an early lesson learned

By
Real Estate Agent with RE/MAX Top Properties

My first listing was my father-in-law's house. He 'hired' me to list and sell his home about two weeks after I receieved my license. Now an area expert, I'll openly admit that any semblance of a CMA I did was just trash at the tim e of listing....but it wouldn't have mattered anyway- he had a price in mind and what he wants- he wants.

The house was a very nice one on a little street called Candyland Lane. I threw it up on the market and went to work marketing it to the best of my then-current ability. Open houses went by visit-less, showings were few and far between- in fact, they were non-existent....I cannot remember a soul walking through there.

After several months of this lack of activity and becoming more and more honed on my craft, I re-did my market analysis and found that we were priced about $20,000 too high (or about 5%)......

"I apologize for being too green and making this error, current comparable data shows your house should be about 20 grand lower than we've got it at....it'd be a good idea to lower before the midwest winter sets in and holiday s are upon us..."

NAH

Okie dokie artichokie.

What's a guy to do?? He's got a listing that he knows is overpriced as he's trying to make a name for himself in a new business?? It's a no brainer!

Our listing agreement expired on the last day of that year. I told him the next day that if he wasn't willing to listen to reason that I didn't want to market his house any longer....the last thing I wanted to be was the new guy that doesn't know what he's doing and lists houses too high.

He ended up selling with another Realtor in about a month after relisting....a different agent sold the house for the listing agent and the buyer paid close to full price for it.

What's the lesson in this?

If you're not careful the lesson is: list at whatever price and some other dope of an agent will allow his or her clients to get raked over the coals to cash a commission check.....If you're me- it became the greatest story to tell potential clients.

1) I'm not going to price your house higher than it should realistically sell for.

2) I'm going to stand by my word. If I tell you I'm going to do something (like let a listing go)...I'm not bluffing.

3) and most importantly- I'm a man of conviction that's going to stand up for what he believes.

**I could have had that listing forever and that same buyer would have come in and offered on the house if I had it listed just as easily. I wouldn't have been able to sleep at night knowing someone was already getting in over their head on a new purchase even if it did benefit family and my bank account.

Posted by

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Jim Ludes is a REALTOR with Century 21 Coleman-Hornsby in Grundy and Will County, IL. If you have a question about real estate that he might be able to help with, email him at Jim@JimLudes.com or call/text at 815-712-7786. If you'd rather observe from afar or become friends first, check him out at:

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Rainmaker
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Debbie Malone
Londeree's Real Estate & Property Management - Lynchburg, VA
From Lynchburg To The Lake (434) 546-0369
Jim, I can relate to dealing with relatives: The worst transaction I had was with a relative. My poor brother dealt with my sister (and her unrealistic husband)- he is no longer a Realtor!
Feb 06, 2008 06:55 AM #1
Rainer
69,596
Jim Ludes
RE/MAX Top Properties - Coal City, IL
Grundy/Will County, IL REALTOR
Debbie, the unrealistic family member turned into a blessing for me though. It taught me then and there that I'd have longevity in the business by doing it the right way, all the time. I can't please everyone. 
Feb 06, 2008 10:27 AM #2
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Rainer
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Jim Ludes

Grundy/Will County, IL REALTOR
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