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Answers (8)
- Call The Sisters, "Call The Sisters"
- Contributions:373
We have all been there. I will not take a grossly overpriced listing. 9 times out of 10 it expires. It might go through a second or third agent before the seller starts to get realistic.
Trying to market the property you expend time, effort and advertising dollars. In the end the seller blames you for not bringing buyers and getting him a contract.
It's a no win situation.
Trying to market the property you expend time, effort and advertising dollars. In the end the seller blames you for not bringing buyers and getting him a contract.
It's a no win situation.
- Jim Basquette CRS, CNE, "Jim Basquette"
- Contributions:1231
I have had this happen several times. I do the following in this order.
1. I present the CMA - this is when I find there is a pricing issue.
2. Show the sold comps in detain with all photos and ask the seller which they would make on offer on. I also ask them to look at all the comps and their home from a buyers perspective as ask where their home fits with the others on value.
3. Ask them to get an appraisal since them home won't sell for more that the appraisal.
4. Tell them I am not interested in an overpriced listing that will not sell.
I recently had been asked to come to a $1,000,000 home to discuss listing it. This home was built by the owners and had never been for sale so I wanted to see it before doing a CMA. When I arrived, we discussed pricing and I let them know that although I needed to do a CMA, I could tell the home would not sell for more than $700,000. We discussed an appraisal and they said they already had one. I did not know the appraisal value and didn't want to yet.
After I left and did the CMA, I informed them that it confirmed a $700,000 list price.
They interviewed 8 agents and asked be back to list the home for $998,000. I decided to make another try to get the pricing right with another face to face discussion. At the appointment, I asked what the appraisal was and they said the high $600's. We discussed how it did not make sense to list above $700,000. I asked about the other agents prices and they were all "about the same as yours and the appraisal"
I eventually told them that it would not be in thier best interest or mine to list the home above $700,000. They asked about $885,000 and I still said I would not list above $700,000.
They were going to go back to another agent and I suggested that they could find an agent to list at their price, but they could not find an agent to sell it listed at that price.
I did offer to accept the listing with 1% paid up front so I could market at their cost, but that I didn't recommend it since it still would not sell and was not in their best interest. They were not willing to take the risk they wanted me to take. I left.
They did find an agent to list the home in the mid $800's. It willl not sell and I don't know if I will get the listing later, but I am glad I didn't take the listing above my price.
1. I present the CMA - this is when I find there is a pricing issue.
2. Show the sold comps in detain with all photos and ask the seller which they would make on offer on. I also ask them to look at all the comps and their home from a buyers perspective as ask where their home fits with the others on value.
3. Ask them to get an appraisal since them home won't sell for more that the appraisal.
4. Tell them I am not interested in an overpriced listing that will not sell.
I recently had been asked to come to a $1,000,000 home to discuss listing it. This home was built by the owners and had never been for sale so I wanted to see it before doing a CMA. When I arrived, we discussed pricing and I let them know that although I needed to do a CMA, I could tell the home would not sell for more than $700,000. We discussed an appraisal and they said they already had one. I did not know the appraisal value and didn't want to yet.
After I left and did the CMA, I informed them that it confirmed a $700,000 list price.
They interviewed 8 agents and asked be back to list the home for $998,000. I decided to make another try to get the pricing right with another face to face discussion. At the appointment, I asked what the appraisal was and they said the high $600's. We discussed how it did not make sense to list above $700,000. I asked about the other agents prices and they were all "about the same as yours and the appraisal"
I eventually told them that it would not be in thier best interest or mine to list the home above $700,000. They asked about $885,000 and I still said I would not list above $700,000.
They were going to go back to another agent and I suggested that they could find an agent to list at their price, but they could not find an agent to sell it listed at that price.
I did offer to accept the listing with 1% paid up front so I could market at their cost, but that I didn't recommend it since it still would not sell and was not in their best interest. They were not willing to take the risk they wanted me to take. I left.
They did find an agent to list the home in the mid $800's. It willl not sell and I don't know if I will get the listing later, but I am glad I didn't take the listing above my price.
