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No thanks Mr Seller. I'd rather work on my tan!

Hi there. Today I feel inclined to write about one of my pet peeves. OK it's not colored post titles, how to blog, signature spam in comments or any of those "hot" topics. It's actually about real estate and pricing.

I've been an exclusive listing Broker for 13 years, in my market, Poinciana Fl, and pricing properties correctly is my expertise. There's not too much I'm good at in life but when it comes to pricing, listing and getting homes sold, I'm an expert. My success is simple, price it right and sell it. To me, nothing is as important as pricing. It will overcome market conditions, location and property condition. The reality is there are only two things that we have control over, property condition and pricing. So you have to get them right.

In my market, values are declining and they are declining rapidly. A property that was priced correctly 60 days ago may now very well be overpriced. So it is imperative that we set the right figure from day one in order for the Seller to maximize their selling price. And we have to continue to monitor the market and make adjustments when necessary.

So how do you arrive at the right price? Well, I'm fortunate that most of the homes in Poinciana are very similar. When I'm looking at recent sales it gives me a real good picture of what similar homes are selling for. Also, by arranging recent sales in order of most recent and factoring in pendings it will show me the current trend. If the most recent sales were at $195,000, $197,000, $200,000 and $205,000 then it is very easy to see a declining market. If the current pendings are also in the lower range them I need to price my listing in the lower range. Maybe $195,000. The other thing I must look at is what's on the market. If there are 50 other similar (age and sq ft) properties on the market, from say $189,000 to $229,000, I need to factor that in as well. Pricing is not an exact science but is an acquired skill.

My goal is to always have my listings in the top 10 (lowest priced) when another REALTOR® is doing a MLS search. I achieve this by Range Pricing. In the example above, if I knew market value was around $195,000, I would Range Price the property from $189,000 to $199,000, using $189,000 as the list price. What I have now done is put my listing in the number one position of similar properties. This means it will get shown more often and assuming the property condition is correct it will sell. And will usually sell close to $195,000. If I had priced it at $199,000 hoping to sell at $195,000 it would have moved it up to the middle of the list and would not be shown as often, if at all. Now, I know Range Pricing is controversial and is not doable in all markets, I'm just using this as an example of how I price.

The point is to make sure your listings are positioned aggressively, in the MLS, so that they get shown. If you make a mistake on pricing it's better to be too low than too high. A listing priced too low will usually adjust itself by multiple offers and negotiations. If it's too high, it will just sit. And the problem with that is that when you do finally get a price reduction the market value may have decreased even more. Then you end up chasing the market downward but never quite catching up. Sellers need to know this.

As REALTORS® it is our job and obligation to be brutally honest when it comes to pricing. The quickest way to fail, as a listing Broker, is too take listings that you cannot sell. It's important for Sellers to know that REALTORS® and Sellers do not set market value, the market does. And the market is what it is. We can't just miraculously sell a house for 10% more than market value because we are expert marketers or because that's how much the Seller feels his house it worth. It ain't going to happen. To take a listing that is grossly over priced is nothing more than a waste of time, money and effort. So don't do it. Give the Seller the facts. If they are not in agreement or can't sell because of too much of a mortgage or whatever, then it's best to walk away. Here are some good phrases you can use to get your point across. Some are mine and some I've taken from others.

"I'm not here to tell how much your house is worth, I'm here to tell you how much it will sell for."

"I would rather turn you down now than let you down later."

"The market is what it is."

"It's not your house, it's the market, and the market says this is the value."

"I'm not willing to finance your fantasy." (Laurie Manny)

"I'm sorry, I can not sell your house at that price. I would be lying to you if I said I could."

And my favorite.....NEXT!

That's it, Broker Bryant's crash course on pricing. This is very basic and I'm sure you have thoughts you can add. What are they?

**Picture courtesy of Nick "Duh" Appraiser. Sorry, I had to use it!!!

Posted by Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc on 04/26/2007 07:15 PM

Comments (78)

range pricing, right price, education, opinion

78 Comments on No thanks Mr Seller. I'd rather work on my tan!

APR

2007

Reserved Parking For "The Lovely Wife"...TLW...ROAR!

Blog Boy...

LOL @ the title and pic. Love your intro too :)

Okay. Now which member came up with "I'm not willing to finance your fantasy" ?? Was it Laurie Manny that said that ?? Love it no matter who said it.

Great post...NEXT...LOL.

