Overpriced houses are overpriced, no matter how many agents list it.

By
Real Estate Broker/Owner with Cornerstone Business Group Inc 0225086119
https://activerain.com/droplet/5kGd

I showed a property that was on the market for most of the year at approximately 35% over the current market for a similar property. Of course, it didn't sell. It came off the market, and then came back on at 25% over the market.

The second agent fluffed up the description to make it sound like it was a real a bargain.  She said it's, "Completely gone over!" What does that mean? It meant that the owner painted, hung one ceiling fan, had the floors refinished and changed the kitchen sink.  That's nice, but it's still 25% over the current market, even with a reduced price.

This is a topic that gets a lot of airtime on Active Rain and other Realtor blog sites.  Friends, please honest with your clients. A house that is 25% over the current market is going to sit, get stigmatized and end up in the hands of another agent in six months. For some companies it's all about market share. The more listings you have, the more successful you look. Maybe, but if they never sell, that also gets around.

We're in the home selling business. If we're not selling these homes, we're in the home babysitting business, and unfortunately, unlike when you're babysitting for extra money during the 9th grade, it doesn't pay well. You are more likely to have potential future clients look at your listing sign month after month and decide you don't actually sell homes. You just plant signs like Spring flowers. I know, I've had my own garden.

Just like a hundred posts before this one, let me encourage you, please don't take overpriced listings. Overpriced listings are for FSBOs. We're in the business to move real estate. I took a listing last week that had been on the market for eight months. It had been overpriced by $100K. How is that even possible on small to average sized house in small town?  If we price it right, they will come. If they come, we will sell.   

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Ginger Harper 09/09/2019 08:45 PM
  2. Ron Barnes 09/10/2019 06:17 AM
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Rainmaker
460,614
Ron Barnes
Associate Broker at Berkshire Hathaway Home Services Georgia Properties - Jasper, GA
"Most agents claim they're #1 - I THINK YOU'RE #1!

Ain't that the truth!

Sep 10, 2019 06:17 AM #14
Rainmaker
1,945,142
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

I don't blame sellers for over pricing listing inventory that wastes time for buyers, other sellers, agents too. These listings are like parked vehicles on a super highway and tie up resources. Agents, brokers taking over priced listings hoping the seller will have a come to Jesus moment and see the light on pricing should be gamblers in Vegas. Put your time, money into listing, peddling properties with a prayer of getting to the sit down pass the keys, slide the check please right Mike Cooper, GRI ?

Sep 10, 2019 06:18 AM #15
Rainmaker
323,859
Sharon Miller
RE/MAX Platinum - Crane Hill, AL

I recently wrote an "infomercial" in an attempt to enlighten prospective buyers and sellers.......there's a difference between "winning" and selling or purchasing real estate. Feeling good about the overpriced figure you're asking for your home, is a "winning" attitude but a losing proposition. 

Ignoring a market analysis or suggestions from your realtor.....is a recipe for "losing". As was mentioned in the article, a disheartened seller will replace the realtor because they convince themselves the "messenger" is the problem, rather than the message!

Attempting to reason with people holding this logic......is like teaching a bull to dance, "the bull gets mad, while you become frustrated".

When someone states they are taking their unrealistically priced property off the market, you simply reply......."Good Luck"!

 

 

Sep 10, 2019 06:57 AM #16
Ambassador
898,749
Lynn B. Friedman
Atlanta Homes ODAT Realty Call/Text 404-939-2727 Buckhead - Midtown - Westside -- and more ... - Atlanta, GA
Concierge Service for Our Atlanta Sellers & Buyers

Mike Cooper, GRI 
Hmmm - so many wonderful statements - guess I could have just copied the whole post! Thinking of you and your family often - Lynn
1. We're in the home selling business. If we're not selling these homes, we're in the home babysitting business, and unfortunately, unlike when you're babysitting for extra money during the 9th grade, it doesn't pay well. 

2. We're in the business to move real estate.

3.  Friends, please honest with your clients. A house that is 25% over the current market is going to sit, get stigmatized and end up in the hands of another agent in six months.

Sep 10, 2019 07:45 AM #17
Rainmaker
1,917,152
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good afternoon Mike Cooper, GRI -  the market is a stubbern thing.  It will win every time.

