There was a blog a few days ago authored by Judy Cicalese entitled, How do you know when it's time to give up a listing? soliciting comments from us as to when is the time.
In too many instances, the time is before you even take the listing, especially in our present market. I'm located in the Greater Orlando market and we have a much healthier market than most areas of the country. We all want listings, but I don't understand why someone would take an overpriced listing just to have it languish on the market with your name rider on the yardarm. Yes, I do agree that exposure is great and that is what promotes us as realtors, but there is a limit. Don't you think that when people see your name on a yardarm for an extended period of time, that they won't question your efforts (marketing, etc.) as a realtor?
I've continually mentioned that to sell a home within a reasonable amount of time in this market, that you have to show 'Price & Value.' Yes, there are many more factors, and I know that Price & Value are not on the top of the list as reasons for consumers to purchase a home. I've always felt that for a home to sell it has to be sold twice. First to the realtor and then to the consumer. I rarely forward overpriced listings to my prospects, unless this home just totally suits their needs. There are too many other goods values out there. I don't have time to waste showing a listing where the owner needs a reality check.
I've been working with a prospective seller who wrote to me that she wanted to price her home high so that she has more room to come down in price. I viewed the home for her out of courtesy, since she is an absentee owner who bought the home for her children to attend college. Before I went out to this home I wrote her that there was a good chance that I would not take the listing due to what she wrote me. She understood that I might not wish to waste the excess time on her listing, but she did not understand there is a price to pay.
It costs us money for a listing - there is the yardarm, producing marketing materials, virtual tours, etc. There is also the possible future cost to us if that listing languished on the market for too long. Yes, your name may be remembered from people consistantly seeing it on the sign, but will they call you? Don't you think that there might be a negative connotation given to your name for being out there so long? Don't you think that people might infer that this may not be the realtor for me? You know that they will be wondering why that home was on the market too long. Some may know the reason, but how about all of the others that don't know the story behind it.
What I do when I take a listing that the seller wants to price somewhat higher than I feel is to write in the listing agreement that the home needs to be reduced to the price that I suggested in 2 weeks time. This, of course, is dependent on the amount of traffic, realtor feedback, etc.
I apologize if I may seem to negative to some here, but we are the professionals. Our industry, unfortunately, gets too much negative publicity. It is our job to educate the public.
How many times has it happened that you may have taken an overpriced listing and then was meek about calling the seller and telling them that you needed a Price Improvement? It's best to address that at the beginning. Why put yourself in that position?
Thanks again for allowing me to rant!
Best Regards to all.