Did someone say graphics? ROAR! SVW.

*Graphic Courtesy of Mariana Wagner :)

Very informative... points I will certainly use. By the way, the picture "IS" you!

This one is my favorite!

"I'd rather disappoint you now than disappoint you later."

And then I use "Next"

Excellent post BB!

I will memorize those phrases. Hope your market picks up. I've talked to several people this week who are wanting to move up here to Atlanta from Florida. Your market can really put a damper on our market.

You may have some pet peeves but you just get better looking everyday. I am not sure that you are my type though.

This topic is coming up more and more in our office. Thank you for the great comments that can help overcome seller's pricing objections! Less than 2 weeks on Active Rain and I'm already hooked on Broker Bryant and TLW!

Thanks again ya'll.

I would add - that just because the market goes up (which it sometimes does) does not mean it is time to raise the price.... if it did not sell at $769,000 it will not sell for $895,000 - hence I will have my listing of a lifetime :o)

Hi Bryant-

Great reminders. I'd like to post this to my buyer/seller information file with all credit to you as author. May I? Good post and well articulated as usual : )

BB : My favorite answer to the Seller who insists on selling at a price that can not be obtained. :

Agent : The market shows the value of your house to be about $200,000
Seller : I won't list my home for less than $250,000 I think its worth it from what I've seen
Agent : $250,000 huh? I see your point. I propose that we list the home not at $250,000 but at $375,000.
Seller : Really, do you think we can get it?
Agent : No. And we can't get $250,000 either but if your going to Dream you might as well Dream Big!

BB - I didn't realize you had already gone and had the 'procedure' done?

Bryant, so I take it your area is flooding now with homes being placed on the market more so than selling? Which brings the prices down? How many homes are being put on the market now verses sales in the month? We have experienced this for months now here. Even years to be honest about it. Good information. OH, Please be careful and don't allow anyone to put a hole in your air chair, you don't have your life vest on. Do you? Roar....LOL....

Yup. He's gone and made himself "Lovely" LOL.

Blog Boy...Would you like to borrow my lipstick? I think the color would be purr-fect on you :)

Bob...Get off my ROAR. LOL.

TLW...ROAR!

I just wrote a similar blog asking if you are priced to sit or priced to sell. It always makes me sick to hear sellers claim what they want not what the market wants. Then again, they are the first to fire the agents and blame them for their pipe dreams!

Hey BB.. way to keep it real. great tips on pricing. i liked the list of comments at the end, although i was constantly distracted by your body ;) seriously. good stuff and realistic. you're sellers may not want to hear it, but you are honest.. and that integrity is priceless.

Herb's comment above was funny :) might as well dream big :))

BB -

I appreciate the post, it is very informative. And you are correct. . .if it's over priced to begin with, by the time you finally get a price reduction it's too late. I will bookmark this one, I like your comments and will have to get them down.

Oh, by the way. . . I think you would have looked better in an itsie-bitsy, teenie-weenie yellow polka dot bikini but the one you have will do!

Very nice. My favorite "the market is what the market is" is what I tell folks. The market is an agent's best friend. It's objective, impersonal and always right.

I was just on an appointment last week with someone trying to sell a condo and buy a new single-family home. Values are down about 10-15% since they purchased ... and they financed 100% ... so they would have had to come to closing with about $25-30,000. It's no fun helping them realize they probably can't move to a new home, but in the long run that kind of honesty wins clients and referrals.

That is exactly what I think and it also depends on the sellers motivation.

The question is ...do they want to own it or sell it?

Thanks for a great post. I also will have to put these phrases to work. We are experiencing a very similar market here in the Inland Empire section of California. Some sellers are still living in 2005.

How about "I'm not here to buy your listing, I'm here to get your house SOLD!" - I have been turning down listings because I am not willing to loose money marketing these and putting my reputation on the line. It's not worth it - I MUCH RATHER WORK ON MY TAN!

UCBB: You DO have a way with words—your way with bikinis is—well—different! It’s not the bikini—but the head….

Jay

Neal, Right on bro! The reality is some folks may not be in a position to sell right now. That's why it's so important we give them this info. They need to make or change plans accordingly. IMO there is nothing worse than giving a seller false hope.

John, We must be honest. If they can't afford to sell then they can't afford to sell. We can't change the market to fit their needs or wants.

Lenn, I know you and I are on the same page. Our job is to deliver the facts NOT make them up.

