULD NOT sell it at that price. The problem was, they listed it in 2006 for $900,000, and they just could not stomach the market downturn and the fact I was telling them the home was really worth $499,000. These types of sellers are the hardest to convince the true value of their home.

Lisa- I read the seller and see if a stager might work. For this owner, no way was he going to pay for a stager to come by, and if one did, he would want it out of my pocket. Unfortunately, it would not have been a good investment for me to pay for a stager.

I aggree with you. Also a comment that Joe made. You can't handle the truth. That is why people think that it is okay to lie if it keeps someone from getting their feelings hurt. You did the right thing. I wish you well.

Karen - some just refuse to see the writing on the wall.

Mike - yes, saying it in a way without offending is the best way to do it.

Joyce - he also wanted to buy a home from a builder for a certain amount. Let's just say, get all the bells and whistles, but not have to pay for it. I found 1 for him, and he didn't like it because it was a national builder. I had to tell him that in his price range, that was the type of builder he was going to have to go with. The house was a model home priced $90,000 below list price because the neighborhood was finished. He missed out on a great opportunity because he refused to listen to me.

All the suggestions you made are pretty basic, common sense things...It's a shame the homeowner couldn't see the value you were bringing!

The truth is that most homeowners love their home. They have spent a great deal of time making it into something that they think is special. The trick then is to find a way to tell them about what would help the home sell, without making them feel as though you're telling them that they have bad taste.

In the end though, there are just a great number of people out there who have unreasonable expectations about the sale of their home. It sounds like these were some of those people. In that case, it's actually GOOD you didn't get the listing because it would just be a big waste of your time and resources. Also, perhaps if their house doesn't sell with this listing (which, given the sound of it, it very well may not), perhaps they'll come back to you. Being right often makes one look mediocre in the short run. It's only by establishing a pattern that you start to stand out.

It won't sell and then they will be all over the other agent wondering why. Then you will be the hero! If sellers aren't willing to do the work and understand the pricing then it may be best to let them go. How much does every overpriced listing cost an agent?

Audrey - he even said he was pleased that I was so honest with him...go figure!

Aaron - my broker had met the sellers and had the same feeling that I did, that maybe we didn't want them as clients/ But you never know what might happen in the future...as long as they are willing to listen to me. :)

That is why I don't give a price at listing appointments.

Listing Agent Trick: "Buying a Listing" Vs No Recommended List Price.

Cindy - I think time is our most valuable asset in real estate. If we spend too much time and energy on a useless listing, all we get is a headache.

Some sellers want the truth and others just "think" they want it. Obviously, you had the unrealistic one.

I try to temper my brutal honesty with some sugar coating such as "this wallpaper certainly fits your furniture well, but in my experience most buyers will want something a bit more neutral". They get the point and it doesn't sound like I am the be all and end all of decorating (though I'm not saying you come across that way at all, I think I was before I took this tactic) AND I always carry my laptop on the listing appontment to show them pictures of current listed properties and solds and point out the difference. Overloading them with information can sometimes battle the listing buyers....

Frank - interesting concept that I have never tried, thanks for the idea.

Diane - yeah, I got the wrong type of seller

Chris - I did give them honest answers, but made sure to say it in away as not to offend. Obviously, that still didn't work.

I liked Frank's answer as well.

Jennifer, Not much else you can do. We MUST be honest with folks. They may not like it and they may not hire us but they MUST hear it. I can't count how many times they call me back after their new agent fails to get the home sold. Put them on your mail list and stay in touch. And of course make sure they get your "just sold" cards :)

I'm honest, but I always make sure I compliment their homes as well so that they are less likely to get offended. I don't think people really want you to be brutally honest, even if they say they do. Do we really want our husbands to be honest when we ask, "Does my butt look big in these pants?" Nope. <Hee hee>

Well Jennifer, I can understand the frustration. But isn't it our job to make them realize the reality on the ground. People don't know the market, Realtors Do.

