Yes, I have walked away from listings. Why set someone up for disappointment and throw dollars out the window? Several years ago you could price higher and you might get it...not now.

Dave

I've turned down more than one listing in the past few months. I tried the phrase "I'd rather disappoint you now then let you down later" and it seemed to work. I also tell that there are dozens of agents that will list the home at the price they want and then a few weeks later they ask them to lower the price to a more realistic number. When that happens they need to fire them and call me back. None of us have the money, time or energy to spin our wheels on a listing that has no chance of selling.

Funny you should mention that. I wrote a blog yesterday about Agents taking high priced lisitngs. I turned down a lsting because the seller wanted me to list $85,000 higher than the last close and there are several similar homes $85,00 less and more. So, they listed with someone else who I guess told them what they wanted to hear. I am a blunt guy and I am not gong to waste my time, money and resources or my Fellow Agents overpricing. Now, I believe in leaving room for negotiation but not $85,000. I don't consider myself doing my job inundating the market with overpriced listings.

Funny you should mention that. I wrote a blog yesterday about Agents taking high priced lisitngs. I turned down a lsting because the seller wanted me to list $85,000 higher than the last close and there are several similar homes $85,00 less and more. So, they listed with someone else who I guess told them what they wanted to hear. I am a blunt guy and I am not gong to waste my time, money and resources or my Fellow Agents overpricing. Now, I believe in leaving room for negotiation but not $85,000. I don't consider myself doing my job inundating the market with overpriced listings.

Yes, sometimes it is better to walk away when the seller is not motivated.  I spend marketing $$$ and my goal is to sell the property!!

Kevin  Absolutely!  Turning away listings (and buyers for that matter) is a good business practice.  It's hard as a new agent to turn away any business, but eventually we all learn that it's OK to say "no thank you."  Same goes for Buyers - if you're not pre-qualified and not willing to get pre-qualified then I'm not showing you homes.  Very timely post!

Kevin:  I have turned one to two a week down now for several months.  I just hate to see inexperienced agents try the play the seller's game and go through all that pain and heartache.  Take it from me IS IS NOT WORTH it just to try and collect buyers.  There are too many other legitimate ways to do that and for all the ones that you do take that are priced right, there will be more buyers than you can handle or pass off to buyers agents.  Take my advice - Put down the high price!  LOL

All the time!  I may go out on 10 listing appointments a month and take one!  I need sellable homes wiht realistic sellers that will listen to us.  If not, call out competition, drive them out of business.

I recently turned down a listing.  It was a condominium that was over-improved in a community that has a reasonable amount of inventory for sale.  The seller wanted to sell it furnished at a price significantly higher than competing units.  The seller also wanted to only commit to a 90 day listing at a time when the average DOM for a sale was over 180.  To market this property would require a financial investment on my part that I did believe I would ever see a return on so I passed on the listing.

I haven't turned down one in a while. Someone will list the house evevtually.

Of course you walk away....is there any question A listing agent gets paid for doing lots of things but how they really earn their money is by pricing the property properly

I've passed, but I ask how long they want to "try" their price for.  If they don't have a date in mind where they would realistically (and comfortably) price it correctly, they are not sellers and I would rather spend my money & time elsewhere. 

I like Cindy's response, that's a great one.  I had a seller recently ask me to not only list the house higher than I thought it should be, but also if I would take a lower commission. It's not in anyone's interest when a real estate broker "buys the listing" by agreeing to a higher price than is reasonable.  Sometimes you aren't 100% sure, then you try for awhile, but I always tell the sellers that we'll know in 25 showings or 30 days if we've missed the mark on pricing.

Its not worth taking an overpriced listing. It wastes your time and your marketing dollars. It also provides you with the start of a reputation of having overpriced listings.

A fellow agent had just mentioned that they had refused to take an overpriced listing. A few weeks later the seller called him up and told him that he would list the house at the price the agent had suggested. The seller said that once they saw how serious the agent was, they realized that they were asking too much. 