Cynthia, Yellow polka dots would show off my "baby fat" :)

Nick, Thanks again for the picture. I just had to use it. I'm kinda cute, don't you think?:) You are right about integrity. It's valuable and it one thing no one can take from us. And if you lose it..well It's very very hard to get it back.

Christopher, That's why it's so important to not take an overpriced listing. It will kill your reputation.

Hun, Sorry, my feminine side was really strong today PURR!

Bob, we have over 2 years of inventory on the market. It's bringing values down quickly and drastically.

Rich, The pills weren't working anymore. Plus they had a 2 for 1 special on boobies last week:)

Herb, I've heard that before and LOVE it. It's so true. If you're are going to dream might as well dream big. It's just they won't be doing it with my sign in the yard.

Keli, No problem. But do give credit. Thanks. Or better yet, rewrite it in your own words. That way you can take credit.

Thesa, That's a good point. I think you will have the lifetime listing..well...for a lifetime. I'd be afraid to sell at this point. It's your good luck charm.

Lisa, Thanks for reading. And welcome to ActiveRain.

Teresa, Better than the diaper?

Tim, Yep can't sell, can't move. I hear it everyday.

Monika, NEXT is definitely my favorite word next to NO!

Gary, You want me don't you? :)

Outstanding! Great advice and scripts. I'm also only a listing agent - we work a lot alike but you are much better looking.

Nick, 2005 is definitely not the place to be living if they need to sell.

Ines, I like that line. Want to join me in the pool? Does Rick have a bikini?

Jay, What you don't like my new look? It is good for getting folks to stop at my blog. Unbridled marketing. After all I AM a Codger.

Linda you snuck in on me. I think the bikini is very attractive. Keeps riding up on me though. How do ya'll handle that? Maybe I should go for the thong next time?

Sellers are better off taking their homes off the market if they are really not motivated to sell.

Broker Bryant,

I wonder if I went back and re-read all of your posts and comments if I would have enough knowledge to sit and pass the exam for my Realtors license....hmmm? By the way, you look so HOT and.....soooooo good looking tonight. :0)

Yeah! Our favorite was "I'm not willing to finance your fantasy"! We cracked up over that one. We like to tell people that we want to sell their home not just list it and hold onto it. Thanks for sharing your tips on pricing. Good stuff! Don't believe that you're not good at much - you sure can wear a bikini!!!!! :)

Awesome! I'm afraid I need to copycat you on some of these. Practice makes perfect, so I'll stand in the mirrow and shout "next"!!!

I just had someone tell me, "you're too nice" ... I have been brutally honest....(not disrespectful... but brutal) and this current seller "knows" more than me...and her tax man does too!

I know there is always a lesson to be learned in why these kinds always drop in MY lap.

Get a bat? haha?

I think I heard it from David Eiglarsh (is that right?) who has gone silent on AR...he proposed pulling out the paperwork, putting in a 10 year contract term and 15% commission-why? Because that's how long it will take to hit your price and that's how much I'm going to spend getting it to happen. Love it. =)

The less obnoxious version for me is: 'Would you be willing to pay $xx for your house today?' (and they usually say, 'Of course not!'). 'Because when no one purchases it at this price, you've just bought it back.'

Ok, I laughed quite loud with the fantasy line. I have used almost all of the rest - but that was the best one.

OH NO! Blog Boy....no hairy men in bikinis PLEASE!! So when are we racing those bad boys in your lake?

Bryant - Nah it looks like I might be writing an offer on it this week - it breaks my heart but I showed it today and the buyers are in love.... we just have to get some due diligence done and it will be history.

You're looking great---guess all that time at the gym has really paid off!

Great article on pricing. I love the scripts--especially the one about not being willing to finance their fantasy. I've always just told them I could have more fun on a vacation than spending my hard earned money advertising their overpriced house. I like the ring of yours better.

Bryant,

I appreciate that you cover this topic frequently as it is something that is huge in my life. I have learned in my first 16 months of real estate that an overpriced listing is a liability to everyone involved.

Where'd you get that swimsuit? I want one too!

Fran

Bryant - I can't agree with you more. We had a good day - believe we got things priced right and have a potential buyer to right an offer, hopefully tomorrow for cash. I'll keep you posted. Just got in at @9:30pm.

Will get you everything tomorrow - thanks. I owe you won (and I am a big believer in the Law of reciprocity)

BB: I have to be brutally honest....I don't like you in that bikini....You have a better figure than I do! (jealous?) haha.

