Seller Education with Over Priced Properties

By
Real Estate Agent with Long & Foster

A colleague asked my advice on how to educate a seller who wants to list their property at a very high price.  The realtor had done a CMA for this seller but the seller still insists their property is worth an over priced amount.

 

I told my colleague that aside from a CMA, I do the following

  • Show potential selling clients what their competion is. 
  •  Print out a list of all the properties currently for sale. Discuss with seller how long properties currently Active  have been on the market. 
  • Print out a list showing properties currently under contract and recently sold in that area.  We look at the days on market for properties on that list.  Some properties on the list went very quickly.  We discuss why they went under contract or sold so quickly.

 

If the seller still insists that their property is worth an over priced amount, I take the seller to look at other properties currently on the market.  The seller then actually sees their competition.

 

If the seller still does not see the light, I then tell the seller if the property does not go under contract after a certain amount of days and/or there are no showings on the property, then the market is speaking.  The property price needs to be reduced.

 

If none of this works, ask yourself, is it worth spending time and money on taking an over priced listing?

 

I am curious to know what other agents do to educate sellers.

Comments (7)

Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

This sounds like a great plan to me. Are you probing for motivation? Do they need to sell, or will they sell only if they get their price?

Jan 24, 2009 02:46 AM
Laura Higgins
ERA Advantage Realty - Sebring, FL

If the seller insists on a higher price than what the market currently is after reviewing the CMA and their Realtor fully explains the pitfalls of what could happen if they price the home over the suggested listing price, than my advice would be to walk away.  Let another agent take the listing priced on the high end and when it expires chances are they will come back to you to take the listing at a fair price.  Sometimes seller's need to learn the hard way.

Jan 24, 2009 02:47 AM
Retired Notworking
Tallahassee, FL

You hit the nail on the head. These are all tactics we use as well and our broker encourages us to not take or keep listings we won't get paid for.

Jan 24, 2009 02:48 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Also don't forget if it does not appraise, plus the fact if it is over priced they are helping sell the competitions product.

Jan 24, 2009 02:53 AM
Goodbye Active Rain
Out of Real Estate

Simply tell them, "Lower the price right away or expect the house to sit for a while."  Why beat around the bush?

Jan 24, 2009 02:57 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Considering the amount of work and RISK involved in taking a listing, why even take it if it's overpriced from the outset?

 

Jan 24, 2009 03:12 AM
Brian Burke
Kenna Real Estate - Lone Tree, CO
Broker & Advising Expert-Denver Luxury Real Estate

I was going to say what Lenn just said. If the seller doesn't want to go with a reasonable price it's awful lot of work for nothing. Sometimes just saying no thank you is better. ~Rita

Jan 24, 2009 03:46 AM