Hey Randy, I hear those words way too much. My market is full of overpriced listings. It seems REALTORS(R) will take any thing to get their sign in the ground. I spend a lot f time laughing in the mornings while checking the MLS hot sheets some of the listings are off by as much as $100,000. In a market where the average price is $215,000 that's quite a bit. Must be the vinyl fencing.:)

Randy.... not a realtor here, but I hear this off and on from realtors as yourself.  It just makes you wonder. Why don't some clients get off their high horse and listen the professional. What's sad is, what were the actual values 6 months ago? Did he lose out once before and depending on the area, are values dropping a little?  Again, it makes you wonder.

Thanks for giving us a good example of why we've got to be upfront with our clients.  This agent is doing a dis-service to his/her client. 

Don't price to to high and wait for a lower offer, make your listing the best priced home on the market and be the first to receive and offer. I believe the seller who does that will net more monet than the seller who qrices high and waits.

Good blog.

Oh yes, how many times has that come up. And so often the seller can't really identify WHY the home is worth more, it just is. Obviously this is not a motivated seller...or one that is motivated by the wrong things. Maybe the agent will take your comment back to the seller since he doesn't seem to be on the ball enough to have come up with the realization on his own.

Good luck, Randy.

Sounds like it's time for "Show and Tell" with the other agent.  That's a good listing to watch expire and go after!!  LOL!

Kay's right...if it's 6 months old, must be about time to expire and hear the truth. =)  especially if your buyer closes on the other house.  amazing how perception is NOT always reality in real estate!

Good for you to represent your client - and be sure he knew the comps -

Randy,

Just another example of clients not understanding "market adjustments". The market has shifted as we all know slightly downward, but is is our job as Realtors to educate our clients of these market adjustments. And yes some clients now matter what won't budge on their selling price.

God Bless, Saul 

One observation that really surprises me is when a seller thinks their property is worth more, but they don't treat it like it is, it will need "de-junking" or paint, etc and yet they insist that it is worth more than market price.  I can better understand the one that treats their property like it's more valuable, because it very well could be.

Judi

Randy: I'm laughing like crazy... my parents live on the Big Island.. they need to move back to the mainland... I won't go into all the details but they have their home on the market and it is way over priced.. and I can't get them to get real.. they just don't get it... 

An overpriced listing will EAT YOU ALIVE.

When will they learn?

It may be what Kaye says. I'm willing to give the agent a break. It might be that they have tried to tell them the home is overpriced but they refuse to budge. It may be, given the fluctuation of the market ,that they paid too much for it and can't afford to sell it for less....until they realize how far in the hole they really are but not selling at a lower price.

Whatever it is, kudos for helping your client understand which is the better purchase. I am still amazed at thenumber of people who think "it must be better if it costs more"...still, in this they and age, I run into those folks occasionally....it's likebuying the brand name instead of the generic for them I think; doesn't matter that the ingredients are exactly the same. We do what we can.

Randy...

See comment #1 for my comment :)

Bryant - It is hard to miss one $100,000 off if the value is $215,000.  maybe they have new Home Depot kitchen cabinets.

Jeff - Fortunately our values have held and even increased slightly.  The problem in many cases is a seller that either is just unreasonable or the agent over sold him to get the listing.

Ava - I find many new or inexperienced agents over pricing homes to snag the listing.  Then there they sit not knowing what to do next.

Rob - You are so right.  The over priced ones end up dropping even lower than they needed because of the days on the market.  Your best chance of getting the best price is in the first 30 days.  After that your odds start dropping.

Jeff - The problem is for most sellers this was their home.  They loved it and can't understand why the next guy won't fall madly in love with it and pay any price.

Kay - I am not sure if it will be worth chasing.  After 6 months ands they are holding their price. They don't sound very motivated.

Leigh - In our market most listings are written for 12 months.  After 6 months they can cancel with a 30 day written notice.  Each company has their own policy, but that is what I have seen the most.

Thesa - I never let a client submit an offer without pulling comps and tax records at a minimum.

Saul - I have come to the realization that some folks need to fail to before they will except the truth.

Judi - This one was nice, but it definitely had several small issues I would have addressed before going to market at top price.

Kaye - That is a tough one.  My parents over paid for a home in Wisconsin a few years back.  I could not talk them out of it, because they were in love with it.

Lenn - I have only had one listing that I did not sell ever.  It was overpriced and my client would not adjust.  I took it because he was a repeat client and I was sure after he tested the market he would bring it down where it belonged.  I have regretted taking that listing ever since.  It hurt my reputation in the neighborhood and probably costs me a few pieces of business.  Since then I have gotten much better at saying no.

You know, I haven't been in the biz all that long but even I have realized that an overpriced listing will "eat you alive".  I now have a limit I'll reasonable go up to and if the seller persists, it's not worth my marketing energy/money/efforts. 

Inexperienced OR STUPID...not desperate......

=-D

Deb  - I pulled the records on the home they have a ton of equity.  They have excuse for the overpricing.  It will never appraise.

TLW - In regards to comment #1, see my response comment #15  LOL

Elena - For a new agent you are wise beyond your years

Alexander - I think it can be any combination of the three.  When business gets slow some agent get desperate and will take anything.

Those homes that are over priced for this market languish and then become "old news," so to speak.  If sellers are motivated to sell I've found that most sellers price their home for fair market price..  If they are testing the market to see if they get more money for it than the neighbor two blocks away, most likely it will sit forever.Fish or cut bait do you want to sell your house or not? We on the SEACOAST NH & ME are seeing some huge price adjustments and it takes much longer to sell.

