Within the past week I was in competion for a listing with as far as I know 2 other realtors. I did meet with the sellers last Saturday as they were in town to interview realtors for the purpose of listing the home, which they inherited within the last 6 months or so. As you may have gathered the sellers do not live in Montrose or even Colorado for that matter so their knowledge of this market is limited to say the least. I had prepared a CMA a couple of weeks ago and mailed it to them. The nature of the property shows that there are not many comps so I used the 4 that were available. My value based on the comps was the high 400's which in my opinion was being generous. The sellers during are meeting were focused on the price, and asked me several times if I would increase the asking price if I were to get the listing. I referred to the CMA both times as being the best indicator of what the price should be. Needless to say I did not get the listing as another realtor listed it in the high 500's. Evidentally the other realtor's total disregard for the comps bought the listing. In this market what is the point of listing something 100k over the market. As professionals I believe we have a duty to be honest with our clients/customers as to the value of their property. www.MontroseHomeConnection.com 
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St. Charles County, Missouri - Prudential Alliance Realtors - O'Fallon, MO
GRI, e-PRO, Broker/Sales Associate
You are right. The sellers will find that out when their home sits...and sits...and sits... Too bad they have to learn the hard way.
Apr 17, 2008 06:21 AM
Sound Realty - Kirkland, WA
Designated Broker/Owner/Sound Realty
Alan,
As is often the case when this happens; there will be reasons soon bubbling to the surface that will show, that not getting this listing, was the right thing. Stay true to yourself.
Apr 17, 2008 06:23 AM
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos
The red flag was obvious when they focused on the price as the deal breaker !
Apr 17, 2008 06:28 AM
RE/MAX Allegiance, Managing Broker/Branch Vice President - McLean, VA
Northern Virginia & D.C. Real Estate
Alan, this is always going to happen. Alan, be patient and you'll be the second Realtor when it doesn't sell. You can reprice it after they learn the hard way, and then you'll look like the hero!
Apr 19, 2008 06:43 AM
Gayle Harvey Real Estate, Inc. - Charlottesville, VA
REALTOR® - Charlottesville Virginia Homes / Horse
Hi Alan. In the long run your honesty will bring you more business then taking an over priced listing.
Apr 30, 2008 11:50 PM
Anonymous
Alan,
Just had the same experince. I lost the listing because the clients found one agent (out of four) who promised them the world or in this case 12% above current market comps, in order to get the listing.
In my initial consultation, I discussed with the seller about the posibility that one (or more) agents would try to come in and recommend a higher price than could be supported by the "comps" in order to get the listing. Note: in my experience these agents also reduce their commission so it looks like a win-win to the seller (lower commisoin and higher sales price). My warning went by the wayside and she listed the house with the agent who recommended the highest price. Its unfortunate, but it happens.
In my last discussion with the seller, I tried to get her to focus on the future by asking her "what will you do if the home doesn't sell at or near the list price?" She didn't know. I told her she might want to think about that because the longer the home sits on the market, the less she will receive. I also told her that I am available at any time to discuss the proper pricing and marketing of her home.
Most of the time it's tough to tell a seller that their home isn't as valuable as they think. But it's got to be tougher to sit at the closing table (if you ever get there) knowing that you could have got the seller more money had you priced it correctly in the first place. Fortunately, I'll never have to look a client in the eye knowing I could have done better.
I'm now in a wait and see mode.
Aug 12, 2008 10:20 AM
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