Real Estate Blog - Update on an Overpricing Situation

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Update on an Overpricing Situation

Back in February, I blogged about a situation I was in with a potential listing who wanted to overprice their listing. I have an update for you.

Just to refresh your memory, I said the house barely comp'd at $350k and that it would likely sell for less, but the sellers were in the red at $350k so they wanted to list at $369,900 (after I very bluntly said no to $375k). They decided to list with another agent.

It's now 3 months later, and after reducing the asking price to $349,900, they sold the house yesterday for $340k. So, would it have taken 3 months to sell if it was priced correctly to begin with? Probably not. Just another example of how a Realtor who knows their market never knows the market as well as a seller who thinks they know it all.

Congrats to the sellers who sold while in the red!

Posted by Donna Harris, REALTOR® & ASP - Hill Country Austin Lakeway Homes on 05/29/2008 12:00 PM

Comments (13)

seller, overpriced listing

Originally posted at: Austin TX Real Estate - Hill Country Austin Lakeway Homes for Sale: Update on an Overpricing Situation

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13 Comments on Update on an Overpricing Situation

MAY

2008

Hi Donna,

I had written up a sheet on Buying a Listing back in the early 90's.

I have recently pulled it out to put in my CMA. Basically it talks about agents who BUY a listing by overpricing it.

It helps a lot with "those" listings.

All the best!

If only sellers listened to us more ... I gave up a listing last year, twice ... same scenario. I wouldn't take a listing so grossly overpriced. It still hasn't sold, and it is just up on the market again for $50,000 MORE than last year, with the same agent who couldn't sell it last year (and our market has been great). I really hope they can sell it. They are a family member, and I told them I'd rather not mess up the relationship but that I was glad to have them give the listing to someone else. I didn't even want a referral fee, because I knew what could happen, if I was involved in any way.

Hopefully buyers and sellers will do some homework and figure out how much it's worth to them, to have a realtor who is honest and hardworking, and only has their best interests at heart, even if it means telling the whole truth and losing the business, rather than tell them what they want to hear, and waste time and money and turn it into a stressful relationship.

I don't understand the logic of some sellers. I think they just want their opinion from us, just in a different voice. But when our opinion differs we suddenly don't know what we are talking about. Hopefully next time they will listen to an agent that is trying to look out for them.

I've seen so much of this lately. If only the seller would listen to the professional- they just might know what they are talking about.

Donna, great post. Entertaining but sad for both them and you. You could have sold it correctly 3 months ago and likely gotten them more money.

Kevin, I've never had anything in writing about "buying" the listing, but I do talk about it in my presentation. It would be nice to have something in writing to leave with them... wanna share?

Sylvie, I feel for ya... I have the same thing going on with my in-laws right now. I'm not getting a referral fee because I didn't want the friction. Plus, my Father-inlaw was licensed back in 1979 so he knows best!! LOL!

Joshua and Kathy, Exactly, but sadly, not the case.

Rob, But these sellers were out of state investors. How could they not know what they were doing? Of course they were right! (said, tongue in cheek)

Steve, I completely agree, but alas, why would they listen to little 'ol me?

All I can say is that AT LEAST it sold...... Buyers are not forgiving these days.

I run into sellers frequently who are pushing the price, yet need to sell fast. Not a good combination.

Don't you just want to go back to those sellers and say "I told you so"? I know you would never do that but I always have the urge when I have that situation happen to me.

Donna, You are not alone! I had a listing for 10 months and I repeatedly told the people they needed to come down on price because they were way over market. They kept holding out and holding out and finally the listing expired at the end of March. They came back to the mountain May 1. They immediately listed it with another agent for 30K less than I had it listed for. It sold in a week. I don't get it but people refuse to listen to what someone they have a relationship with say, but along comes someone else and they listen. Go figure!

Donna - I agree with you 100% - Walk away from the listing...

JUN

2008

Donna, So very true. But congrats to you for not stooping to take a listing that will just sit there. Recently I had a buyer that put a contract on a home. They wrere asking $124k and the contract was for $120 with a few concessions. When the appraisal came back at $115k the whole thing fell apart. The home was $10k over priced from the start.

Being so excited to have a listing rather than to be the Professional Consultant can in fact hurt your business. I tell my Realtor-Partners all the time to not be like the excited dog wagging its tail to get the business. Even if it will be the only listing you have. Make sure you price the home to sell. And, in todays environment, that is getting harder and harder.

Anytime a Realtor-partner needs help in what a property will sell for, I am glad to help. I call my Appriaser and ask him for a few comps and what he thinks without going out there. He does this for me for free and his opinion along with the data you collect, should convince your seller as to the value they might expect.

GREAT post. I am working with a buyer now who is contingent and being impossible to their Realtor regarding how to price their current home. I always breathe a sigh of relief when a pro is handling it! Way to remind everyone WHY a great Realtor is always a win (even if they want to price your home lower than you do!)

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