Special offer

:: Does my house look fat in this price range? ::

By
Real Estate Agent with RE/MAX Crosstown Realty Inc

We are told we need a thick skin to work in Real Estate, at least as thick as our head.


There are always stories we as Realtors can tell about unruly or unrealistic clients that drag us through the muck and in the end leave us nothing positive to show for our efforts.


In most cases of tension between us and a client we can look back and see that we jumped into that muck deliberately and with both feet and have no one to blame but ourselves. 


In my community right now there are many overpriced listings with withered and leaning signs on lawns that were buried in snow drifts most of the winter. Listings that the agents likely knew were overpriced when they took them as most will have done their due diligence to deduce the true market value of the property.


Knowing that, they still made a conscious decision to list the property at a price reflective of the client’s expectations and not the facts the professional efforts and resources of a diligent Realtor would reveal.


Any listings are better than none is popular logic in the deep freeze of January right?  The reality is many of those listings will expire and many peoples image of that Realtor and our industry gets tarnished as a result, because an agent chose to act on what the client wanted to rather than needed to hear.


Taking a call from the client to tell you they are canceling or not going to extend the listing period because they have lost all confidence in you would seem to me to be a bigger (and more expensive) kick in the pants than having the confidence to walk away in the beginning when told “if you don’t list our house at the price we want we will find someone who will.”  Imagine shopping around for a doctor until one finally tells you “you are at your ideal weight”.


If you have any self doubt in walking away when given that ultimatum rather than entering into a doomed client-agency relationship don’t worry, it subsides each time you check the status of that overpriced listing over the next few months. You may smile as you drive by that home over the next few months and notice the color of the sign on the lawn seems to keep changing.


Don’t be afraid to give the strait dope when asked “does my house look fat in this price range”.  Tell people what we as a profession are paid to tell people...the simple facts be they warm and fuzzy or bitter pills. If every Realtor did this then people would be quicker to fall in line with realistic expectations, the market would be healthier, and the entire industry would be held in higher esteem as a result.

Posted by

 Mike Montague

  

Barrie Power of Sale Listings

Barrie home values

 

 
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Happens all the time!  I just commented on Karen Georges post on getting beat out for a mortgage by a company that was quoting something that wasn't available.  I tell these people the straight up truth and tell them that when their home expires and they're really ready to sell it, to call me.  Some do, but some don't but one way or the other I don't get stuck with a home owner (almost said seller) who was going to end up mad at me!

 

R.B.  "Bob" Mitchell

ValueList Real Estate Services, inc. 

Apr 10, 2007 05:13 AM
Derek and Mariana Wagner
The Artisan Group- Keller Williams Premier Realty - Colorado Springs, CO
The Artisan Group - Colorado Springs REALTORS®
HA! That is the funniest headline I have read in a long time!! Excellent information, Mike. We always "tell it like it is" but I may need to use that line next time ... :D
Apr 10, 2007 05:13 AM
Suzanne Sands
Pavao Real Estate - Somerset, MA
Somerset MA Real Estate
Hi Mike- Good post! I have turned down more listings because of unrealistic seller expectations. It feels good when they call 6 months later to say I was right & would I still be willing to work with them!
Apr 10, 2007 06:09 AM
Cindy Richter
Interior Motiv Home Staging - Flower Mound, TX
IRIS Dallas, TX Home Stager
Love that header and what a great line about finding a doctor!  I (a stager) am usually called as a last ditch effort and asked to perform my magic on a house so Realtors won't lose the listing and because it has sat for weeks with out selling.  After hearing your story, I can understand a bit more why they wait.  It's the sellers and ther expectations!  Thanks for your comments. 
Apr 10, 2007 06:33 AM
Heather Saul
Weichert Realtors Hoey Group - Wildwood, NJ
Mike...  good point.  You have to present the facts and not feed sellers the fluff they want to hear.  It makes it much easier to get everything out in the open from the start. 
Apr 10, 2007 06:48 AM
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro
Very good advice.  I have smiled as I drove by and saw the yard in the sign for over a year.  The listing I am talking about happened to be on the main road in to our subdivision and I was so glad I was honest when it went through several agents.  I love having listings in my own subdivision but not if they are going to rot on the vine.
Apr 10, 2007 08:00 AM
Anna Wiseman
RE/MAX Lifestyle - Denver, NC

Hi Mike,

I could not agree more. Thank you for the blog.  Sometimes it is hard to turn down a listing, but I do find it necessary sometimes.

