Perception is everything, and in this current housing market, your listings are a reflection of you and the type of agent that you are. When you take an overprice listing, both agents and buyers alike receive you with less credibility. After all, anyone who practices real estate should understand the Principle of Substitution and how it applies it to their marketing practice. The Principal of Substitution means that a prudent buyer or investor will pay no more for a property than the cost of acquiring, through purchase or construction, an equally desirable alternative property. This is also the foundation for appraisals and the banks decision to lend on a particular property or not. With this in mind, it is bad enough to take an overpriced listing, yet I see agents market these listings in a manner that gives other agents and buyers alike an even worse impression of them. I am talking about listings that say "Not contingent upon appraisal". I am not talking about Cash deals where they are shortening contingencies, etc., I am talking about fair-market(although it is hard to apply this term here) sales. In a true "Fair Market Sale", the buyer should have an opportunity to pay fair market value for the property, and the process of determining this is through an appraisal. If a Seller or Agent is concerned with the time frame for the appraisal holding up the deal, they can always make the appraisal's timeframe coincide with the inspection period, but to totally ignore the rule of principal of substation and expect a buyer to do the same is a poor method of marketing and practicing real estate.
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