I couldn't have done a post about this topic better myself.  Good post!  I have lost many listings by not telling the sellers what they wanted to hear.  They ended up FSBO or listing with another agent, having to reduce the price to sell and still they are not only at me but the the REALTOR world in general (go figure).

Jim, I don't think it's a matter of power...but rather one of setting expectations. I agree that if a seller is having unrealistic expectations, or more importantly if those expectations were never set up front, then a frustrated seller can be more than difficult to work with. I see agents getting defensive all the time because there client is unhappy and wants "more".

I have been fuming about this for weeks myself. Inundating the market with over priced homes, feeding to the fantasy of the seller's that he could actually get more money. I am for leaving a little "wiggle room" but some of these "Agents" are lising so high it should be illegal. 

Listing high is the only way some agents can get listing. They don't know how to overcome objections or provide enough market data to show the price where the house should be listed. They take the path of least resistance...and don't sell the home.

Dave

There are too many agents still telling sellers what they want to hear rather than what they need to hear.  Nice message, as always.

Crossville Tennessee REALTOR - Your Source to Real Estate - Pam Bridges (Good Ole' Rocky Top Realty)  There wer eloads of listigs we did not take because the seller just did not want to hear what we had to say.  Most are still on the market..even a year later.

Maple Valley WA Broker/Owner Colleen Fischesser 425-432-5400 (RE/MAX Select Real Estate)  That's right.  The agent gets crazy on other agents because the seller is on their butt.  My experience tells me that a good agent could see this coming and not go there.  If I met the sellers expectations with the wrong price ...I'd create a Frankenstein.

Patrick Lambert (Century 21 All Islands)  High priced homes are unethical, and very unprofessional.  I mean who does the agent think they are "Donald Trump?"

Joan Whitebook, ABR, e-Pro, CEBA (Buyer's Option Realty Services)  Sellers need to hear what they need to hear, and if not....NEXT!

Jim the thing that amazes me sometimes about consumers it that they really have no clue when it comes to how important picking the right agent is. The agent that will promise all the things that the seller may think will really make a difference is digging their own grave.

Bill Gassett Metrowest Massachusetts Real Estate (RE/MAX Executive Realty)  You are so right Bill.  Many years ago I had a client that lost a child, the memory was so bad that they wanted to start over.  A real estate agent sold them another home.  When asked if she could sell their home, she replied "In the blink of an eye!"  They carried two mortgages for over 2.5 years.  We sold their home for full price that it was listed with that agent for all the time... just before they lost everything.

Jim:  I wrote an article about sellers yesterday.  They are definitely still in denial and I'm starting to get a little frustrated.  Don't get me started!!  If this was Members Only, you'd get an earful.

Jan Wood, Realtor (R) - Nashville TN Real Estate (RE/MAX ELITE)   I'm all ears just keep it anonymous!  LOL!

I know that there will still be agents doing exactly what you are telling them not to do here. Sellers who can't accept reality will suffer, and agents who let them live in the fantasy are shortchanging everyone involved, including themselves. 

LOL!

Think Darwin! The realtors taking these kinds of listings are just wasting money and will go out of business,  and the sellers will lose money/time as well! I love them because they make my listings sell more quickly!

I guess most areas have realtors who "buy" listings.

Sellers can have selective hearing - kind of like buyers. (:

Michael Mackey (R) ABR, CRS, GRI (CENTURY 21 All Islands)  It is counterproductive on many levels.  Other agents soon recognize the patterns adn will not want to work with that agent.

Phil  I agree, but it makes it difficult if you have a buyer.

Frank Sauer (Century21 Garner Properties) I have to remember that buyers can be difficult also.

And the wheel goes round

It's frustrating for sure. But I do sympathize with the seller who is desperate to break even on their transaction.

 Weichert Realtors Bridges & Co.  It does!

Vanessa Krempa (Prudential New Jersey Properties)  We really can't sympathize, we must strategize.  The numbers in the market dictate what we should do,, many agents are afraid to tell a seller when the price is not there.  We must do that.

