PRICE IT OVER MARKET??? A PROVEN TECHNIQUE FOR DRIVING LISTING AGENTS INTO THE POOR HOUSE!!!

I have turned down listings that the sellers demand be priced way above market value, in the end it saves me time and aggravation

I have a rash of this behavior in my market and i cant think anything but agents are being encouraged to give values higher than market value just to get listings. I wrote about it yesterday. Many sellers are happy to hear teh truth that is backed up by real comps while other sellers are just listing with who ever gives the the highest value. They soon learn and I hear from most 6 months later when their homes have not sold. 

The biggest role of a listing agnet is to earn the respect from the sellers. .

as a captain of a ship. .

the sellers choose the destination. .

and allow the captain to take them there . .

Lenn, I believe it is the fault of the listing agents who take overpriced listings thinking the sellers will lower the price at a later date. As long as agents accept these overpriced listing, we will have this problem.

Lenn, I'm very frank and upfront with sellers when it comes to pricing.   They will know that they may not get any showings, they will know that they will be faced with reductions, they will know that buyers ask and get comps, they will know that the property will  have to appraise.  Usually, those are things they haven't considered.

Hi Lenn...I get that all the time, a seller will say - I can always come down in price when we start negotiating, but the problem is they could have been negotiating with multiple buyers if they had priced it right in the first place and by pricing high they give the advantage to the one buyer who knows the ball is in his/her court.

When those highly overpriced properties are listed, then often the listing agents face an expiration with no offers being made.  It's always best to go by the current market value of properties in the area.  Unfortunately, sellers won't necessarily get credit for the extra work done to their home.  It just depends on the availability of homes for a particular location.  If a certain neighborhood is in very high demand with buyers, then maybe the seller can get away with being slightly overpriced.  Being greatly overpriced, however, most likely is another story.

Many ways to skin the Real Estate cat....However, the cat is not going to stand still while doing this either..

True, a sign in a yard will bring you calls/potential leads.  I cringe when I see a yard sign sticking sideways from the ground, faded, windblown and long forgotten.  For me an overpriced listing is an energy drainer, I avoid them.

The agent, broker, REALTOR that takes an over priced listing sets the wrong expectations and when expiration time comes around, next. Stalled vehicles in the middle of a multi lane highway left abandoned, parked and sideways causing obstacles to maneuver around....that is what over priced MLS listings are like. Dead wood. Developing mold and wasting resources when the seller demands weekly ad insertions, all out razzle dazzle...even super bowl ads when nope. All that won't help and wastes your time when you could be selling many fairly, realisticaly priced property listings. To get to closings over and over. To slide the check your way while you push the keys the other. With a happy happy happy smile.

For reasons you stated in your post home owners have to be realistic or their homes won't sell. Thanks for sharing and have a great day.

Lenn, 

I agree with the tone and substance of your post 100%, I do think though in some sellers markets where inventory is at 2 months or less, that it is smart to price listings 2.5% or so above existing comps, usually appraisers will meet you there, and my experience in a market that is exactly like that right now is that you still get a bidding war.  I recently put a house that had comps of $158,000 on the market at $163,900 and got 10 offers in three days.  It is selling for a good bit above that, and now we just have to have the appraisal come in where it needs to be.  In most markets though all of your advice is sure spot on, and even in sellers market 10-20% is ridiculous and everything you say is sure accurate!

I had such a conversation yesterday with a seller who paid $550K for a home in Elk Grove in 2007. I told her she will be disappointed to discover she can't get what she paid for it. She actually said, so you don't want to help me? It's not that I don't want to help you, lady, it's that you're not gonna get what you want.