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Don't spend another dime on that listing...

By
Real Estate Agent with Exit Realty Properties

One day recently, a colleague got the all important listing. He beat another top agent to it and h was so excited because it was his first. He pulled out all the stops but also informed my seller that in a couple of weeks, they would re-assess and if there was no activity, they would drop the price and this was agreed. As time went, they executed that agreement and dropped the price, still no action. That customer, like many others, MUST SELL. As he swept through new listings and active ones in the area, he noticed that a home 4 blocks away had dropped their price...significantly. He called his seller and was shocked to hear that this would not be the case and she didn't think she could drop her price anymore given that they have a certain amount to pay back on the mortgage. At that point, he was stunned and upset because he had already spent about $200 marketing that property including an Open house within a one month period. As he complains about the situation, it hits home.  

It seems that many sellers or majority of them have not woken up to the reality that those profits from RE are not that available any longer and the market continues to get worse. Listings abound and there is no shortage of them but if we can't sell those listings, what good are they?

If every realtor took a stand with the seller and refused the listing unless it was priced right, I think many of the sellers will come to the realization very quickly. It is hard for realtors to market property in a down market with so much inventory and very few buyers. If you don't price it rght, you are literally throwing your money away. Unless you are making that money by any other means, don't bother.

For every $1 spent on marketing a property, we should be getting $4 back. How do we make this happen?

 

Afie Makinde

Exit Realty

Carolyn Galant
Coldwell Banker Residential - Madison, NJ
MBA - Coldwell Banker - New Jersey Real Estate

No complaining about $200.  Don't know the price range of the house, but I did 4 broker open houses  paid someone to do one for me, that is 75 bucks, and the one I served food at ran me $110. Also paid for brochures and professional photographer, and a customized sign rider. and I am not done yet.

Sep 28, 2007 03:01 PM
Victor DaGraca
Critical Home Inspections - Myrtle Beach, SC
Myrtle Beach Home Inspections

Absolutely right.......

The seller can ask for the moon, but, that doesn't mean they will get it.

Someone has to bring them back down to Earth. Thats where the listing agent earns their stripe. By properly educating the seller on their properties worth.

Whether it be through a CMA or by a competent appraisers analysis including square footage costs, market conditions, neighborhood aesthetics and whatever else they throw into the blender to come up with a number thats valid today but useless tomorrow.

What's a home worth? whatever the buyer is willing to pay.

What you described is, unfortunately, a sign of impending doom for that particular seller. They owe more than the home is worth. Gee... whose fault is that? Maybe they can talk the bank into a short sale.

If an agent spins the wheels and burns the cash trying to sell an overpriced property for a seller that won't budge, maybe it's time to cut the losses, apply the lessons learned and move on..........

Sep 28, 2007 03:06 PM
Anonymous
Afie
I agree. I know that the seller has been presented with everything but they won't budge. I guess they are not that desperate yet. That is my answer in all of this. When reality hits, let's hope it's not too late.  
Sep 28, 2007 03:09 PM
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