Just Say No To...

By
Real Estate Agent with DWELL Real Estate

Overpriced Listings

Danger - Overpriced! sign

 

Alright, I know it is impossible to get rid of all the overpriced listings out there. I suppose you need some overpriced listings to make the right priced properties shine. However, I still so many ridiculously priced homes out there for sale. I only work the Sarasota, Florida markets but I imagine much of the rest of the country is similar. 

Unrealistic sellers/overpriced listings not only waste the buyers, listing agents, and sellers time but it also prolongs the market recovery. A lot of buyers are apprehensive to pull the trigger right now for many reasons - economy, continued price declines, more foreclosures etc. The fact that there are a gazillion properties out there for sale does not help. There is little sense of urgency for the buyer to act because they have so many to choose from . What would happen if they didn't have so many to choose from? What would happen if 30% of the inventory in your market disappeared? It might help the real estate recovery. Buyers might get that sense of urgency again after the newspaper reported, "Inventories of Homes For Sale Plummets!"

I'll be the first to admit that I have some overpriced listings. However, the sellers I have are motivated to sell but just have not priced their property aggressively YET. Sometimes, it takes time. It is difficult for many sellers to do that from day one.

I figure Realtors take overpriced listing because:

 

  • They are either no good at valuing property
  • Want to pick up buyers from their signs
  • Trying to dominate their farm area
  • Have no buyers or sellers and need something to do
  • Because they feel the seller will get real one day
  • Have a very good client that pushed them into taking the listing
  • They took the listing at a ball park price 6 months ago and now it is really overpriced.

 

What ever the case may be we can do our best to help this real estate market by lowering supplies. One way to lower supplies is to quit working with unrealistic sellers and taking listings that you know won't sell. I know it isn't always obvious if something will or will not sell but we should do our best to get rid of those "You Gotta Be Kidding Me!" priced listings.

I would be curious to hear if you are still seeing plenty of overpriced listings in your market. Chime in if you would.

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Rainmaker
85,493
Tom Ferry
Tom Ferry-yourcoach - Newport Beach, CA

Great post Marc!

We have to be stronger in our pricing in order to survive this market right now!

Passion Rules!

Tom Ferry

www.yourcoach.com

 

Feb 04, 2009 04:37 AM #1
Rainer
179,139
Mark MacKenzie
Phoenix, AZ

Marc,

I think every market is going to see plenty of this.

I think part of the problem is that sellers are unable to compete with foreclosures prices, in many instances they simply don't have the equity position to lower their price.  Unfortunately, foreclosure prices are the market price.

Feb 04, 2009 04:55 AM #2
Rainmaker
102,154
Marc Rasmussen
DWELL Real Estate - Sarasota, FL
Sarasota Real Estate

Hi Mark,

I think that is true in many neighborhoods. Like you said, unfortunately foreclosures prices are dictating the market.

Feb 04, 2009 05:00 AM #3
Rainmaker
605,583
Brian Burke
Kenna Real Estate - Englewood, CO
Broker & Advising Expert-Denver Luxury Real Estate

Marc, yes, it's still happening here too. Sometimes at very large amounts over. I have noticed it even more so with fsbo's. ~Rita

Feb 04, 2009 06:41 AM #4
Rainmaker
388,619
John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

I walked away from two overpriced listings last year.  I really didn't even think they would get many calls to get a potential buyer.  as of today neither has sold.

Feb 04, 2009 02:07 PM #5
Ambassador
920,196
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate

Actually I am not seeing that many in Michigan but we have been going through this longer than most states. So the sellers have been realistic the last couple of years.

The issue up here is the amount of short sales and forclosure's that continues to force the "priced right"homes down. We see multiple offers on the REO properties and wait forever on the short sales. Mean while the homes priced right for the neighborhood sit.

Feb 07, 2009 12:06 AM #6
Anonymous
Ernest O'Dell

I've noticed the same syndrome of over-pricing properties down in the Texas Hill Country for almost 10 years, long before the "bubble" burst.  Seems like poetic justice that a lot of them are still sitting on the market 10 years later.  These sellers really do think their stuff is made out of platinum.

I watched a ranch property with over 250 acres go from 13 million down to 7.5 million in less than one year, and that's still too high.

Why?

Because it's still sitting there.

(Shaking my head...)

Maybe, just maybe, when they get the property down to about 5 million, somebody will come in and buy it.

Ernest O'Dell - Guerrilla Real Estate Marketing

Feb 07, 2009 12:28 PM #7
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Rainmaker
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Marc Rasmussen

Sarasota Real Estate
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