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Listen To Your Instincts and Don't Take The Listing!

By
Real Estate Agent with RE/MAX Elite Services, Nurit Coombe Team MD102148

I spoke to an agent the other day that told me he went on a listing appointment where the owners wanted to ask as much for their home as several other homes in the neighborhood. Though the houses were nearly the same square footage, that’s where the similarities ended. Each of the other homes had tens of thousands of dollars in upgrades that this home didn’t. Upgrades like finished basements, decks, hardwood flooring, maple cabinets, granite countertops, brick facades, landscaping, and more. In addition, the home needed work, which was an issue itself. By the time he had left, he had stated his case. He recommended staging the property and pricing it accordingly. In the end, it’s up to them if they want to spend months on the market at an inflated price or take his advice. He will politely refuse to work with them if they want to list at the higher price. They can waste their time, but not his because he will listen to his years of experience. Bravo.

Times have changed. Instead of over zealous buyers frantically scrambling to buy up real estate wherever they can we are seeing apprehensive buyers shopping for months prior to writing low-ball offers on even the best listings and rightfully so. If you’ve been in the business long enough, you’ve seen it before. But, even the experts are surprised at the market climate that we have today and sellers need to take heed.

Anyone interested in selling a home needs to know that price and condition are more important than ever before. Buyers are taking their time to find the best deal. Predictions of even more depreciation in the coming months could make buying now a losing proposition. As agents we have insight into the psyche of the people that are purchasing homes in this volatile market. If as a buyer’s agent we couldn’t recommend our purchasers buying the home, then how can we list overpriced homes and expect that people will buy them?

Sellers should understand the following before putting their houses on the market:

1. We have an obligation to tell them the truth about market values.

2. Buyers and their agents are well educated and in-tune with property values.

3. Home prices have to be factually substantiated to buyers and appraisers.

4. Even in tract housing communities there can be differences in values of homes due to the vast array of building materials, appliances, and options that each home can possess.

5. Staged homes that are priced properly sell for more money in less time.

Even though the aforementioned statements seem like common sense, we still see overpriced listings in bad condition that haven’t been staged. I think we can take a lesson from my associate and listen to our instincts when it comes to working with sellers that want to overprice. Our inventory is too high as it stands. Why add to it with properties that aren’t going to sell and will skew the statistics even more?

Comments (14)

Kelly Bovi, Charlotte Area Real Estate
NavMak Enterprises, LLC - Charlotte, NC

I agree, valid points! Wish  more sellers would understand that.

May 21, 2008 03:19 AM
Dean Moss
Dean's Team - Keller Williams Realty Partners Chicago IL - Chicago, IL
Dean's Team Chicago IL Real Estate Team

Meyer -

Great post, and very true!

Our Team has turned down six listings on the basis of an unreasonable asking price since the beginning of the year.  Most have listed with another agent - and they still have not sold!

Other times, we take a listing at what we feel to be a market-friendly price - but generate little interest!  Sellers resist further price reductions.  A few times, we've mutually agreed to part company.

Price and condition are not only IMPORTANT in today's real estate market - they are CRITICAL!

I'm sure you would agree!

DEAN & DEAN'S TEAM CHICAGO

May 21, 2008 03:19 AM
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Right now, my listing inventory is down.  I've passed on 6 out of the last 7 listings that I've gone on because the people didn't want to be reasonable with their asking price (considering the current market conditions).  The one that I did take, I wish that I hadn't because even at what I considered to be a "reasonable" price, it's sitting there!

The only thing that happens when you over-price a listing is that the seller ends up getting mad at you.  I'd rather not have any listings than have a bunch of people stewing at me because their homes haven't sold!

Bob Mitchell

ValueList Real Estate Services, Inc.

May 21, 2008 03:22 AM
Andrew Baumbach
Homestead Realty Inc. - Milwaukee, WI
Greater Milwaukee Real Estate

All we can do is show them the current market. As frustrating as it may be, these are our market conditions.

It makes no sense to try living in fantasy land, where they think we can get 2005 prices and it will sell in 5 days for full price, it's just not the reality of today.

I only hope the people that I have passed on will remember me, and that I was am honest agent in tune with todays market, and I am the one to call after an incompetent agent fails to sell their home at an inflated price.

May 21, 2008 03:23 AM
Melody Botting
Broker Associate PenFed Realty - San Antonio, TX
You Deserve The Best

Education is key.  When you have educated the seller regarding the market they have no one to blame.

May 21, 2008 03:28 AM
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Meyer, good advice.  Maybe your colleague can be their third agent - sounds like that's what they'll have to go through to come to their senses!

May 21, 2008 03:29 AM
Jim Crawford
Long & Foster - Fredericksburg, VA
Jim Crawford Broker Associate Fredericksburg VA

Well said and stated.  I agree with you 100%!  We need to ask ourselves why?

May 21, 2008 03:32 AM
Jim & Maria Hart
Brand Name Real Estate - Charleston, SC
Charleston, SC Real Estate

I cant agree more with you, Meyer. I appreciate you sharing with everyone all your great points. Take Care, Jim

May 21, 2008 03:33 AM
Audrey June-Forshey
RE/MAX Realty Services - Darnestown, MD
GRI, Gaithersburg, MD

Meyer, I need a bigger font.  What's up with making me go get my glasses?  Oh yeah, good posts.  I think being the next agent is a good thing, because most sellers will finally listen.  If not, don't take the listing!

May 21, 2008 03:54 AM
Meyer Leibovitch
RE/MAX Elite Services, Nurit Coombe Team - North Bethesda, MD
REALTOR Boyds, MD

AJ-Sorry about that font! I changed it just for you!

Melody-You are so right! I think some agents could stand to brush up on their pricing skills too.

Bob-I am the same way.

May 21, 2008 04:19 AM
Patricia Ebrahimi
SHOW SMART! HOME STAGING & Color Consultant - Rockville, MD
Home Staging the Washington DC Area from Rockville MD

Mr. Leibovitch...may I call you Mr. Leibovitch?  I want to.  You write and think like a grown up in this market.  Very resfreshing!  As a professional home stager, I get so tired of people, Realtors included sadly, asking if staging is really necessary for this $499k or that beautifully upgraded vacant property.  Then, the price issue...sellers agreeing to drop prices, but just not quite enough to get the traffic, if and when there is some, to write contracts.  Education is key.  Thanks for getting the word out on both counts.

May 22, 2008 01:06 AM
Meyer Leibovitch
RE/MAX Elite Services, Nurit Coombe Team - North Bethesda, MD
REALTOR Boyds, MD

Patricia-

 

Thanks for the kudos. I visited your website and you are definitely a talented stager. If I list any vacant properties, I'll be sure to recommend you. BTW-call me Meyer :)

 

 

 

May 22, 2008 02:56 AM
Patricia Ebrahimi
SHOW SMART! HOME STAGING & Color Consultant - Rockville, MD
Home Staging the Washington DC Area from Rockville MD

Thanks Meyer.  I'd love to work with you, and thanks for stopping by my website!

May 31, 2008 02:33 PM
Patricia Ebrahimi
SHOW SMART! HOME STAGING & Color Consultant - Rockville, MD
Home Staging the Washington DC Area from Rockville MD

Oh BTW I have recently been doing virtual tours for properties for sale.  For properties I stage, the tours are complimentary.  For others there's a fee involved.  Call me if you need one and I'll email you a sample.

 

May 31, 2008 02:56 PM