Apr 10, 2007 08:52 AM
Larry Estabrooks
Independent Real Estate Agent - Moncton, NB
100% representation means NEVER DUAL AGENCY !

Great attention grabber Mike.
Nice star.

Apr 10, 2007 08:53 AM
Christy Powers
Keller Williams Coastal Area Partners - Pooler, GA
Pooler, Savannah Real Estate Agent
What a great post. How true. It's a tough market right now. I don't think sellers realize what happens when they price their home unrealistically.
Apr 10, 2007 09:16 AM
Julie Ferenzi
john greene Realtor - Plainfield, IL
Julie Ferenzi

I LOVE LOVe LOve the title!!! You got my attention!

What an eloquent way to describe the market and the situation agents are faced with sellers every day! 

I turned down my first and listing because the seller wanted to over-price the listing and refused to "give" his house away.  I am so happy I turned it down.

Thanks for sharing this great advice and a wonderfully written post!!!

 

Apr 10, 2007 09:40 AM
John Pontello
Rose Realty Group - Powder Springs, GA

That is some good advice to hear as a newer agent, I'll keep that in mind.

-John 

Apr 10, 2007 10:05 AM
Ana Connell
G & C Properties - Burbank, CA
Burbank Real Estate Agent
I'm still trying to find that doctor! 

Excellent post and thank you for giving me(a real estate newbie) a valuable perspective.  It's good to remember that your end goal is not getting the listing but being able to find a buyer and close the deal!

Apr 10, 2007 10:10 AM
Craig Schiller
Trempealeau, WI

THAT blog title is one of the BEST I have EVER read here.

VERY CLEVER... oh and the blog was good too.

But that title!

Looooooooooooooooooooooooooooooooooooooooooved IT!

Me

Apr 10, 2007 03:02 PM
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate

Pricing homes competitively in a declining market can be challenging for agents and hard to accept for sellers. What they need to understand is that 'the market' doesn't care about how much they need to walk away with. If they just can't accept that, there's no point in exhausting time and marketing resources on an overpriced listing.

Apr 10, 2007 05:24 PM
Kaye Thomas
Real Estate West - Manhattan Beach, CA
e-PRO, Manhattan Beach CA
Mike.... very clever title.. I think it takes time in the business before you figure out how much it costs to keep those overpriced listings..often the cost is about more then money..
Apr 10, 2007 07:32 PM
Debbie Cook
Long & Foster Real Estate, Inc - Silver Spring, MD
Silver Spring and Takoma Park Maryland Real Estate

Congratulations on a Great Post, Great Title and very Timely Subject.  I have BEEN THERE And DONE THAT!

Learned my lessons in the early 1990's with this type of market.  What you say is all so TRUE

Apr 10, 2007 11:00 PM
Antoinette Scognamiglio, GRI, ASP
Coldwell Banker Realty - Mountain Lakes, NJ
There's no substitute for EXPERIENCE!

Great post!  HYSTERICALLY FUNNY HEADLINE! 

I recently heard another great line from a homeowner who was suggesting an inflated price...

"I need someone who will REALLY work with me...WILL YOU BE WILLING TO CUT YOUR COMMISSION AT THE CLOSING TABLE IF I DON'T NET ENOUGH ON THE SALE???"

Ummm, good luck & buh bye!

Antoinette

Apr 11, 2007 12:12 AM
Roger Stensland
Keller Williams Realty Puget Sound - Maple Valley, WA
Let's Move!
I didn't see this the day it came out.  It's great!  Very catchy title followed by good information.
Apr 11, 2007 03:09 AM
Lee Krepps
Okanagan Desert Country Realty - Okanagan Valley, BC
e-Pro

Amen, Amen, Amen!!!  Happens to me once a week at least... always politely decline and walk away.  Great post!

 

Apr 11, 2007 04:31 AM
Jessica Hughes
Ambiance Staging - Boulder, CO
Just had to say I loved the title of your blog.  Funniest and wittiest I've seen in a while :)
Apr 15, 2007 04:19 AM