I recently had a listing that I took for a list price higher than I advised the sellers should ask for. I know, I broke cardinal rule #1.
They were friends of my wife, so I didn't want to insult them. I advised them, as per comps and new construction in their area, that they should list at $249,900. The husband was so adamant that he not lose money (they paid $250,000 for the house 2 years earlier), that I did as they asked.
We signed a 3 month contract for a list price of $269,000 and I got to work marketing their home. I stress marketing, not listing, because I just don't put it on MLS and hope it sells. I do much more. Flyers are printed and distributed, postcards go out in the mail, emails are sent to agents that have worked that particular area, open houses were held every other weekend!, the listing was advertised in a major RE magazine, etc.
What made this more of a challenge was that the sellers put earnest money down on a FSBO and had 3 months to buy. I did all that I promised to try to get their house sold. After 1 month, I talked them down to a list price of $264, 900. We still had no one even come to an open house, let alone have an agent bring clients to see the house. Another 2 weeks later I was able to talk them down again to $259,900. Believe me, it wasn't easy but I did what I had to do. After 2 months, I approached them again. Hesitantly, they agreed to drop the price again to $254,900. Mind you, no lookers at the house at all.
When there were 2 weeks left to their contract, my sellers emailed me asking to be let out of their contract. They stated that they had to get the house sold and wanted to go to a larger, well-known company. They believed that would get the house sold faster. Knowing that they had earnest $ on the line and because they were my wife's friends, I let them out of the contract with two weeks left on it.
Cut to today... 5 months later and with a large RE firm, the house is still on the market! The only advertisement I've seen for it is an ad in a magazine. I don't think their agent even holds open houses (I know, some of you don't think open houses are effective). What got me was the initial asking price the new agent got them to list at....$249,900!!! Sound familiar??
There's a part of me that wants to call the sellers and ask, " You let me go and hired another agent, how's that working for ya?!" Of course, I know full well how it's working for them. It's NOT!! LOL Let me stop revelling in others' misfortunes.
As my title suggests- Don't Overlook the Little Guy! There is a huge misconception that a larger agency means better results than a small agency can supply. I did much more for those sellers than the big company agent is doing. I will continue to maintain my sense of work ethics and my future clients will reap the benefits.
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