So I have an idea...Let's shut down the Real Estate market for 1 week...

By
Real Estate Agent with Century 21 Alliance

I know this may sound crazy (and I am sure it would never actually work) but what if we just shut down the entire Real Estate market for one whole week?  No I don't mean Realtors take a vacation, quite the contrary.  I mean all MLS & isting websites just put everything on hold and in the mean time all Realtors would have to reevaluate their listings.  Below is how I came to this plan and how it would work...

I just came from 2 Broker's Open Houses which showed 2 different examples of the over priced home. 

First was a listing that has been on the market well over a year.  This home is priced over $450,000 (I don't want to give exact info because you never know who may be reading), this home shows very well and while $450,000 may have been a fair market value in 2005, now it should be priced at about $325,000.  Perfect example of how that moving target gets away from people and the home never sells.

Second, was a brand new listing from a Realtor who doesn't typically work the area priced over $450,000.  When I tell you that this is grossly overpriced...I am not kidding!  I have recently done comps for a similar home and I am certain that this home should be priced in the low $300,000s. 

What are we thinking as Realtors taking grossly overpriced listings and holding on to listings that will never sell??? (All of the homes I have listed have had price adjustments over the past 3 weeks, however, I have been guilty of taking overpriced listings as well, i will admit my faults)

This is where my plan comes in...

1. We tell all Sellers that for 7 days, no home across the Country will be available for sale (so they are not missing out on any potential buyers as Real Estate is on vacation.)

2. Every Realtor must use this week to reevaluate their current inventory.  If they don't want to participate then just give up your license.

3. Every Realtor must meet with their Seller and ask them the typical prequalifying questions.  I think this is key!

    Mr./Mrs. Seller..why do you want to sell your home?  How quickly do you want your home sold?  Are their any liens or judgments on the home that I may need to know about? How much do you owe on your mortgage? Are you prepared to reduce the price if we do not get activity or an offer in the next 3 to 4 weeks?, You get the picture.

4. Every Realtor must prepare a brand new CMA. If they cannot be objective then maybe they need to pair up with another Realtor and they can each look objectively at the other's listings.

5. Every Realtor must talk to their sellers and tell them what they will do to market their home for sale (THEN DO IT!)

6. Every Realtor must then get new listing agreements for any home tht will be priced appropriately for today's market by Sellers who really are interested in SELLING (testing the water Sellers no longer apply)

7. Every listing will then go into the MLS as a brand new listing reflecting the updated photos, amenities, & information as if you just listed this home for the very first time. (Of course the MLS will not charge us for these new listings because they just had a week off from work with pay).

Just listed cards will be filling the mailboxes of people across the Country, brochure boxes will be filled with pretty new flyers, yard signs that were once falling down & dirty will now be all clean and upright, there will be an excitement about all of the homes that are competitively priced and Buyers may just be excited about all of the opportunities out there for them!

Can you imagine the possibilities that could come from everyone reevaluating for just one week????

 

Kathy

P.S.  I mean this with the best of intentions so please don't take what I said as a negative attitude but a positive way to create better opportunities for our buyers & sellers alike.

 

 

 

Comments (10)

Margaret Mitchell
Coldwell Banker Yorke Realty - York, ME
Seacoast Maine & NH Real Estate

Hi Kathleen - very creative idea and post.  It would be great for the market to clear out the overpriced listings.

Mar 24, 2009 07:08 AM
Alan May
Jameson Sotheby's International Realty - Evanston, IL
A moving experience!

Kathleen, that's a great idea... I hear it's uncertain who's going to animate it... Disney or Pixar.

Mar 24, 2009 07:21 AM
Becky Brand
Shorewest Realtors - Oconomowoc, WI

Hi Kathleen - fun idea!  Here's the good news: any agent can do this themselves.  There is definitely power in calling a seller and saying. "All my sellers without offers are taking a price reduction today - how much will yours be?"  Peer pressure! 

In fact, I would rather do this as an individual agent than as part of a group.  Then my sellers can all sell their homes and all the other listings can languish on the market.

Thanks for bringing the topic up!

Mar 24, 2009 07:28 AM
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

I often wonder why listing agents take dramatically overpriced listings. You gave two different sceanarios for the "why". One still wonders if the listing agents pulled comps prior to taking the listings.

Mar 24, 2009 07:33 AM
Christopher Bonta
The Bean Group - Londonderry, NH
Realtor, Integrity and Honesty

Hi Kathleen, I admit your title caught my eye, so I read your post. It is a nice idea but I think all the things you mention that an Agent should do during this "time out week" is what they should be doing all the time! I like the positive energy around your post and I give you an A+ for thinking outside of the box!

Mar 24, 2009 07:36 AM
Kathleen Harron
Century 21 Alliance - Wildwood Crest, NJ

Margaret - wouldn't the market be so much better if we only had realistic listings?

Alan - I was thinking the movie would be more of a drama. People could be jumping offer off bridges when Realtors are honest with them about the true value of their home & Sellers would run through a field and into the arms of their beloved Realtor when the house sells for near asking price.

Becky - I LOVE the "peer pressure" tactic.  I guess I have kind of used that in the past without coming out and saying so.  I think the group scenerio works better because we can weed out some of the folks that are lingering out there that don't really want to work

Vicki - I often wonder myself. At the secondscenerio Broker's Open I told the agent (because he asked) that I thought thelisting was way too high.  He replied something like "that is why I am having the Broker's Open House. To get the opinions of Realtors who work the area. Then I will get a price reduction"

Christopher - THANKS FOR THE A+ ! I absolutely agree that Realtors should be doing this anyway but we all know that many do not.  I think we sure could weed out the good from the bad in one week's time.

This was meant to be a bit of humor...so I hope that everyone takes the time to consider my idea then try to build it into their own workday if they are not already doing so.

Mar 24, 2009 11:37 AM
Frances C. Rokicki
Fran Rokicki Realty, LLC - Bolton, CT
Broker-Mentor,CRS

Kathy,

I think a big part of this issue is that there are still lots of agents out there who are not experienced.  They are allowing the sellers to price their homes, instead of the professional.  In the end, it hurts all of us.  If the buyer's are educated, and/or have a buyer's agent, they will have the correct information and know that these homes are grossly overpriced.  A little trip to Zillow would even help:)

It's a Good Life!

Fran

Mar 27, 2009 03:37 AM
Kathleen Harron
Century 21 Alliance - Wildwood Crest, NJ

Fran,

Thanks for the feedback, I always appreciate your viewpoint.  I do have to disagree with the Zillow thing though...I have seen some rediculous pricing on Zillow then you need to explain to the sellers that this program may not be offering the best advice.

Mar 27, 2009 04:22 AM
Frances C. Rokicki
Fran Rokicki Realty, LLC - Bolton, CT
Broker-Mentor,CRS

Oh, yes, I know it is not always accurate, but, like Trulia, it is another tool to look over.  Mentioning these sites to your Sellers, can help you negotiate a better listing price to start with:)  After all, the buyers are out there canvassing these sites, as well.

It's a Good Life!

Fran

Mar 27, 2009 04:42 AM
Jennifer Allan-Hagedorn
Sell with Soul - Pensacola Beach, FL
Author of Sell with Soul

Kathleen - This is FABULOUS!!!!! As you know, this is a subject very near and dear to my heart; in fact, I've bookmarked it to include in my next book, if you're cool with that (credit given of course). It's so rare that I see agents who seem to care about SELLING the listings they already have, rather than simply pursuing new ones.

YYAYYAYAYAYAY!

Why isn't this posted at Selling Soulfully????

Mar 27, 2009 05:01 AM