I showed a property recently that was on the market for the better part of a year, and it was approximately 35% over the current market for a similar property. Of course, it didn't sell. It went off the market, and then came back on at 25% over the market.
The second agent fluffed up the description to make it sound like it was really a bargain. She says it's, "Completely gone over!" What does that mean? It meant that the owner painted, hung one ceiling fan, had the floors refinished and changed the kitchen sink. That's nice, but it's still 25% over the current market, even with a reduced price.
This is a topic that gets a lot of airtime on Active Rain and other Realtor blog sites. Friends, please be honest with your clients. A house that is 25% over the current market is going to sit, get stigmatized and end up in the hands of another agent in six months. For some companies it's all about market share. The more listings they have, the more successful they look. Maybe, but if they never sell, that also gets around.
We're in the home selling business. If we're not selling these homes, we're in the home babysitting business, and unfortunately, unlike when you're babysitting for extra money during the 9th grade, it doesn't pay well. You are more likely to have potential future clients look at your listing sign month after month and decide you don't actually sell homes. You just plant signs like Spring flowers. I know, I've had my own garden.
Just like a hundred posts before this one, let me encourage you, please don't take overpriced listings. Overpriced listings are for FSBOs. We're in the business to move real estate. If we price it right, they will come. If they come, we will sell. If we sell, the market will recover.