Update on an Overpricing Situation

By
Real Estate Agent with Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com 0480809

Back in February, I blogged about a situation I was in with a potential listing who wanted to overprice their listing.  I have an update for you.

Just to refresh your memory, I said the house barely comp'd at $350k and that it would likely sell for less, but the sellers were in the red at $350k so they wanted to list at $369,900 (after I very bluntly said no to $375k).  They decided to list with another agent.

It's now 3 months later, and after reducing the asking price to $349,900, they sold the house yesterday for $340k.  So, would it have taken 3 months to sell if it was priced correctly to begin with?  Probably not.  Just another example of how a Realtor who knows their market never knows the market as well as a seller who thinks they know it all.

Congrats to the sellers who sold while in the red!

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Rainmaker
130,170
Kevin O'Shea
Coldwell Banker - White Plains, NY
White Plains, NY Real Estate

Hi Donna,

I had written up a sheet on Buying a Listing back in the early 90's.

I have recently pulled it out to put in my CMA.  Basically it talks about agents who BUY a listing by overpricing it.

It helps a lot with "those" listings.

All the best!

 

May 29, 2008 05:02 AM #1
Rainer
205,537
Sylvie Conde
Sutton Group-Associates Realty Inc., Brokerage - Toronto, ON
Broker, Toronto Real Estate

If only sellers listened to us more ... I gave up a listing last year, twice ... same scenario. I wouldn't take a listing so grossly overpriced.  It still hasn't sold, and it is just up on the market again for $50,000 MORE than last year, with the same agent who couldn't sell it last year (and our market has been great).  I really hope they can sell it.  They are a family member, and I told them I'd rather not mess up the relationship but that I was glad to have them give the listing to someone else. I didn't even want a referral fee, because I knew what could happen, if I was involved in any way.

Hopefully buyers and sellers will do some homework and figure out how much it's worth to them, to have a realtor who is honest and hardworking, and only has their best interests at heart, even if it means telling the whole truth and losing the business, rather than tell them what they want to hear, and waste time and money and turn it into a stressful relationship.

May 29, 2008 05:05 AM #2
Rainer
26,172
Joshua & Kathy Schmidt
ERA Henley Real Estate - Cabot, AR

I don't understand the logic of some sellers.  I think they just want their opinion from us, just in a different voice.  But when our opinion differs we suddenly don't know what we are talking about.  Hopefully next time they will listen to an agent that is trying to look out for them.

May 29, 2008 05:17 AM #3
Rainer
66,973
Rob Muller
ReMax Town & Country - Canton, GA
Cherokee County Real Estate

I've seen so much of this lately. If only the seller would listen to the professional- they just might know what they are talking about.

May 29, 2008 05:18 AM #4
Ambassador
2,434,357
Steve Hoffacker
Steve Hoffacker LLC - West Palm Beach, FL
Certified Aging In Place Specialist-Instructor

Donna, great post. Entertaining but sad for both them and you. You could have sold it correctly 3 months ago and likely gotten them more money.

May 29, 2008 05:20 AM #5
Rainmaker
1,459,518
Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

Kevin, I've never had anything in writing about "buying" the listing, but I do talk about it in my presentation.  It would be nice to have something in writing to leave with them... wanna share?

Sylvie, I feel for ya... I have the same thing going on with my in-laws right now. I'm not getting a referral fee because I didn't want the friction.  Plus, my Father-inlaw was licensed back in 1979 so he knows best!! LOL!

Joshua and Kathy, Exactly, but sadly, not the case.

Rob, But these sellers were out of state investors. How could they not know what they were doing?  Of course they were right!  (said, tongue in cheek)

Steve, I completely agree, but alas, why would they listen to little 'ol me?

May 29, 2008 06:00 AM #6
Ambassador
1,362,808
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

All I can say is that AT LEAST it sold...... Buyers are not forgiving these days.

May 29, 2008 07:57 AM #7
Rainmaker
658,809
Randy Prothero
eXp Realty - Mililani, HI
Hawaii REALTOR, (808) 384-5645

I run into sellers frequently who are pushing the price, yet need to sell fast.  Not a good combination.

May 29, 2008 09:49 AM #8
Rainer
52,480
Linda Box Taylor
Castle Connections Realty - Plano, TX
Your Plano, TX Realtor

Don't you just want to go back to those sellers and say "I told you so"?    I know you would never do that but I always have the urge  when I have that situation happen to me. 

May 29, 2008 10:46 AM #9
Rainmaker
254,707
Sandra Paulow
Aspen Properties, Inc. - Pinetop Lakeside, AZ
REALTOR, Associate Broker, GRI, SFR

Donna,  You are not alone!  I had a listing for 10 months and I repeatedly told the people they needed to come down on price because they were way over market.  They kept holding out and holding out and finally the listing expired at the end of March.  They came back to the mountain May 1.  They immediately listed it with another agent for 30K less than I had it listed for.  It sold in a week.  I don't get it but people refuse to listen to what someone they have a relationship with say, but along comes someone else and they listen. Go figure!

May 29, 2008 11:48 AM #10
Rainmaker
236,381
Debbie Summers
Charles Rutenberg Realty - New Smyrna Beach, FL

Donna - I agree with you 100% - Walk away from the listing... 

May 29, 2008 02:49 PM #11
Rainer
34,516
Tony Bolodar
Priority Financial Network - Plano, TX
TX Residential Mortgage Loan Originator, #1320876

Donna, So very true.  But congrats to you for not stooping to take a listing that will just sit there.  Recently I had a buyer that put a contract on a home.  They wrere asking $124k and the contract was for $120 with a few concessions.  When the appraisal came back at $115k the whole thing fell apart.  The home was $10k over priced from the start. 

Being so excited to have a listing rather than to be the Professional Consultant can in fact hurt your business.  I tell my Realtor-Partners all the time to not be like the excited dog wagging its tail to get the business.  Even if it will be the only listing you have.  Make sure you price the home to sell.  And, in todays environment, that is getting harder and harder. 

Anytime a Realtor-partner needs help in what a property will sell for, I am glad to help.  I call my Appriaser and ask him for a few comps and what he thinks without going out there.   He does this for me for free and his opinion along with the data you collect, should convince your seller as to the value they might expect.

Jun 07, 2008 03:18 AM #12
Rainer
33,354
Sara K. Braden
Bloomfield Homes - Fate, TX

GREAT post.  I am working with a buyer now who is contingent and being impossible to their Realtor regarding how to price their current home.  I always breathe a sigh of relief when a pro is handling it!  Way to remind everyone WHY a great Realtor is always a win (even if they want to price your home lower than you do!)

Jun 07, 2008 07:43 AM #13
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Rainmaker
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Donna Harris

Realtor,Mediator,Ombudsman,Property Tax Arbitrator
Are you Packed for Austin? I can help!!
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