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Buying a listing!

Buying a Listing!

When I say "buying a listing" most Realtors know exactly what I am talking about. It is when an agent wants a listing, he or she puts an estimate of price higher than the market will bear, to get the listing instead of being listed with another agent at the correct price.

Do your sellers know the term? Do they understand when a Realtor is trying to buy their listing?

A few years ago I realized I was losing listings to agents who were buying listings. So I came up with my own answer. It is a one-page document, just outlining how buying a listing works. I ask them to look at the comps that are used in the other CMA and see if they are the same as mine. It goes on to explain a few of the ramifications.

It works! When you educate the seller, you can get the listing at the right price. It helps you and the seller get the house sold.

Try it and see for yourself!

All the best!

Kevin

Posted by Kevin O'Shea, White Plains, NY Real Estate on 06/04/2008 04:06 PM

Comments (22)

buying, listing, real estate, seller, house, sold, realtor, relator, pricing, market, bear, ramifications, cma, explain, right price

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22 Comments on Buying a listing!

JUN

2008

You are so right. What the sellers needs is the real number, not a phoney number out of the air!

Great observation and good way to win the listing back. That is really serving in the best interests of your clients. Agents are responsible for educating thier clients and this is just another responsibility we have to do out there.

I would rather disappoint them during my pricing recommendation, then disappointing them when their houe didn't sell because of price.

So true Kevin, I use this method in my pre-listing interview and it works better than 9 out of 10 times.

Hi Kevin. You the man. Thanks for the call!

Ken

Good call - that's a great method for both educating your buyer and keeping their businesses. We do a similar thing with our loan customers by inviting them to send us any loan scenarios or GFE's from other brokers so we can help them determine whether they're realistic.

Of course, the trick is knowing to let go of business when someone else is truly able to do better for a client.

There will always be people in this business that will tell the seller "anything" they want to hear, but those agents usually are the ones that sell very little, cause the most confusion and disarray, and are not in the business a year from now. Problem is, they are replaced by the other weak people that find it hard to be professional in speaking frankly with their customers/client base.

Do the research, present the facts and refuse to take listings that are overpriced and you will be way ahead of the game. False presentations gain very little respect from the educated consumers.

"Buying" a listing = extra marketing costs + dissatisfied Sellers + increase in average Days on Market + $0 commission

When agents do what you are saying it is really making the rest of us look bad. However, if an agent wants the property I do not have a problem with them going about it HONESTLY and ethically.

Kevin,

Your one-page document is a great idea. I'm going to add it to my listing arsenal in case I need it.

JUN

2008

You're right! If our clients don't know what those terms mean, and how they pan out its because we haven't educated them!

Kev your page is taking an awful long time to open up - 3 min to be exact! I wonder if its the background photo............oh well........I waited patiently! :-)

Hi All,

Thanks for the positive input.

LIZ: I will have to check things out. I know I have been having problems on and off since the upgrade. THANKS for waiting :)

Good post, yes too many agents are doing just what you have written about, your response could be an answer

AUG

2008

how about posting the letter

AUG

2008

Good post. Those listings generally expire .. and then have some problems down the road because of cumulative days on market. However, there are times when you can go back to that seller... after they have had a "failed" experience with the agent who "bought" the listing and sign them up at the correct price.

Bart: Thank you.

Jon: It is interesting, they don't usually come back, because then they would be admitting they were wrong.

AUG

2008

there is always two sides to the story and you have to point out the differences down to the comparable sales level -- they have to make and apples to apples comparison

Scott: I always try to use the best comps available and in the letter I state that and ask if the other Realtor used the same comps and came up with a different price.

AUG

2008

Kevin thats a great idea - we so often think the public understands the inner workings of some realtors, the lingo - terminology - and the consequences......how great to approach it head on!

Also wanted to let you know I went to church today for the first time in years (other then weddings and funerals)........and your comments spurred me on...:-)

Kevin - if explaining the comps doesn't work, try this. When the seller tells you that Agent Listing Buyer states that he/she will list for so much more as them to ask that agent this question:

How positive are you? Will you put a clause in the listing agreement that automatically voids the agreement if you ask me for a listing price reduction?

I used it for the first time last week and the seller called me this morning and said to bring my sign on Tuesday.

SEP

2008

Mike: I love that idea.

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