Jim,

Sellers who still don't get it only want to hear what they want to hear. I have not problem telling them that and I do it as a courtesy to them. We can't produce miracles..we can only use all the effort we have to make it happen if it's realistic.

Neal Bloom-Realtor ® Assoc.-CRS-Weston FL (RE/MAX Premier Associates)   Neal very well said.  We can work miracles if folks listen and everyone is grounded in reality.

 Yes I agre, you set the tone from the beginning. Even if we list it a little higher I make sure the seller knows the real market value of their home so when it comes time to change they know why.

I was actually thinking about writing a post about buyers who have lost touch with reality. There are many realistically and competitivly priced homes in my area that are selling fast yet buyers still want to low ball the sellers.  A buyers market does not mean you can have what ever house you want at whatever price you feel like paying!

Sellers hire us to do a job for them and part of that job is to be honest with them even if the news we bring is not what they want to hear. The market determines value and we work with the market as we do not make the market.

Does not the current market environment and the media encourage higher expectation? The media tells the public that prices are dropping. In many cases the media specifies the percentage of the price decrease. I have not seem a lot of targeted media research, so most people expectations may not be based on facts within their locality.

As a custom builder I am able to price a home based on the clients wants and needs, and simultaneously show them a cost. I have seem that when confronted with the actual cost, most understand. I also see that the cost to build has not gone down, but up.

A reversal is eminent. Unfortunately for future prospects, costs will be higher. I have not seem any material cost fall, mostly due to the cost of petroleum (items like shingles, concrete, and drywall are by-products of petroleum or use a lot of fuel in the manufacturing process). Only lumber seems to be steady, but is also affected by fuel costs (transportation).

The future will be interesting as consumers will learn that home values will always trend upwards.

How can we inform them of this without seeming self serving? That is my question.

Jim, You are the "listing God" today! I am bowing down to you right now! I couldn't have created a more thorough list. Good one!

I know when I was new to the business years ago, I would take any listing with a door and pray it sold. Luckily, I have wised up. I will turn down a listing if the sellers don't let me advise them.  I let them know I am there to interview them, as much as they are interviewing me!

Nothing can make our business unbearable at times more than an overpriced listing, with an unreasonable seller!

The absolute worse client I ever had was a Navy Pilot who thought I was working from a checklist (His!)  We finally parted ways---none too soon, imho.

I just got a listing that I refused to take until they agreed to my terms...I think sellers truly respect the truth when they realize we are willing to "fire" them if they don't trust our judgement.  But, it's never easy in this kind of a market.  It truly is best to be honest, even if it means loosing a listing.

When I get a listing and the homeowners want to price higher then what I've told them, I ask them to sign an amendment for a price reduction in 2 weeks. They agree and I list. 2 weeks later the price is coming down.

Spokane Real Estate - Ross Quintana (Team Quintana Real Estate - MJ McAdams Realty Lic#3015)  In this market it is the kiss of death to price anything even slightly above market.  We are shooting a moving target, and we have to be ahead to win.  The road to hell is paved with good intentions.  My experience has shown me, no matter what I tell the seller on the front side...the seller gets it in their head they can try the price a little while longer.  You can't do that and they will blame you and cost you more business in the long run.

Steve Stoddard (Suburban Realty, Inc. )  You are so right.  I heard a recent seller that got an incredibly low offer and was speaking to the buyer.  The buyer said that he was looking at some homes similar to the one for sale, but they were priced at 75K less.  The seller then asked why they did not buy one of those homes.  The buyer responed no upgrades, no granite, filty, needed paint and lots fo TLC.  The seller told him he was not interested in the low ball offer.  Go back and bid on one of the really horrible homes because it is more than obvious that is all you can afford.

Cameron Wilson: Murrieta/Temecula/ Menifee California Real Estate (Century 21 Tri Valley Realty)  Amen Cameron!  We do not make the market!