APR

2007

Now that's what I'm talking about!!! Great post.

I love the the last few lines. Priceles... (no pun intended :)

Yes Billie, that is my line "I am not in the business of financing fantasies" and it is a good one and sooooooooo true! Nice Yacht BB, going for a spin on the lake?

Great post with some great advice.

I must admit you look better with your shirt off that I would have ever suspected.

That is the hardest thing for inexperienced agents to learn. Do not take overpriced listings. You loose time and money and you let the seller's down.

I am not going to finance your fantasy...LOL....LOL.... LOL I love it! Commitment, comprise and competive the three C's. As always excellent post. Thank you for all the encouragement!

Laurie...

After I thought about that last night I realized that it had "Laurie Manny" written all over it.

It's my favorite line. EVER :)

TLW...ROAR!

Hi Bryant...Loved the blog and have added "phrase #1" to my future vocabulary. How true!

Regards...Jay

To know your market is to love your market. You are going to sell homes when you know what is going on! This is an excellent "marketing plan" more than it is a guideline. You can have the spiffiest marketing plan in the world but it will not sell overpriced listings!

Great post. It has been really slow in some areas. There are sometimes no recent comparables at all. I was looking for comps and the most recent I could find was january 06......

Well good morning evey one. OK I have to come back later. Trying to get a deal closed this afternoon. As always thanks for participating in this discussion. Our comments should help some newer REALTORS(R) undersatnd how important pricing is if you want to succeed in this business.

"If I took out full-paged ads in the Washington Post Every Day, Put up 3 Billboards and Made 500 phone calls a day - Your house would still Not Sell at this Price!"
or
"You don't want to be in the LIST FOR LIFE club, Do you?

Really Great and Educational Post BB

As usual, another great post by BB! I'll be referencing this one later for sure! Thanks.

BB - great post and great discussion in the comments as always. I love the phrases at the end - and I use "I would rather turn you down now than let you down later.", and "It's not your house, it's the market, and the market says this is the value." I've used variations of both of these for years now.

I think you need one of Laurie's "vrrooom" machines that she wrote about if you're going to hang out in a bikini working on your tan all day. I wouldn't mind working on my tan here, if only it weren't raining AGAIN and in the high 40's for temperatures. Ugh......

Ann

Too funny "Mr. Feature Kind" Have a great day and "Happy Selling"

Funny picture! Not so funny topic! It is so important to consider the competition when setting the price. Sellers want to forget that piece of the puzzle. Great explanation...Thanks for keeping your post real...real estate that is! :)

BB, Thanks for keeping it real! Love the bikini, you have been working on your fitness! LOL

Bryant - You always have such thought provoking posts. I truly enjoyed reading this and have book-marked for follw up. Thanks - now I need to reexamine my listings that have been on the market for more than 30 days...

Bryant, good stuff. The whole time I read it, I was thinking of my listings. For sale, and rent. I need to get some price reductions.

This is exactly how I price as well - except that in our market, prices are either holding steady or rising. But, we have a big inventory right now and many options, and overpricing will not sell the property (it's not that kind of rising price market).

UCBB: The Codger™ term is “Blatant Self-Promotion” or “Blatant Marketing.” I don’t think you need any advice from us in that department ;-). Hmmm: Yuk

Nope—let me say this about that: “YUK!”

Jay

Oh man Jay!!!!! You be looking good over there.:)

Hey everyone, I apologize for being such a bad host today on this post. I've been dealing with last minute closing issues and actually did something I don't do very often...I had to show properties!!!! Now you know from reading my blog that is just not something I like to do BUT in this case it's one of my long time customers and I have to do it. I have 5 investor buyers that won't work with anyone else. Between that and being on the phone all day dealing with issues I just now got a chance to make it back.

As always I really appreciate you taking the time to add to the conversation. If you have listings that aren't selling now is a good time to update your CMAs and see if pricing adjustments need to be made. I usually do that every 30 days. Sometimes it may not even be pricing but something missing from the MLS or maybe even a slight error when the data was entered. A good practice after you enter a listing is to sit down and do several different MLS searches that a REALTOR(R) might use to make sure your property is showing up. Not only showing up but showing in a good position. I've done this only to find out I had mixed up a number in the zip code and it caused my listing to not show up. It's important to catch these things quickly so we don't waste any marketing time. Check and double check all MLS info.

