Just lower the price!

By
Real Estate Agent with DeLex Realty

I recently posted to a Facebook real estate page asking for help on a very unique listing I have.

While the comps were all over the market, I had done a lot of research on the property and while I felt the price was a bit high, I also felt it was reasonable.

The first advice (and I received it multiple times) was lower the price.

I had one agent claim to be an "expert" in the area and said it was $125K too high. He claimed that he and his wife were "the bomb" (his words) for this type of property and went on to say I was crazy with my list price.

I believe in my fiduciary duty to my clients. I believe that is one of the only reasons they need a Realtor in today's market.

The are paying me for my expertise, my experience and knowledge in not only market conditions and pricing but also in marketing and trust I will invest in their homes.

Nervous that I may have overlooked something that others were seeing, I hired an appraiser and had a full appraisal done to the property. The appraisal came in $10,000 less than list price (well within the range I told the client it would sell for).

Perhaps it is time to change the rules of who can be an agent.

It sickens me that so much of the advice was just lower the price to sell the home, I felt then and maintain that is the easy way out. It is my job to get my client the most I can for his property as when I represent a buyer it is my job to get the property for the least. I really upsets me that so many in my field actually believe the best way to a commission check is through selling out the interests of their clients. I feel sorry for their clients and ashamed they are allowed to be members of the industry I really enjoy working in. Perhaps if nothing else these people should take a marketing class, client relationship class and above all a class on CMAs.  

Posted by

James (Jim) Lord

jim@jimlordregroup.com

www.jimlordregroup.com

480-648-3378

Comments (3)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Jim,  Hate it when comps are all over the place.  Good luck with your listing.

 

Apr 20, 2017 05:43 PM
Jim Lord

I am not a fan either, ends up being a lot of driving around!

Apr 20, 2017 08:37 PM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

I can understand your frustration, but you also have to realize, only you know all the details when you post for advice. And, often properties are over priced, as yours was by $10K. I'd say keep perspective, you asked for advice on Facebook??? Not really and expertise place to gather info. Glad it worked out for you.

Apr 20, 2017 08:36 PM
Jim Lord

It was a real estate forum on facebook, run by a broker buddy of mine. There are about 2,000 local agents on it. Some actually had some good advice, it was just about 10 of them who were pushing lowering the price. The property is a 1+ acre lot with a six car garage and a 1400 sf main house, it is kind of a crazy property. Comps in the area (for something kind of similar) ranged from $490K to $580K, we chose to list a little closer to the middle of the comps. What got me, is these 10 agents all said it was $100K overpriced, I could not figure out where they were getting that. Anyway, I have vented, I am over it now. 


 

Apr 20, 2017 08:40 PM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Jim. I hear what you are saying but after all is said it does always come down to price. If the home hasn't sold, then you need to remember you should be forthright with your clients no matter what. Just saying.....

Apr 21, 2017 06:54 AM
Jim Lord

I totally 100% disagree. It should NEVER be about price alone, that is a lazy answer, I am sorry but it is. It is your fiduciary and ethical duty to your client to obtain the highest and best price for their property. I would agree that an attractive price will make it sell fast, sure everyone wants a great deal and if that is best for the client (IE they are in financial trouble, getting a nasty divorce, etc) than it is okay to sell at a discount. However under a normal circumstance it is not ever about price. If a home is not selling, it is becuase of poor marketing, nothing more. I have had to own that on properties, when they do not sell sometimes it is your own fault. That said, you also have to be 100% sure of your comparables, market condition and ect., to ensure you are not overpriced as that is equally a diservice to your client.  

Apr 21, 2017 08:22 AM