Phillip  I agree with everything you said, but I feel we are in a transition period.  This market has by no means bottomed.  In fact this may be somewhat of a dead cat bounce for real estate.  We are now about to enter a period of very high inflation...inflation in the economy lags the rise in oil prices.  Fasten your seatbelts, this is going to get real interesting.

Huntsville, Alabama Real Estate Agent Elizabeth Ramsey Cooper (Remax Huntsville/Madison)  We all have done the same thing, but after a while it just does not make any sense to deal wiht a seller that has a one track mind that is derailed.  We had to start saying "No!"  We also had to view ourselves as the interviewer, not the seller.

Diane Bell, Hilton Head Real Estate, Bluffton (Charter 1 Real Estate, Hilton Head, Bluffton, SC)  The sooner the better is alway best.

Lake Norman Real Estate ~ Diane Aurit (RE/MAX at the Lake)  If you lose gettin ga listing in thei market that is OK.  Make a good impression, and maybe if it doesn't work out, they will call you the second or thrid time around.  That happened a lot to up in the early 90's.

Angelia Garcia (Francesca Realty.LLC)  I've given up on the 2 week thing.  I had sellers tell me not to do it, even if I had it in writing.  We must never forget, we are agents of the seller.  Once we are listed with them, we can advise them, but in the end must do their bidding.  That is why I tell them when we list, I have the right to also fire them.

Way to go, Jim. I however think the real culprits are the agents who take these listings. I can understand if you are taking it with a clear defined stipulation of a trial period then a mandatory price reduction but to take to just for the sake of it is just borderline insane. :) It does nobody any good and its definitely a disservice to our seller clients. Lets take the time to educate our sellers and never list in fear!

Hi Jim - none of my sellers ever call me with any of those questions, ever!  It's all about setting property expectations, and then living up to them.  I have a very thorough marketing plan, and I explain it in detail, as well as the scoop on our current market, what they can expect, pricing - PROPER pricing, etc.

"The truth shall set us free!" - we owe it to our clients to be truthful to them.  If they don't listen to us, we have choices - we can go ahead and take the listing anyway, or we can walk away, telling them why, and move on to clients who really do want to hear you, listen to you, and work WITH you, not against you.

Great post!
Ann

I have a bit of a different opinion.  I do tell all my sellers what I think they should price their house at- and even have them sign it so later they can't whine to me :), I tell them why pricing correctly from the beginning is the best idea, and explain to them that if their neighbor's house has been on the market that long it is over priced.  I also explain that even in a bad market houses that are priced correctly are selling- but in the end I let them put whatever price they want on their home.  And, a week or so later when they have had no showings I lower it when they call upset.    

Unfortunately many sellers are made at the realtors for this bad market.  I know I am working twice as hard to help sell these properties.  But some people can't go any lower in price.

Jim: Another great post. Listing agents must be upfront and homest with sellers and sellers need to listen to their agent. 

Sydney Lamptey (Century21 Future Homes Realty, New York)  Some agents will do anything.  Most of us have a conscience.

Portsmouth NH Real Estate ~ Ann Cummings (RE/MAX Coast to Coast - Portsmouth New Hampshire)  Thank you very much..I agree that it is all about the truth, and choosing to work with those that will appreciate your professionalism and honesty.

Ahwatukee Real Estate Expert, Dawn Workman, MBA (DPR Realty, LLC)  I've done that in the past, but I will not do it in this market.  Why? Because I am still selling homes.  Ohters homes are sitting and dropping, and dropping again in price.

Russ Ravary-- Michigan Homes for sale-- Your local Real estate & Mortgage person (Remerica Hometown One)  Some folks have to realize you do not set the price.  It is the seller's reality, no the listing agents.  All we must do is show them where are the homes selling.

Roland Woodworth "Ft. Campbell Area Realtor" (Exit Realty Clarksville)  It is totally about honesty!  You are so right!

Right as always Jim. I passed on a high priced listing this weekend. Seller's think that market rules apply to everyone but them.

