Should I list in a Buyer's Market?

Houses sell in a buyers market.  They just have to be priced right.

- Tchaka 

Interesting Blog and comments, Jim.  As an exclusive buyer agent, I don't list homes, so this is not really a question which I ask myself.  I can tell you, however, that I wouldn't be standing in line to get listings in my area if I were a listing broker.  Things are slow and a lot of money is being put into marketing homes which will not sell.  Sometimes working with buyers does pay.   

Isn't it ironic that just a little over two years ago we wanted listings and wanted no part in dealing with buyers.  A listing meant a paycheck in 30-45 days. A buyer however, meant gruelling hours of toting them around in ours cars praying they'd like one of the fifty houses we had to show them and then battling with 4-5 other offers being made on the same property!

My coach just said to me, "To last you must list!" Even though I am not too thrilled to take the listings I know I must!  The very first thing that I tell my prospective sellers is that they must be willing to take my advice and be willing to work with me or I can't take their listing.  That seems to be working. 

I recently had a referral for a seller.  When the seller called she said she wanted no less than 200,000 for her condo and that another agent had told her that he could list it for 230,000.  When I arrived at her house and listened to what it was she wanted to do with her life and the reasons she wanted to sell,  I told her that I couldn't see it being listed for much more than 180,000 to meet her goals.  Believe it or not, she respected that I had the guts to come in much lower than the real estate agent that came in before me.  She hired me!

The result...her condo sold in 23 days when the average days on the market were well over 100!  It is really nice to work with sellers that are realistic!

One listing that is priced and marketed right will usually produce additional business. So even though we're in a challenging market right now for sellers, a strong listing agent will have the advantage in the long run. For me in the short term, I'm working with a couple of buyers to smooth out the bumps, but still adding to my listing inventory as well.

Jim - Like you, it is frustrating to list, so we must be selective. Buyers, however are aware of the market and present very low offers after they have seen "all" the homes in their price range. I don't know if there is a difference between the two in the amount of work we do when the market is like this. I try to keep 50/50 and am anxious for a more normal market. 

Debbie great comments. I had a seller who is listed with another company call me on Mother's day. Asked me to stop by her house. I did and told her all the problems that were wrong with her house. I will be getting the listing and dropping it from $489,000 to $449,000 and she said she would not drop it any more when we spoke on the phont but she will be now. She told me I was honest with her and her current agent wasnt, she asked her agent time and time again to tell her why the home is not selling and the agent said nothing is wrong with the house and nothing can be done.  When I walked in the door I pointed to the hardwood floors that are bowed from water problems, the mold, the grass that has not been cut and the 24 comps. that are priced lower than her house.

 

Jim, you choose who you want to work for. If you are successful you have the right or common sense to turn people down if they prove to be unrealistic. I have listings that I think were priced correctly and are not selling. You could be wrong like I was. My business is still 50/50 and spread over a larger area that most agents. The areas will sell at different rates. The price ranges I list are also varied. Selling some of each is a good goal. Many of the agents that only sell neighborhoods near my office are in trouble as its a soft market there. Make sure you have a diverse business and client base. Eric 

Great post and comments!

Our market is a lot more balanced than most.  I like have a 50/50 mix.  Buyers turn into sellers and sellers most times sell and buy.

Jim, I've been asking myself that very question. I have 34 listings and NO pendings, we are seeing results with our buyers and all my buyer specialists are busy.

Jim you said why list when homes aren't selling and you can work with buyers and make some real money. How are you going to make good money with buyers if the homes aren't selling? I'd List, list, list and sell, sell , sell!

Are there enough yard signs for all these new listings, must be good for the suppliers!

I found three A-buyers from my last listing.  It may have taken 3 months sell; but it gave me time to work with and settle the buyers.

 

I agree, list, list , list,

with your sign in front of the home buyers will call wanting to now about the listing or what else the area has. By having  the listing you open the door to a wealth of buyers!  List list list

Mike