If they don't do any of the updates and repairs and a do get an offer, the buyer will most likely ask for a credit to cover the costs for carpet and paint anyway. It's better to have these things done and priced right up front. Saves time and sanity for all parties. <g>

Jennifer: That took courage and while you lost the listing you came away a winner. Imagine the homeowner about 4 - 6 weeks later chastising the Broker who took the listing when the Broker came back to tell them they had to reduce the price and fix everything if they expected their house to sell. A home is so personal even when we know there are "flaws" in our decorating we hate to hear about them. I have made the mistake of over personalizing my home, it will never sell unless the potential buyer loves faux finishes, murals and a wall covered in fabric. Yikes, I made all the mistakes. And I should have known better, being in the industry. Believe it or not when the home doesn't sell you may still get the listing. Patti - Capital Line Funding - CA

I guess that homeowners are still in dream land. I have had a similar experience with homeowners about this same thing. In the long term you the honest agent will be better off than if you told them what they wanted to hear.

It is such a delicate issue- I believe every homeowner thinks their home is special.

Hi Jennifer, Very well thouhjt out and presented post. You are exactly right about some sellers wanting to be lied to. And there are some incompetent agents out there who will whisper sweet nothings to them. I bet you get the listing down the road.

The trouble is we are trying to convince the sellers. When it is the agents that are overpricing that need to be convinced.

for sure one of our toughest challenges

When I've been in that situation, I tell the sellers I would love to be their second agent! You might get your chance yet!

The challenges of this business are numerous, but it is crazy that they want you to talk price and base their decision on the price, not the competency, track record, ability to strategize, etc...amazing!!!

People are really sensitive about their homes- they obviously liked it the way it was! It is SO hard to tactfully tell someone that their house is disgusting and couldn't possibly sell the way it is now and at the price they want! I had a listing with a partner not too long ago- listed originally at close to 1 million. House was dirty, and filled with stuff. Slwoy, every week, we got them to put things away, and with no offers, and agent feedback slowly the price came down. We finally sold at $855. But sometimes it is better to walk. You never know, they may come back to you!!

It's a bit like when someone asked "Do these jeans make me look fat?", we know, they don't really want the truth.

All homeowners DO think that their home is "special." However, here is the problem with NOT taking the overpriced listing. I have been dutifully turning down listing after listing. Well....all too often, the person who takes the overpriced listing has been able to "talk them down" over time. It usually takes about three months. But the point is, that although I really believe in being DEAD HONEST with people, I've lost an awful lot of income that way. So, at least in my market, being dishonest seems to pay. Sure you make less than you normally would due to advertising costs, but when all is said and done, I would have come out well ahead with a couple of those listings. To b honest, I haven't run into one seller who was at all realistic. They all want to test the market at higher price than is wise.

As a first-time home owner myself, I can completely relate that home owners get attached to their homes and don't look at them the way "outsiders" do. When we bought our house 3 years ago, we thought it was huge compared to other houses we had looked at. We recently had an aquaintance tell us that our home was so small, she wondered how we managed with 4 kids! I was shocked and offended. My house isn't small - why would she say that?? We have 4 bedrooms! We have 3 bathrooms! Are her eyes broken??

When I got pregnant (again), this time with twins, that one act of nature made us re-evaluate our house. I realized then that our house is not quite as large as I once thought it was.

My point is that sellers may not accept what you say at first because your assessment of their home is one of an outsider. But, once an act of nature occurs (like a listing expiring or the agent coming back for a price reduction), you'd better believe they'll re-evaluate. It is just frustrating to be on the front end of the assessment so I feel for you! (I also feel very, very sorry for the agent who will one day list our home! hahahaha)

~Renae

You win some you lose some. You're a professional.

Overpriced homes are like an albatross around your wallet. If there is one i have to take there is a price reduction within 30 days. Again we can advise them until we pass out but it is their call. When it doesn't sell they try to use us as scapegoats. The best thing,at times is to walk away. More likely then not it will be around for you to save the day.