Sep 10, 2019 11:13 AM #18
Rainmaker
1,078,884
Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

I tend to see this a lot unfortunately. The mentality for this is pumping up inventory and getting leads off the listing. It's really the seller that suffers - unless it's their idea and they won't listen to reason. Either way, it's not good for the industry.

Sep 10, 2019 11:52 AM #19
Rainmaker
1,013,620
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

As the demand drops the buyers near are very sensitive to condition, features and price. Most will take one look and move on.   

Sep 10, 2019 12:13 PM #20
Ambassador
3,985,667
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Mike:

It's always interesting to see what happens, or doesn't happen, with overpriced homes when re-listed, and then sometimes re-listed again and again. Trying to convince buyers to purchase an over-priced home is a losing battle. The market always wins.

Jeff

Sep 10, 2019 12:13 PM #21
Rainmaker
316,966
Gordon Crawford
Gordon Crawford Home Selling Team - Morristown, NJ
Your Morris County Specialist!

Mike, sellers still remember the prices at the height of the market and can't come to terms with the fact that they aren't going to get what they paid.  In many instances, they can't see that the price is "overpriced"!

Sep 10, 2019 12:38 PM #22
Rainmaker
175,037
John Henry
John Henry Masterworks Design International, Inc. - Orlando, FL
Residential Architect, Luxury Custom Home Design

Well done and said.  Makes perfect sense:  If we price it right, they will come. If they come, we will sell.   

Sep 10, 2019 02:28 PM #23
Rainmaker
481,848
Ricki Eichler McCallum
CastNet Realty - Corpus Christi, TX
Broker,GRI,ABR, e-Pro, TAHS

Awesome blog.  Love your wording!  And yes, you are so right, we are in the house selling business not the listing business.

Sep 10, 2019 04:48 PM #24
Rainmaker
3,203,990
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Price it right or just a little under and magic happens, overprice it Nothing happens, great post and a powerful message to sellers. Now let's hope they read and listen, Endre

Sep 10, 2019 06:37 PM #25
Ambassador
3,310,482
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

OMG, the 'home babysitting business' - PRICELESS and so 'Mike Cooper!' I love it!

You're so right - if the market isn't having it, the market isn't having it. It matters not how many agents you hire. 

Wait! Isn't that the definition of insanity?!!

Sep 10, 2019 07:43 PM #26
Rainer
476,889
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Great advice to agents , yet, many never learn the psychology behind a successful marketing strategy or the art of attraction. 

Sep 10, 2019 09:25 PM #27
Rainer
144,279
Robin Wells
RAW Chimney Sweep and Inspections - Penetanguishene, ON
Giving Peace Of Mind One Chimney At A Time

Thanks for post and tips.  Overpricing in our area at least can mean that the seller actually ends up selling quite a bit later and after several price reductions and at times it seems even below market value!

Sep 11, 2019 03:02 AM #28
Rainmaker
201,617
L. Scott Ferguson
Ask4Ferguson - Your House-SOLD Name in Real Estate - West Palm Beach, FL
Sunny Florida Real Estate Professional

'Home Babysitting' love this!  Great post!

 

Blessings

Sep 11, 2019 05:11 AM #29
Rainmaker
1,434,738
Kat Palmiotti
Grand Lux Realty 914-419-0270 (NY), kat@thehousekat.com, (MT) 406-270-3667, more information to be provided shortly - Kalispell, MT
The House Kat

You're so right - overpricing doesn't help anyone, not the seller and not the agent.

Sep 11, 2019 11:21 AM #30
Rainmaker
1,833,018
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I can’t count the number of times I’ve said - The Market has spoken thru their indifference , there is nothing left to prove at this price point !!!

Sep 12, 2019 06:06 AM #31
Rainmaker
919,991
Ginger Harper
Coldwell Banker Sea Coast Advantage - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

 

Some folks just do not realize the harm that they do to themselves by overlisting a house that will not sell at that price.

Sep 12, 2019 01:13 PM #32
Rainmaker
434,754
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

Great post Mike! An overpriced listing will sit until your sign gets so rusty it falls off the frame! I don’t need it, don’t wanted, and don’t have time for it 

Sep 14, 2019 02:09 PM #33
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