Patricia AUlson/SEACOAST REALTOR/NH, & ME

URL: www.patricia4realestate.com 

"Inexperienced or desperate agents and unrealistic sellers is a bad combination."

Randy - you bolded this above.  It should have been highlighted as well!

de·lu·sion: A false belief strongly held in spite of invalidating evidence, especially as a symptom of mental illness.

I teach my kids about delusional people by letting them watch a bit of the American Idol tryouts. When they're older and can better grasp it, I'll take them to preview over-priced homes with me.

"Inexperienced or desperate agents and unrealistic sellers is a bad combination."

Randy, I can't agree with you anymore! Graet Post!

Scott

What a great post-and unfortunately too common-especially with newer agents or those part-timers that only list 1 or 2 a year.

Randy, I saw my next door neighbor make the same mistake.  He picked a Realtor to sell his because this Realtor was telling him what he wanted to hear instead of what he needed to hear.  As a result his house still has not sold, and it is now more than a year later.

Patricia - That is the question, are they motivated to sell?

Kaushik - I would have highlighted if I knew a way to do it on AR

Steve - At least the over priced sellers aren't singing.

Scott - Mahalo (thank you in Hawaiian)

Stephen - I see many new agents over pricing to get listings.

George - After a year he still didn't figure it out.  Pretty sad.

That made me smile very wide :)

I have this problem a lot. I agree that a lot of Realtors® will list a home that is over priced just to have a listing, I see all the time. Most believe they can adjust the price down in the future. Representing sellers and marketing homes is very time consuming as it is. I just come right out and tell the owners I think they are asking too much for their home. I do something like this--When they quote their price and its way too high, I tighten my faced and ask "how long do you want your home to be on the market?"

It's important that YOU know the Price before you meet with your client. It also helps if you ask the first time you talk to the seller "Do you have any neighbors or friends in or near your subdivision who have sold recently?" Write their responses down and research everything about these properties, especially the real price they sold for. Most sellers will quote what the house was listed for because it's hard for them to find out the selling price.

If you do the above, you are armed and ready for the inevitable "my neighbors' home sold for "X" in "X" number of days".  SELLER SOMETIMES WILL JUST FLAT OUT LIE!!! I guess they think that we just don't do our homework or can't find out the information.

In closing, it is our job to address the price issue with our client's and to nip the problem in the bud. If one chooses not to do this, then they are not doing their job and are taking what they believe is the easy way out. It almost always back fires and they pay for it later on in the selling process.

In Texas, the market was slow, and of course people where overpricing their homes. It was not uncommon for a seller to go through 3 agents before their home finally sold. The 3^rd agent being the hero, because they got to capitalize off the prior's effort to get the seller to adjust the price or do the things that makes homes sell.

If I lose a listing based on an overpricing issue-an agent promises a higher selling price that I know in my heart is way too high--, I don't get upset because I know I just saved myself a huge headache. I have even been know to come back and get the listing once it has been canceled or has expired.

Randy,..... I think that is the other problem which has been mentioned in many posts.....the fact that the realtor has sold the consumer on the price factor, that they can get that higher price. Well....if they did their homework, they would know that this is not true and always the case. It's ashame, but it is reality when in sales. Same thing that I have to put up with when giving rates and fees. Someone will under cut me, just to get the deal, when it might not happen.

TLW - I am getting it "SVW".  It took me awhile.

Grant - "I tighten my face and ask "how long do you want your home to be on the market?"  I love it! That is a great way of handling it.

Jeff - I see that a lot from the lender side.  Good Faith estimates that do not resemble what they will actually get in the end.   Of course the real rates come out at the 11^th hours when it is take it or leave it time.  We get that type of agents in all segments of the industry.

I am on your side. Overpriced idiot in Makakilo alert!   I just had an offer rejected today because my client was using a VA loan and because my client asked for credit for closing costs.  The listing was overpriced by AT LEAST 10k.  The property has been on the market for 200+ days and the seller will be netting well in excess of 100k on the sale.  The property needs a fair amount of TLC.  The seller is nuckin fritz!

The sellers agent told the seller to take the offer but the seller said he didn't thinkthat it was a strong buyer (she is already pre-approved and just got on a plane to go back to Iraq today.  Her husband is here with a power of attorney).  Maybe he thinks she will find another property in Iraq and back out of the transaction?  Or maybe she wont qualify for the loan because she accumulated new bills in Iraq?  The price we offered is more than fair, accounts for closing cost credits, nets the seller in excess of 100k on his 2 year investment and the list goes on.  I am 99% certain it will appraise with the VA so that should not be an issue either.

Do I sound frustrated?  Hell, this should have been its own blog I guess. 

Just wanted to let you know that you are not alone Randy.

David & Tonya - The 200 days on market is the big one.  Do they need another 200 days to get motivated?

Randy, one of the areas I work heavily has homes all over the map in listing prices. You might find a home for 25k less than another in mint condition but it does not stick out like a sore thumb overpriced listing because there are almost 300 homes for sale in that area and many are similarly priced. I guess the difference is, neither price is technically over market value because they are selling all over the map too! I wonder if this is true in other areas.  I also wonder if Seller With Higher Priced Listing in your scenario has not real motivation to sell.

Carole - After six months on the market and no closings at their price point I am not sure what other conclusion you can come up with. I did speak to the agent after the showing and she indicated the seller was determined to sell their's for more than any other.

No  appraise, No loan.

Edith - There are some owners who believe someone will love it and pay the difference.  They also believe in the tooth fairy I am sure.