Jennifer - Good stuff! Thanks for keepin us all on track. We're tempted to take these listings. But, it's in no one's interest to do so. Keep the door open, better to get it as their 2nd or 3rd agent down the road.

agreed! good stuff

Jennifer, I don't think sellers want to be lied to. Selling home is very emotional. Of course you're right you have to be honest, I usually identify myself with them: "If we want to list this home we have to..... " "We are not getting showings we have to lower our price by...." This is what as worked for me. I want them to feel were in this together.

I've found when called in to do a consultation for homeowners who are DIY for the home staging that the generally the one responsible for the decor selections really only wants my approval of how the house looks as it is.

They don't want to make small changes like...removing the grand piano out of the small formal living room, the board-room table out of the eat in kitchen...etc. I get a lot of 'really?'

When someone asks me for my opinion I just about know that is how it will go down. When they call and say 'I need help'...they are ready to hear what I have to say and open to change.

I have been in a very similar situation many times recently. I do not believe that sellers want to be lied to but I have found that many of them want to believe that there home is worth much more than it is & there is always an agent out there who will list their home for more. They only come to find out the reality after months on the market & no or very few showings & then the price reductions begin..They end up netting less but hey, more important for us to be honest!! Great job! Not a seller You want!

Jennifer,

Great post. I believe we have similar personalities and I can see you being honest with a seller and them taking it wrong. It baffles me when this happens however we do live in the land of Mr. & Mrs Nice where we are suppose to share what they want to hear not the hursh reality of what is going to get them their home SOLD... be happy they are someone elses headache... more time for you to sell, sell, sell others more worth clients homes. ;-)

Nice meeting you the other day!

Kimberly

Jennifer,

Great post. Sellers think their house is better than anybody else and want more money. I don't want overpriced listing because I'm only wasting my time and money marketing it and if it does not sell, the seller will blame me. I know some agents will take overpriced listing just to get a listing.

Overpriced Listings are not beneficial to anyone. They ae a drag on everyone involved with the listing.

Life is too short to spend time on something that won't work. You did the right thing, and that is the way to do business.

Hey Jennifer....

The midwest must enjoy fantasy land....see my blog...

Excuuuuuuse ME...I thought prices were realistic, Interest Rates Great...How Sad

My question is always...if I thought I could make more money....why wouldn't I do that ?

Of course there are agents that tell people what they want to hear, not me, my time is too valuable and at some point they will hear the truth, may as well be me up front.

Jennifer - I have had similar experiences. It sounds like this seller isn't ready for reality. After the listing expires, maybe they will get real with you.

It can be terribly damaging to allow an over-priced listing. I would recommend to stay in touch with the sellers... they may not give the price reduction to the current agent... and the agent might not even ask. But, when it is time to relist, you might get the nod.

You did the right thing. move on to the next, you can't help everyone.

I have to agree with you Michael they really don't want the truth.

Likely the agent will have it overpriced and it won't sell ... and it will sit and sit. Sad for the seller.

FEB

2008

Jenifer Good for you- Honesty gets results. Telling a seller anything other than what you see and what your experience tells you will sell is a diservice. Down the road, if the house is stillon themarket they may realize in time you were helping them MUCH more than the person who eventually got the listing.

Look inthe mirror and smile-the person looking back at you is HONEST

Let the other agent spend the marketing dollars. You may get the listing in the long run. Sometimes you can deliver the message more gently in written form. Tell the seller that you are going to be looking at each room carefully, measuring and writing down impressions as you go along. Write down all those things that need improvement in your report. The seller may be shocked or offended, but I'm sure he/she will refer back to that list. It will be your calling card. You will be remembered for your professionalism. Good luck!

Being the second (or third) agent in is not a bad thing! Of course, it is for the sellers if their home is going to linger on the market as overpriced! You absolutely were correct and an excellent realtor in being straightforward. I think it could help to preface any comments on the home with "Please remember, I've looked at literally hundreds of homes and hear feedback right from the horses (buyers) mouth..." and then give your recommendations. Actually, that comment was a "mini brainstorm" for me after having read your blog! In any case, great entry, congrats on the feature and stay your course, Jennifer!

