Today, professionally licensed REALTORS® are being taught that accepting an over-priced listing is not in the best interest of the Sellers.
The implication here is that above all else we have an ethical obligation (fiduciary duty) to be working in the best interest of the Sellers.
If the Sellers weren’t prepared to price properly as a part of an overall marketing strategy, why would we engage them in business?
I’ve read numerous times on AR posts where REALTORS® have walked away from unrealistic Sellers; normally the Seller who won’t contractually agree to a pre-determined price reduction schedule if their home hasn’t sold after certain periods.
Listings used to be the name of the game because the more listings you had the more successful you would appear to the public. So this would encourage Realtors to practice "buying listings".
There are still holdovers using this model, and with little regard for the legal ramifications. As a matter of fact many would have received in-house training on price reduction strategies.
Once the listing had been bought the price reduction strategies would kick in.
So I’ll pose this question: Is discussing a price reduction that isn’t in the listing contract an open admission of professional failure?