She wants to price it 20% over what comps say would be a fair market value....nooooooo waaaaaay! Getting the listing "down to earth" before the listing becomes stigmatized would be almost impossible in this market.  It's so hard not to take them because there aren't that many listings to be had right now. But this looks like an abyss into which you will just throw good money after bad. Been there done that with listings 5% above market value....and that was a killer in a better market. 

In this market - you did the right thing. I think I, like many agents - just don't bother following up with people like this. But the next time - I am going to make them an offer they can't refuse - I am going to tell them to list it with another agent and allow me to follow up in 30 or 60 days and find out how it is going. What ever happened to the concept that a REALTOR is not supposed to knowningly list a home at a price it can't sell?

Well, I wanted to the last coop we listed but an agent in my office listed a friends unit... you know where this goes... i become the mean broker who claims it is over priced.  23,000 over the exact unit which sold 4 minths ago... so i tell her fine we can list it but i am not spending advertising dollars on this.  famous last words some one came in and bought it 5000 under under the over priced asking price.  at this pount in this market i am finding there are some houses which come on so very well priced and I thin =k they will sell immediately... two months later they are still around.  then there are others which i think would never sell and guess what.... they do.  any one else feel that way?

list it to SIT, OR List it to SELL! thats my motto!

Agents aren't the only ones to refuse a "listing".  We're a for sale by owner company in Massachusetts and have had occasion to suggest to a seller that it might be best to look "elsewhere" for help selling.  One potential home seller comes to mind:  he had a home near Greenfield, on a quiet country road, beautiful acreage, etc.  He first asked for an extra yard sign to place it next to his neighbor's house (a real estate agent).  When he supplied information about his septic system he said something about "young kids who don't know ***** about pumping a septic tank.  He went on to tell me about the yard equipment he had, such as a snow plow, following up with "these ***** flatlanders don't know anything about living on a dirt road in mud season". This is a very unusual circumstance, however.  Most of our sellers are wonderful to work with, have a genuine desire to put forth a great product (their home) and....with our support, are ready to let their homes do the selling!  In the process they have had a professional appraisal, sometimes an independent pre-market home inspection, have their attorney lined up and understand what it takes to provide the kind of exposure needed to compete head to head with listed properties.

Oh yes, I have turned down more than I can remember over the course of almost 20 years.  If I know I can't sell it, why would I take it on..isn't that just more work for no result?  Crazy in my eyes...walk away now, let them list it with a realtor who is happy to "buy" listings and when it expires, maybe they will call you back!

Thanks for all your support, I felt I made the right decision.

I have given up a few and never regretted it.

All the best!

Kevin

Kevin - I think the best line I have ever heard - and I haven't used it yet, but will is:  I'm sorry but I don't think I'm the right agent for the job - I wish you the best of luck getting your home sold. 

OR

It was great meeting you, but I don't think I am able to help you at this time.  I wish you the best of luck getting your home sold.

I think this is a genuine way to say it.  I wouldn't let the seller save face here.  You want them to know in a polite way that you won't take an overpriced listing.  They may not want to believe their home is worth less than what they want, but we're really not serving the sellers best interest by taking an overpriced listing.  We're here to help people sell and buy real estate.  That means pricing the home competitively (and if that means below the market than so be it), as well as preparing the home to show well too.

I don't refuse them.  I just SHOW them the comps, explain the current market and then ask them:  "Do you want to LIST IT, or do you want to SELL IT?" 

The regulars usually listen (one of them exclaimed: "I need a drink!", after I gave him the reality check).  Sellers I've never worked with usually take the listing to another agent who tells them what they want to hear.   I usually get it after it expires a few times and they become realistic.  Then I sell it!

By the way:  Having your name consistently associated with overpriced listings dilutes your worth in the eyes of the Real Estate community, and your other listings will get overlooked as well (on the assumption they are overpriced as well).

Kevin

I walk away from listings all the time, I have a solid reputation for getting the job done and am not going to tarnish my reputation by taking over priced homes.