I read a blog by James Gordon this morning about when you should turn down an overpriced listing and it reminded me of something that happened to me last month.
I received a call from an out of state seller who had a rental property on the market for 191 days, yes, I said 191. During that time, the price was $104k. People in other markets might think anyone would jump on this house and they're crazy not to. However, I went and previewed the house, and ran comps, and the house comps out at about $92-95k.
At the time the sellers called me, they were still under a listing agreement, so I talked with them in generalizations about the area and said we would talk in more specifics when their listing expired, as the broker would not release the listing. With all our talks, they knew I knew it was over priced, and the only way to generate activity was to get it below the $100k mark. I mean, to be at $104k for 191 days with no price adjustments and about 1 showing a month, that should tell you something's wrong right there.
While we waited for their house to expire, they asked me to run comps on 6 of their other rentals that they wanted to sell as well. I'm thining, WOW! 7 listings from one seller, this is GREAT!! NOT!!! The price ranages were from $50k up to about $100k. Really bad houses in bad neighborhoods that I don't like to drive in, but I still sent them the information thinking they would all add up to a volume deal instead of just one listing at $50k.
Anyway, the first listing finally expires, and I spoke with the wife. Mind you, most of the other conversations had been mostly with the husband (wife on speaker) and via email with the husband. The wife was not happy with my final analysis that listing at $99k was pushing it and to sell it, we needed to be at least at $95k. She said she would talk with her husband. I also followed up with an email to the husband. He said he would sign the paperwork and send it back... a couple more days go by, and the husband says they've just been busy... a couple of more days... I check the MLS, and what do you know?
THEY LISTED THE HOUSE AT $104K WITH ANOTHER BROKER!! Yes, I said $104k. Again, it was already at $104 for 191 days. So, I can see how they thought the strategy of listing it at $104k would help them this time. The current listing has been on the market for 28 days already... at $95k, it would have lasted a week with my marketing!!
If these sellers BEGGED me to list their house to try it out at $104k, I would have very bluntly said no! Why would another agent, after seeing it on the market for over 6 months list at the same price? He must have been desperate for the listing.
Mr. and Mrs. Seller, if you're reading this, as I know you found me because of my blog, YOU'RE OVER PRICED and you're going to continue to make mortgage payments and pay taxes on a vacant house!!!
