Is it unethical for a real estate agent to take an overpriced listing?

It is unethical to mislead someone about the value of their home in order to obtain their listing !(COE Article 3). So I would say that if you believe it is in fact overpriced, you should be making that disclosure loud and clear !!!

Richard, heard a lot that it is unethical etc etc! However when competition lists the home at that price, the usual feeling is - 'I could do it! and why not? I did suggest the price to the seller' anyways.

Just because a listing is lverpriced does t mean the seller doenst know it.  Most likely, not only his agent has told him so but also the market is rejecting the property.  I wouldn't find it very wise to list an overpriced property but I don't see it as unethical if  the seller is informed and still insists in a higher list price. 

In our market we can only give a price range. Our market is very strange indeed...The inventory is so low in MOST of our townhouse/condo highly desirable complexes that the last solds are minimal...one to two at best. Appraisers have to go outside of the complex to determine a 'fair market value'. Of late, seller's have underpriced or overpriced but needless to say, if we have no offers..and an excellent condition unit...'the public speaks'.  Bottom line, yes, I take slightly overpriced listings with the contingency that after two weeks of no action...we will readjust the price.   SEVERELY OVERPRICED? NO!  Of course the other agent who does just looks plain silly lol

It's not unethical. As an agent though, I believe you have an obligation to tell the seller they are overpriced. And put it in an email so you have a record of telling them. Overpriced listings will frustrate you and the seller when they aren't getting the traffic or an offer. Good luck.

Sometimes you have clients that you have worked with over the years, I will try and work with their price as long as they are willing to adjust the price when its not working out.

Like the others above, I would accept if there is a willingness by the owner to adjust price.

Very interesting  topic, one you can go on for days. Everyone is going to have a different opinion

It happens all the time in my area as a method of securing the signed listing.

We suggest getting an appraisal, home inspection and WDO and if we cannot sell it during the listing period we will reimbuse them. 

I'm with Charles. If I think a seller is being unreasonable, I encourage them to get an appraisal to confirm their listing price. So far so good.

If the agent has discussed what's going on in the market with the seller, and the seller insists on pricing the home higher, then the agent can decide to list it at the seller's price (with a reduction after a certain amount of time if it's not showing) or to walk away.  That's simple enough.

Thank you for the blog. Great information. Have a great week!

Hi Richard,

While it may not be unethical if the owner insists on that pricing.  The agent is not doing themselves or the seller any kind of service.

Great post and topic I have taken listings with the agreement from the seller to adjust the price if we get no activity; if they are willing to compromise I will take the listing.

I will take an overpriced listing even if I educate them the comparable solds in their neighbourhood and explain the pitfalls of having an overpriced home.  He may, or may not become more reasonable after 30 showings and no offer... in any event, I may pick up new buyers..

Its one thing to take a listing its another thing to sell homes.  I guess we all decide in the end which business model works for us and which one doesn't.