Here's a good one:

"If you find a REALTOR(R) to list at that price. make sure they have a purdy sign because you will be looking at it for a long time"

BB,

Love your post...love your post love your post,love your post!

Ok I already spent my 25 long ago today so I am just wasting time making my rounds!

BB - I am late getting in on this one. Great post. I have talked about this a few times over the last couple of weeks. We only disappoint our sellers and mislead buyers by overpricing listings. I am fortunate that the market in my area is doing pretty well but we can't keep inflating with no good cause.

BB-great crash course on listing to sell. I needed to hear this this week. Thanks!!!!

BB,

I never understood how folks could list property any other way...but it happens all the time.

Your advise, "To take a listing that is grossly over priced is nothing more than a waste of time, money and effort. So don't do it. Give the Seller the facts. If they are not in agreement or can't sell because of too much of a mortgage or whatever, then it's best to walk away."

I my market, Denver, the same thing is happening...what was good 8 months is dead today. We actually had one buyer, totally approved for the mortgage, ready to go waste 2 appraisal fees on two over-priced properties that once the agent saw the appraisal lower than his price...

....wanted to Blame The Appraiser instead of fessing up to the seller he overpriced it.

Needless to say the sellers wouldn't come down and the buyer moved on. Now he's under contract on a home that was still priced $15K too high....3rd home in a row...but the seller was an agent and knew it was time to sell and came down to the appraised value.

My point is this...the appraisal will uncover your mistake in the current market conditions, so if you don't want to waste everyone's time...no just your own...price right like BB said.

Rob, I heard somewhere.."A bad appraisal happens at time of listing" Very true. In this market the appraiser is not going to just "make it work". If he does the lenders will cut him off real quick. We had enough of that in '04 and '05.

Valerie, I hoped it help. That's the reason I write. It also helps me to do the things I'm supposed to do. If I write it, I must practice it.

Virginia, I'm with you on that. Nothing good will come from an over priced listing. And my market is full of them!

Neal, Do you love this post?:)

Yes I love this post!

Looking a little pale. You might want to wash the sun block of your face

Bryant,

I just had to let one go that just didn't get it. Someone else will probably list it, wear them down, and it will sell after they finally get it down months later to where I told them it will likely sell. Oh well!

Lucky :)

APR

2007

Hey Bryant! Thanks for the post. I'm still working on "letting go of the end results" and this helps make a strong case for that.

I know I'm guilty of taking some listings because I was new and wanted to have some listings, but all it did was waste my time as well as the time of the clients. No sense to it! This post should help people realize it just isn't worth it.

APR

2007

Love your post, Bryant!

I agree with the comments. We have to give sellers the reality check and first do it diplomatically and if that doesn't work the "gloves" come out quickly.

Great post, I have learnd a great deal from an over priced listing that qualified as short sale later, "should have seen that coming" . waste of time and energy. thanks for reminding us Bryant.

MAY

2007

How do you manage to keep your face so gothicly white while getting such a great tan! LOL Patti Ann

MAY

2007

Oh my gosh, this is soooooooooooooo true, we have been in a buyers market in Ann Arbor for 5 years. The rest of the county is just catching up. I tell my sellers the same things, price it in the top 10 that a buyer will look at. Forget the sold data. It is changing ALl the time. This was encouraging to me.

Hey guys, I guess I have neglected this post. Sorry. As always your comments are greatly appreciated. AR is so big now it's just so hard to keep up.

Missy, being in the top 10 is definitely the place for your listing to be. At least it gets a good chance of being shown. You are doing it right.

Patti Ann, I am looking good aren't I?

Zane, It's a hard lesson to learn but it will make you a better lister in the long run.

Anna, Good to see you. It can definitely be a battle to get things priced right. But it's worth the fight. That is if you like getting paid:)

Brett, Good to see you. Where have you been? Busy I hope. Did you ever implement that FSBO letter?

Lucky, Maybe they will call you back next time around. I have that happen a lot. And it's sweet every time:)

Jeff, It was all the margaritas.

Neal, You sure?:)

It's hard to keep up when you have to prepare a meatloaf like this one :)

See. I told you I would find a way to work that masterpiece into a comment. LOL.

TLW...ROAR!

JUN

2007

Hey, BB I'd like my face on that body ! LOL

FEB

testing for meatloaf :)

I would rather have a BBQ Bacon Burger, but thanks.

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