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Don't tell em what they want to hear.... tell em the truth!

By Sara Lipnitz

Real Estate Agent with Max Broock Realtors

August 21, 2006 04:49 PM

I propose the following scenario:

You have a chance to take a listing. A home that comps out say at $735k - $750k. You've done all the market research and a CMA. You propose a listing price of $779k. You present your research to the sellers, and they decide to hire you for the job. Here's the hitch, they want to list at $869k. You explain that as much as you want that price to be feasible, the market simply won't support it.

Do you take the listing at their price?

I know that I've been in the situation on several occasions. I don't want to make a practice of signing up listings that will require me to spend my money, my time and my energy all to give it back when the listing agreement is up. If we fail to be clear about market conditions, comps and such up front we are only hurting ourselves.

I will typically agree to start out at their price. However, I negotiate UP FRONT a schedule for price reductions.

What are some things you do to ensure that the work you start is the work you finish?

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Kristal Kraft

Novella Real Estate - Denver, CO

Selling Metro Denver Real Estate - 303-589-2022

Yes, if they don't list at my price, but want all the goodies I offer them, I put a clause in the contract that they will reimburse me for my costs if the property does not sell or is cancelled by them.

Aug 21, 2006 04:55 PM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

I walk. I f they are not real close to market value I won't take the listing. "bettrer to turn them down now than let them down later"

Aug 22, 2006 12:50 AM

Maureen Francis

Coldwell Banker Weir Manuel - Bloomfield Hills, MI

Coldwell Banker Weir Manuel

There are a couple of new builds in Birmingham that we interviewed for last year. Our price was in the range of where they are now listed, a year later, second listing agent and 200K in price reductions. I feel bad for the first agent, who took the seller's price. But nobody was done a favor by it.

Aug 22, 2006 01:09 AM

Tony and Suzanne Marriott, Associate Brokers

Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ

Coldwell Banker Realty

It depends. If the house was in a high traffic area and would get a lot of visibility and open house traffic for my Buyer Agents, I would explain to the Seller that if they want to start there, OK, but they need to know it's for my benefit for the traffic that will come my way, and that when they are really ready to sell, we'll need to reduce the list price to "x". Usually, they see the light!

Oct 13, 2006 02:38 AM

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Sara Lipnitz

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