Great post Jim. I see a lot of homes in my area, still listed as if we were in 2005-2006. There are still some agents out there who don't yet know how to market and will take any listing.

I went on a listing appointment recently where I was pretty sure that I wouldn't want the listing.  It was grossly overpriced and had expired a few times.  It is amazingly empowering to move through a listing appointment with no "fear" that you aren't going to get it. 

10,000 listings in Gwinnett County, and about 25% of them are really for sale... the rest of just taking time.

It is amazing that as many deals come together as are coming together.  Buyers are very demanding these days.  Unrealiistic sellers are equally difficult. 

Hi Jim,

Very good topic! I do work to bring sellers back down to planet Earth! Why set them up for failure, just so you can stroke their ego and eagerly gain another listing...knowing full well that the home will probably have a hard time selling at a price point that is simply too high based on today's realities?

Portland Oregon Real Estate >> Wayne B. Pruner, GRI (Oregon First)  I agree.  You were very smart. It is the "Bigger nails, and the largest lot..."  It always is the exception for some sellers! Not their home.

eric  I some times wonder how that works for them in the long run.

Lane Bailey - The REALTOR for Car People (Century 21 Network Realty)  Lane I totally agree. It is funny, sometimes I get the listing I never thought I would get, and guess what it sells.  Some folks will listen to reason.  I love them!

Laura Moore Godek (Laura Moore Godek, PC)  You are so right. It is a very tough time, but we do not need to make it tougher.

Kirk Westervelt - Greenville, SC Realtor (Keller Williams)  Like is all about the golden rule.  Doing unto others as you would have them do unto you!  It has a spirit of reciprocity, and a good clean conscience we all could live with.

For all those wonderfully, to my mind, unethical agents, who "buy listings" based upon what the seller needs, wants, believes...and NOT on actual comps...enabler is the very nicest thing I can think to call you !

The difficulty is that many of the most successful agents in my area "buy" listings.  These listings aren't expiring, the agents just simply start "talking the price down" untiil it finally sells. But these agents around here are WINNING.  They don't put a lot of money in, they don't invest much time, they turn a deaf ear to requests for more advertising - and eventually walk away with the check safely tucked in the bank.  I don't see the practice changing too soon.  I won't tell sellers what they want to hear, I tell them what they NEED to hear and walk away empty-handed. Therein lies the problem.

Sally & David Hanson, Southeastern Wisconsin Realtors (First Weber Group)   You are so right!

 Ruthmarie Hicks (Nelson-Vrooman GMAC)   I agree.  There is that recognition that they are pulling it off and getting away with it.

Jim -- nice post.  What type of facts and how do you present the facts (and when) to home sellers who have unrealistic impressions of their home for sale and what statistics can you provide to them regarding the impact of showing instructions (ex) Appt Required's receive x less showings, etc).

I would bet a lot of agents could use that info to set themselves up better for success.  Thanks.

Scott Wooters   I just engage in dialogue and back that up with local and regional stats.  I use only "SOLDS" for last three months in my CMA.

Nice post - Reality based feedback and candor are key...  IMO, until the sellers "listen" to those who understand the market and provide reality based pricing, sales will remain sluggish.

Jim, We had a kookaburra once that wanted to know, after a showing:

Did you take my dog out to relieve himself and empty the cat litter box?

Chris Butler (Artisan Custom Estates)  I totally agree.  After a while resistance to trying to get sellers to look at their home prices becomes an overwhelming task.  They always feel their own home is exempt from the market correction.

 David Saks (The Real Estate Mart of Tennessee, Inc.)   LOL!

You can please some of the sellers people some of the time...but you can't please all the sellers all the time. 

Jim, good post and GREAT seller demand   wish-list!!!

Kathy "Kat" DeLong, REALTOR (WINDERMERE FINE PROPERTIES/LAKE ARROWHEAD)   So true!  BTW...I Love your signature.  Most impressive!!!!

Great post and comments

Jeff Stinson (Stonebridge Real Estate - Property Manager)   Thanks Jeff.