Buying a LISTING
Reading today about overpricing listings on another blog, I knew I would never take that listing. I have had my fill of overpriced listings to feed someones ego, I go to listing presentations with my eyes wide open. I bring a CMA that is fresh and as objective and true to the market as I can make it.
If the seller has inflated expectations we part friends. At first I was dismayed. all my friends have tons of listings and I don't.
Then I overheard a colleague say, "Anyone can get listings its really easy"! I thought well, ok you do have a half dozen, and I have none so I need to listen up here.
Tell the seller what he wants to hear, then have a pre-determined price drop campaign in the backup., Ready to drop those prices every 30 days or two weeks. A signed amendment you attach to the listing agreement.
Wow, I thought, huh, wait, what about... all those buyers who may have wanted the house at the 90 day later price but since moved on and bought another one while my sellers house is on the market? SO, they could have made an offer.
Wait, what about those folks who didn't know this listing existed because it was above their price threshold? Well.. they will see it when the price drops to their range.
Wait, isn't that misleading my sellers? Don't I have a duty to represent them in the fairest most honest way? Sure you do and you are, you have pre determined price drops so they can realize and come to grips that their property is only going to sell at what you had suggested to begin with.
Wait, wouldn't it be better if they got the home sold 90 days earlier by pricing it right in the beginning? Sure, but they don't want to and if you want the listing you will go with it.
Wait, I don't want to play those reindeer games. Ok, then suzie or timmy or jose or jacob or mary will take that listing and get those buyer phone calls. Remember they are called LEADS.
I may not be the sharpest tool in the shed, I may be looking at the world thru rose colored glasses, but by jingo when I take a listing it is to $ELL THAT HOU$E.
You do have a fiduciary duty to sell the house as quickly and efficiently as possible. So, I do agree with your comments here. But, I suppose that what the other folks are proposing is not wrong--just a different approach that may involve seller frustration later in the process.
Being honest with sellers is HARD. Last year I had NO listings. It was nuts. EVeryone bought them but me it seemed. Things have gotten better recently. Since the stock market crash, people are more realistic. But buying a listing and playing tug-of-war with the seller about price is not my idea about doing what is best for the client - or me for that matter.
Price it right from the start. It will sell.
Price it to High it will Sit.
Good Luck to you in 2009
Karina
Well yes a dilemna for sure, the agents with this approach do feel they are serving the seller and helping them learn at their own pace. hummm
Hi Gail... Overpricing a listing is the surest way to ensure that it will grow stale in MLS and take longer to sell. I always advise clients to price it properly from the outset.
Gail, I to will not "practice" real estate. The customer always forgets that they are the one that assumed the role of expert, when it won't sell. Price sells Real Estate!
Thanks,
T
If you price it right it will sell. Overpricing is a sure way to loose a buyer. Then you just have a house with a million DOM that nobody will look at.
Nice blog, Gail. I have some overpriced listings so I can't say I won't take them but I sure prefer the ones that are priced right and sell quickly.
I don't like overpriced listings. The last one I took I told the buyer it was overpriced. She disagreed. I agree to take the listing if she drop the price every two week. During the first two weeks no showings and then she wouldn't drop the price. So we agreed to drop the listing.
She re-listed with another agent and still owns the property today. I don't plan on ever taking another overpriced listing.
Gail,
I guess there are different approaches. I once worked in a commercial real estate and was working on a presentation for the apartment building owner.
We suggested $3.2 Mil, and did not get the listing. A world-famous commercial brokerage got it. They suggested $4.2 Mil. Just one month later they sent a letter to the Seller suggesting the reduction in price. Do you know what the suggested price was? Yep, $3.2 Mil.
The scenerio that Jon describes is what I have known to happen also. Somewhere I have heard that called, buying a listing. It just smacks of get the listing at all costs. Is that how we really represent a seller? Just to take a listing so we have a sign on the property? I am still perplexed about this method that seems ok to so many. Everyone has a right to do business as they see fit, I am just cut from different cloth I guess.