Fantasy Island - Revisited!

By
Real Estate Agent with Haven Express @ Keller Williams Arizona Realty BR534744000 & BR540649000
http://actvra.in/4S4Y

It seems that many Sellers are living on Fantasy Island.  What's more - they have managed to convince supposedly "professional" real estate agents to move there with them! (Click the graphic below for video)

 

 

I continue to be amazed by the number of overpriced listings - and I mean overpriced to the point where there is absolutely no justification or reason for the list price except that's what the Seller wanted to list it for.  

 

These overpriced listings either Expire, Cancel or experience dramatic price reductions.

 

It takes two - perhaps three - to create these listings.  The Owner / Seller, the Listing Agent, and the Listing Broker who blesses it.

 

Why would the three of them do such a thing? 

 

 

Is it a "Hail Mary" football pass hoping that lightning will strike? 

 

Is it that the Listing Agent will take a listing at any price just to have inventory to hold Open Houses in search of unrepresented Buyers or Sellers?

 

In this market - make that in ANY market - we have a fiduciary responsibility to our clients.  I don't see how participating in their pricing fantasy is fulfilling that responsibility to them.  Perhaps I'm overlooking something when I'm looking for the "Win-Win".

 

It doesn't matter what price the Seller "wants" - the market will bear what the market will bear.

 

It doesn't matter what price the Seller "needs" - the market will bear what the market will bear.

 

If the Seller MUST sell, they "should" receive Market Price for their property IF it has been offered at an appropriate List Price.

 

On the HUD1 - or today's post TRID equivalent -  it will either show an amount as "proceeds to Seller" or "amount due from Seller".  If the Seller doesn't have the "amount due from Seller" that's called (at best) a Short Sale and requires lender cooperation. 

 

Win - Win = Priced for the market, property sells, Seller and Broker meet objective of getting the property sold.

 

 

 

Lose - Lose = Priced at Fantasy Island pricing, property fails to sell, Seller disgruntled, Broker out of pocket time, money and effort.  A waste. 

 

Let some other "professional" buy the listing - and get on with taking saleable listings priced realistically for the market. 

 

Am I missing something??

 

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All images purchased and  licensed from Shutterstock , shared from YouTube, sourced from Vectortoons, or were taken by the author unless otherwise noted.

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About the Authors - Updated 2015

If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with Haven Express @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.

Listed, Sold and Closed more than a hundred Short Sales with the highest success rate in the Phoenix Metro Area!

Listed, Sold and Closed 100% of listings taken (dozens of them) since June 2011!

HavenExpress.com

Tony and Suzanne Marriott

Associate Brokers, REALTORS
Keller Williams Arizona Realty
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Tags:
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fantasy island
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Rainmaker
2,133,093
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Right on target Diana Dahlberg - thanks for stopping by with a comment!

May 31, 2016 11:10 PM #39
Rainmaker
2,133,093
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Very much agree Rose Mary Justice - thanks for stopping by with a comment!

May 31, 2016 11:11 PM #40
Rainmaker
189,942
Michael Layton
Big Block Realty - Palm Springs, CA
Michael Layton 7604085300

Everytime an agent tells me they are stressed I ask them how many overpriced listings they have.  The stress levels usually are very connected!

May 31, 2016 11:43 PM #41
Rainmaker
1,240,365
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

I think you covered it. The market will bear what the market will bear. 

May 31, 2016 11:58 PM #42
Rainmaker
8,252
John Nash
Solutions Real Estate - Phoenix, AZ
Real Estate sales and investing

From this day forward I will only refer to over priced listings as Fantasy Island Listings.

Jun 01, 2016 12:56 AM #43
Rainmaker
1,192,444
Lyn Sims
RE/MAX Suburban - Northwest Suburbs of Chicago - Schaumburg, IL
Schaumburg IL Area Real Estate

Great post & it is indeed a conspiracy. Depending on your market, there is always someone grasping at straws.

Jun 01, 2016 06:32 AM #44
Rainmaker
2,133,093
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Good point Michael Layton - thanks for stopping by with a comment!

Jun 01, 2016 11:52 PM #45
Rainmaker
2,133,093
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Agreed Marte Cliff - thanks for stopping by with a comment!

Jun 01, 2016 11:52 PM #46
Rainmaker
2,133,093
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

I think that's a great idea John Nash - I will too!

Jun 01, 2016 11:53 PM #47
Rainmaker
2,133,093
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Unfortunately Lyn Sims - thanks for stopping by with a comment!

Jun 01, 2016 11:53 PM #48
Rainer
250,363
The Derrick Team - Indy Metro Realtors
Carpenter Realtors - Avon, IN
Your Pet Friendly Realtors

We've sold overpriced listings at list price. But mostly we document they are overpriced and take good care of them. Eventually they come down and sell. Send them to us. Only the last realtor to list the home makes the money. And no, I'm never stressed...  ;)

Jun 02, 2016 04:55 AM #49
Rainmaker
2,133,093
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

What is the benefit to the Seller of an overpriced listing The Derrick Team - Indy Metro Realtors ?  Carrying costs for the months it doesn't sell.  I'm well aware of the "benefits" to the listing agent...

Jun 02, 2016 06:40 AM #50
Rainer
250,363
The Derrick Team - Indy Metro Realtors
Carpenter Realtors - Avon, IN
Your Pet Friendly Realtors

Helping a client who needs to sell their home, eventually proving we were correct, us selling the home and not another agent. Pretty simple really. And in our market homes are tending to sell for more than you think. I just receintly saw a home sell for double what it was worth (cash), and the buyer bulldozed the home to build another. And having a listing is better than not. Everyone has their on way of doing business and we do quite well in our market.

Jun 02, 2016 07:49 AM #51
Rainmaker
1,166,315
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Good morning Tony and Suzanne, I've walked out of listing appointments knowing I will not get the listing. For me, there's no point in marketing a home that's grossly overpriced. Every market is different though, I'm sure many homes sell well over list price in some parts of the country but not in my area.

Jun 04, 2016 10:20 PM #52
Rainmaker
2,133,093
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

I saw a lot of benefits to the agent in your response The Derrick Team - Indy Metro Realtors - but nothing that really answers "What is the benefit to the Seller of an overpriced listing"

Jun 04, 2016 10:51 PM #53
Rainmaker
2,133,093
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Agreed Patrick Willard - thanks for stopping by with a comment...

Jun 04, 2016 10:52 PM #54
Rainmaker
2,133,093
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

We're on the same page Beth Atalay - thanks for stopping by with a comment!

Jun 04, 2016 10:53 PM #55
Rainmaker
666,454
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

There is a listing about 1 block from me. It has been on the market over 20 months and 2 agents. While the water bill can be over $1500 a month in the summer. The plush yard, big pool may not be a problem.  They raised the price by another 100K indicating they are in hurry.  I did not want to go inside finding out an agent brag this is a new listing buy now.  I am in an area where just about any crap gets sold in 1 week over asking price.  My question is what is on seller mind. Do you want to sell or not.....

Jun 05, 2016 09:32 AM #56
Rainmaker
2,133,093
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Thanks for your comment Sam Shueh - always good to hear from you!

Jun 06, 2016 12:20 AM #57
Rainmaker
2,133,093
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

and another one

Jan 28, 2017 04:27 AM #58
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