Overpriced Listings: The Debate - To Take or Not To Take...........That is The Question?
This was such a well thought out and well written post that I needed to share in case anyone missed it. I thought it would stir up some conversation and that's always a good thing. Please comment to Ralph. Especially if your not happy.
Overpriced Listings: The Debate - To Take or Not To Take...........That is The Question?
I had a very interesting lunch date this week with an agent in my office. We discussed many things, but a conversation came up that we all have from time to as to whether or not you should take a listing in which you feel the seller is being unrealistic about list price.
As you will tell from this blog, I definitely have my opinion. But as always for the sake of discussion and sharing good information with each other, I welcome everyone's opinion and input.
Here's how I see the Overpriced Listing World, according to Ralph:
One of the most important things to remember is that a listing is not only a potential real estate transaction for that particular property, but that it is also a marketing piece.
A marketing piece is a very powerful thing. There is much potential business that stems from just one listing, especially these days due to the massive "spiderweb" exposure from the internet. Often times, other listings come from a single listing as well as meeting buyers.
And of course, you must realize that some sellers need just a little slower dose of that reality pill than others. Some seller's are very much in tune with fair market value for their neighborhood, and yet other sellers may have emotional issues that they have to sort through before the "ah-hah" moment comes along. There is a term that some real estate agents use to describe that conversation about price reduction as the "Come To Jesus" meeting where you need to simply deal with the realities of the market and whether or not the seller's true goals and intentions are in line with what it's going to take to sell their home in the current market.
Often times, I find that it's most effective to have a price reduction plan in place when you take the listing. If it's the case where there's a difference in opinion between yourself and your client on how much to list the property for, then create a happy medium and a sense of satisfaction by agreeing to list at the price they feel strongly about, but with a pre-planned price reduction plan that you will roll out over specified time periods should the property not sell by then. This will give the seller the opportunity to see how truly effective their intended price will be in the current market.
Do you want to spend time and money on something that is not going to sell? Of course not. But if you're a good listener and are sensitive enough to what their concerns are, and with a plan in place, most often you can "massage" the seller into the awareness and reality of the market and can get to the magic number that will get them to their next "happy box".
My opinion: Take the listing. Work begets work.
Your opinion?
Comments(4)