- Mangas John, "JohnMangas"
- Contributions:1
I am a real estste broker in Ohio. We run into this all the time. I tell my associates to present the facts in 3 or 4 different ways (comparables for their neighborhood, the elementary school, auditor's web site, and perhaps even a complete market trend). If they won't listen, it's time to professionaly decline the listing and walk away, leaving the door cracked a bit. It's sometimes better to be the 2nd or 3rd agent in!
- Sergio Hernandez, "Sergio Hernandez"
- Contributions:619
Fire him and find a real customer.
- Brian Weinhold, "Brian Weinhold"
- Contributions:103
Another way...this one is fun....
"Mr. and Mrs. Seller...we're having fun and getting along well, right? We're all enjoying ourselves wouldn't you say? (they agree) Lets say I agree to list your home at your price. Time goes on and we see a very limited number of showings, if any at all, despite my efforts and expenses in marketing. You're going to get frustrated that your home hasn't sold. The fun and enjoyment we are having right now will become a distant memory and you will associate me with the frustration and, more importantly, the failure of selling your home. Our listing will expire and you will decide its time to try a new agent. That agent will tell you to list your home at the price I suggested and the home will sell.
Please do me a favor, if thats the way its going to be, allow me to be Realtor #2.
"Mr. and Mrs. Seller...we're having fun and getting along well, right? We're all enjoying ourselves wouldn't you say? (they agree) Lets say I agree to list your home at your price. Time goes on and we see a very limited number of showings, if any at all, despite my efforts and expenses in marketing. You're going to get frustrated that your home hasn't sold. The fun and enjoyment we are having right now will become a distant memory and you will associate me with the frustration and, more importantly, the failure of selling your home. Our listing will expire and you will decide its time to try a new agent. That agent will tell you to list your home at the price I suggested and the home will sell.
Please do me a favor, if thats the way its going to be, allow me to be Realtor #2.
- Brian Weinhold, "Brian Weinhold"
- Contributions:103
I have a few ways of handling this issue and for the most part don't fall into that trap, however I'm far from perfect. :) I, too, have listed homes too high in retrospect.
I find that people make more rational decisions when we can bring it into simple terms they can relate to. I like to use the following (more or less):
"I appreciate the opportunity you've given me to work for you, but if you insist on that value, I will have to politely decline. Wal Mart doesn't stock Twinkies on their shelves for $10 because they know it simply will not sell. A buyer would have to have a pretty strong craving to pay that! I know this is a simplified and crude analogy, but you can see my dilemma here. I would like to sell it for you, but I simply cannot stock my shelves with inventory that won't move. Its not a smart business model and doesn't leave my clients satisfied with me."
This approach has worked for me several times and has never failed to at least get a laugh.
- Dan, "the_country_hick"
- Contributions:4695
You have 2 choices here.
1 list your house at a price that will never sell. Then reduce your price while no one wants your house. After being on the market to long people wonder what is wrong with it.
2 list your house at a price that could sell.
(followed by)
I refuse to offer a house above a reasonable price. It is a waste of time and effort. I have provided a list of solds and you can see how your house is not worth more than x amount. If you want to sell it that can happen. If you just want to list it and not sell it why bother?
You have a choice to make. You can either work with a professional who will do this right or you can go with someone who will price your house way to high. Which do you want to do?
(sit in silence waiting for a reply)
1 list your house at a price that will never sell. Then reduce your price while no one wants your house. After being on the market to long people wonder what is wrong with it.
2 list your house at a price that could sell.
(followed by)
I refuse to offer a house above a reasonable price. It is a waste of time and effort. I have provided a list of solds and you can see how your house is not worth more than x amount. If you want to sell it that can happen. If you just want to list it and not sell it why bother?
You have a choice to make. You can either work with a professional who will do this right or you can go with someone who will price your house way to high. Which do you want to do?
(sit in silence waiting for a reply)
- hpvanc
- Contributions:2577
Offer to discount your commission by the amount of a pre-sale appraisal if they are willing to get one and price it in accordance with and willing to accept an offer within 97?% of the professional appraisal.
Taking an overpriced listing does nothing but damage your reputation with the public.
Taking an overpriced listing does nothing but damage your reputation with the public.
How do you handle a seller who wants a much higher price then is realistic?
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- 0.0/5.0
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