Jennifer,

That is oh so true! I have lost some listings due to the fact that the seller thought that his home was worth more than the price range I suggested after doing a CMA. The seller went with another agent, who obviously agreed with him. Guess what? The home is still on the market and has gone through 1 price reduction already.

There's a report called the Home Risk Report at www.homesmartreports.com and it will help you break the "bad news" to the seller that they are over-pricing their home, if that is the case. One problem with exposing over-priced homes to owners is the real estate agent becomes the "heavy" or "bad-news messenger". Most everyone in the blog string believes that upfront honesty is the best policy and I agree.

However, if you can use data to your advantage and blame the market for a lower listing price (which is being honest) and say, "but if you will make these changes in your home, I believe we can maximize its value", you put yourself in a better light with the client. Irrespective of all else, people are invested in their home and if they think you are attacking it for any reason, it can be offensive to them.

Attack the market situation first and then say "but here is how I think we can get the maximum amount for your home" and give them the suggestions.

Thanks to all of you who have commented. This post became an animal and I never expected it to get this many comments! I plan on keeping an eye on the listing, to see what happens. So many of you have wonderful ideas on ways to persuade a seller to see the lights...thanks for all the advice!

I did a CMA for a potential Seller and lost out to an agent who overpriced it by $50,000. Of course, it didn't sell, but one month later, imagine my surprise two months later when they dropped the price from $699,900 to $539,900. No intermediate reductions, just one huge drop.

It's a really crazy time in the business. I get offers denied all the time, and most of the time I am told by th buyers agent "they have 2 backup homes in case they cannot come to terms with the seller on this one". So you are absolutely correct, there is a lot of inventory out there, and unless your home is a real gem there is no reason at all to believe that it will fetch a higher price than the home that is very similiar down the street.

People don't always want to hear the truth and then wonder why the place is not selling -

AMEN! I am so glad someone is finally saying it! I've heard for years the "buyers are liars" saying and have even seen it embroidered on a pillow, but no one ever says it about the sellers. I too have come across this numerous times and wished they would've gone with a different Realtor. They want to hear what I have to say but don't want to LISTEN.

They will eventually see their error and wish they had listened to you. Hopefully when they do, their listing will expire and they will call you because you were honest.

In this market we need to get away from clients that don't want to listen and work with people that want our help and are willing to listen. On to the next.

Thanks for the wonderful read. It is alway nice to to be reminded that other agents have the same hurdles in their business. In the mean time, I keep dreaming about the listing appointment where the seller agrees to the recommendation and price then sales in 30 days. You know it does happen!

Jennifer - Sorry to hear about your experience, but it's a universal one. In this market we still have sellers who refuse to see reality. At least you did the best you could to provide them with an honest view of the market, pricing, and the condition of their home. Sometimes they just have to find the truth for themselves before they become believers. Don't stop being honest and realistic. In this market we don't need to sit on overpriced homes that need updating. There are plenty of other ways to spend our time and advertising $$. Best wishes for a prosperous 2008.

jennifer

I had the same thing happen to me recently. The house backed up to a major busy street and was so outdated. The owner wanted to list if for more than 40K over the recent comps. I held my ground and lost the listing.

I see it as a blessing.

What sellers need to know is there is a difference between things that add value and things that make a home more saleable. If there are two homes that are completely identical in every regard (including price) but one has old wallpaper and the other, a fresh coat of paint in neutral colours then guess which one is likely to sell sooner? A fresh coat of paint will help the house sell sooner, however, that doesn't necessarily make it worth more than it's comparable. Great post!

Just had the same thing happen to me 3 days ago. It hurts as a agent to try to help people, do the best you can for them and someone else feeds them what they want to hear and they fall for it. You know the seller's will regret later what they have done, but for now it's too late.

Jennifer:

I think that it a case of don't kill the message. On some of the items that you noted was a issue with the home I would say was over stated. I know that all real estate is local. Here in California buyers do not hate ceiling fans. In fact they are considered an aid to energy efficiently. Another thing I noted in your blog, you have a tendacy to make the seller wrong for selecting an agent that they preferred over you.

