Special offer

When did homeowners start setting the price?!

By
Real Estate Agent with Account Exectutive, Mercury Network - a la mode

(Stepping up on soap box)

So, I am watching HGTV over the weekend (my wife is absolutely addicted to this channel) and I walk in to catch this agent sitting down with a potential seller at lunch.  It's all cute and quaint as they sit in this open cafe with the sun shining down only shaded briefly by the overhanging trees that dot the landscape.  As this "team" of agents sits down with the seller they begin to tell her that given all the information and comparisons in her neighborhood this team had arrived at a listing price of $495,000.

The seller then tells these ladies that she had budgeted a sales price of NETTING $525,000 (by my estimations, this would be a listing price of approx. $560,000+) to give her money to put toward the home she wished to purchase.  Her reasoning for listing higher?  "I hope that someone comes in and just falls in love with it" (Mind you, this home is a 2 story colonial, on a busy street, complete with PINK, PURPLE and GREEN rooms...)

My wife's response was, "Well, lets see what her house looks like."  My response was to scream at the television, "WALK AWAY AGENTS.  THIS SELLER ISN'T GROUNDED IN REALITY!!!"  To my absolute shock, these agents look at each other and...AGREE TO LIST THE HOUSE AT HER PRICE!  Are you kidding me?  Now, I am completely glued to the television so that I can watch as this trainwreck unfolds.  After the commercial break, the film crew is riding along with this agent and her comment was, "I really hope we can get a good Broker's Open today.  Maybe some agent will walk in for the free food and then remember, "I have a buyer that might like this house."  She went on to say that she hopes it sells in a couple of weeks, otherwise the seller will pull the listing and just stay in the house.  Really?

Fast forward, the agent team pays for catering and holds what appears to be a smaller turnout than they expected and the show ended with the seller staying in the house.

WHY oh WHY would an agent do this to themselves.  First, let a seller tell them that they HAVE to sell the house for more than what it's worth KNOWING that it wouldn't sell they still take the listing and on top of that, they're given a window of a couple of weeks to sell. 

I just don't get it.  Would anyone here take a listing KNOWING they have a tiny or no chance of selling a property just to have a listing?  Am I missing something?  I feel like I'm taking crazy pills.  I just can't see footing that much up front money for a listing that has a sales price, listing window and terms set soley by the seller.  Don't we owe more to our profession to bring people to reality?

(steps off of soap box)

Thank you.

DALIA KIBBY
One Sothebys International Realty - Cooper City, FL
Selling Florida Homes with Passion!
That agent made mistakes galore!!  The message sent to the viewing public isn't good:  sellers now believe that they make all the decisions regarding price & other terms of the listing contract.  In my office, the mantra is deal with sellers that HAVE to sell and with buyers that HAVE to buy. 
Jan 28, 2008 03:05 AM
Debbie Malone
Londeree's Real Estate & Property Management - Lynchburg, VA
From Lynchburg To The Lake (434) 546-0369
What were they thinking? I saw this episode too and was shocked they listed it at the seller's price. I hated the decor, the agents went to a lot of trouble for nothing. Hope they learn.
Jan 28, 2008 03:11 AM
Rick Tourgee
Robert Paul Properties, Inc. - Provincetown, MA
Provincetown and Cape Cod
Very sad, the Agents should have walked away from the listing.  Regardless of the situation, I am NOT taking any over-priced listings.  Time is the most valuable resource we have, it cannot be wasted!
Jan 28, 2008 03:11 AM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA
The seller and the seller's agent are a team.  Neither is falling into step behind the other.
Jan 28, 2008 03:12 AM
Mike Norvell Sr
Morris Williams Realty - Leesburg, FL
Norvell Consulting Group
Hey my wife (also an addict) called me about this one..she said, I bet you would not have done that , right??? Absolutely not honey, no way.....I would have asked the seller to front the expenses, everything, and the catering....everything.. otherwise, I could take that same money to the track with better odds..., or just get a listing that is priced to sell, with the  seller in the proper mental position, and spend time and money on a good listing...My time and money are too valuable to play around like that...
Jan 28, 2008 03:26 AM
Paula Hartwick
Royal LePage Gale Real Estate - Kanata, ON
The general public just have absolutely no idea how much it costs to list a property. If it takes 6 months or longer to sell, then you're usually lucky if you actually come out ahead after all the listing and advertising expenses. If it doesn't sell at all, then we end up with an unhappy client plus we're out the time and money spent. Turning down an overpriced listing is a smart investment in your own business as far as I'm concerned.
Jan 28, 2008 03:27 AM
Matt Kofsky
Transaction Realty 500 Reno, Nv. - Reno, NV
It is a TV show.  It is not the real world.  Would you take the listing if you got thousands of dollars of free publicity?  The agents knew what they were doing.
Jan 28, 2008 03:35 AM
Eric Richardson
Account Exectutive, Mercury Network - a la mode - Edmond, OK

Actually, no I wouldn't.  What free publicity did they get?  They couldn't sell the house?  Sorry, if I am going to get free publicity, I'll do it in a way that shows that I'm somewhat competent.  The house was really listed, the house really didn't sell and the agents really didn't get a whole lot of good publicity.  That's the real world.

Jan 28, 2008 03:41 AM
Karel Rogers
Real Estate Staging Unlimited - Reno, NV

I see  the seller is often setting the selling price and I have ther Realtor asking me to come for an evaluation of the home to prove to the seller that the home is going to sell for the price they want.  When did the seller become the expert? 

 

Jan 28, 2008 03:42 AM
Greg Dallaire
Dallaire Realty - Green Bay, WI
Green Bay Homes
This kind of media exposure give you an opportunity to be the professional you are. The way I look at listings is simple.  The sellers I choose to work with have high expectations that I can sell your their home.  We have an opportunity to set expectations and lay the ground work to actually do our job.  I remember I had this aha moment when I was thinking.  Hey the beauty of our business is if someone isn't willing to cooperate with us we can move on and work with people who are.  I love activerain
Mar 08, 2008 02:50 PM
Ryan Hukill - Edmond
405home @ ERA Courtyard - Edmond, OK
Realtor, Team Lead
Ha!  Welcome to my soapbox Eric.  This has to be one of my biggest peaves.  Who exactly is the professional?  The homeowner or the agent?  This practice is a big part of the problem in our industry, but I won't go off on that right now.  Enjoyed your post!
Mar 09, 2008 03:27 AM