Stop ---- and look at your selling skills. Could they stand a bit of updating. Again, I think it call rapport.

Jennifer,

Sometimes "Brutally Honest" is not the right approach. I do agree with you that an over priced listing is mostly a waste of time, advertising dollars and spent emotions. Most sellers want agents to be honest with them regarding pricing, but all sellers already have a price in mind. Before any transaction whether it be taking a listing or making the sale can happen, most agents forget that the first step is making friends with your customer and then building trust. The "one stop" listing approach is not very effective.

It's a hard place to be in. You never really know what exactly should be said or how to say it. Like everyone says, you win some, you lose some.

Lorraine- like you said, real estate is local. The ceiling fan, as I mentioned, was in a 10x6 kitchen. Ceiling fans in other rooms are ok, but not in a kitchen. I lived in California for 4 years, and I don't recall ceiling fans in kitchens being a good thing. Maybe you just missed that part of the post. For a home priced around $200,000, with six more just like it in the neighborhood for sale, the things I mentioned ARE a big deal. In fact, the funny thing about all this is that those items are cheap to fix, but will bring big results when a buyer walks through.

Regarding the agent, the lender who referred the sellers to me, sat in on the listing presentation of this other agent, and could not believe the things she was telling the sellers...a lot of fluff was his words..no honesty at all. He even told them to think twice about selecting her. So it wasn't just me thinking the sellers were making a bad decision.

As far a building rapport, I had one month of rapport already built with this seller, because they wanted me to help them find a great deal in new construction to buy. They hadn't originally wanted to sell, but possibly rent. They knew my stance on honesty. I also had looked at their home the week before, so this was a two step process. When you don't get a listing, it doesn't mean you need to "update your selling skills". Sometimes, it just doesn't work out. Thanks for commenting and I hope I cleared up a few things.

The thing I find most frustrating when a seller makes this type of mistake - they are rarely willing to admit it. I hear people discuss 'bad real experiences,' they rarely say "oh, that first agent really was right, and we just wouldn't listen..."

On a listing appointment, I get nervous when one spouse (or both) goes silent. If I can't get them both really talking, I fear the worst.

FEB

2008

Jennifer,

Some sellers are very realistic and listen carefully to price and fixing suggestions from a real estate agent. And then there are those who think they know how much their house will sell for and often end up not selling at all.

Jennifer,
The sellers have their responsibility too. The sellers with google could have researched all the agents that they interviewed. With a good AR presence or google juice, they could have made a more informed choice. AJ

Often buyers want to be lied to as well. They want you to tell them the property will go up no matter what.

Don't think anyone wants to be lied to... sometimes it's just hard to handle the truth

MAR

2008

Well the saying is "buyers are lier's" I guess should be sellers like lier's. Anyway its all apart of human nature. What we say, and what we mean is not always the same.

One of my favorite sayings is " people will DO what they want to do". I think this applies to sellers, some of them if not all have a hard head, sooner or later they get it. Just hope you are the last agent in when they do.

MAR

2008

Can anyone explain to me how spending 6 months of advertising expenses on an overpriced listing is of any value to any agent? Thanks but no thanks.

MAR

2008

Jennifer, something so similar happened to me just last week (again). This couple and their two adolescent boys have been in the home for 5 years and are being transferred to NY, so they HAVE to sell. The place - in a toney suburban neighborhood - was a mess ... all the walls needed repainting, some of the siding needed to be replaced, the carpet needed at least a cleaning, there was clutter and (bad) smells everywhere, etc. We went over the entire home with a fine-tooth comb and I was honest with them per their request, letting them know what they needed to do to bring their home up to market value. I then did the CMA and emailed it to them the next day, and they were disappointed to listed with another agent who overpriced it by $10K. I looked at the photos and nothing - except picking up some of the clutter - was done. To be honest, I felt a sense of relief that they didn't ask me to list it because I knew their participation would be minimal. In situations like this, you have to ask yourself whether or not you really WANT the listing and then move on. I know a lot of agents don't do that, especially in today's market, but my job is to SELL homes, not just LIST them.

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