"I Love You But...3 other Realtors Said...." Confessed the Desperate Seller

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Real Estate Agent with Keller Williams 414-525-0563

  We thought...that the realtors who had not "shifted" were gone...or nearly extinct...and gone on to pursue other professions. That they had learned, through more trial and error that "buying a listing" does not work. You cannot make money....sell homes, keep or attract clients and customers when you over price a home to get the listing...it just does not work....messy house

   We looked at a house the other day....blocks from the home I grew up in...I know the neighborhood...and still know many of the neighbors. The man had gotten the house back in a divorce. His now ex-wife had been a hoarder and had also trashed the property and not maintained it...what a combination !  Sooooo he spent weeks, cleaning out dumpster loads, painting, re-this and thating and asked us to come over and tell him the list price. For all he had done...there was sooo much more to do...the kitchen was a complete do-over just to begin to bring it into this century,,,the brown sink a in the half bath and narrow dark woodwork...huge gold veined mirror strips on the wall screamed of days gone by...decorating gone bad. The garage and basement were spotless...his priorities, not necessarily a buyer priority.

       "I have to sell this quickly !"  he quipped...when he "got it back" the mortgage had not been paid for a couple months...the property taxes were in default and so his cleaning was going to pay this all off and he would walk with "start over money."   Whoops....

  We gave him a price...offered to help with some staging...remove the mirrors...replace light fixtures...and still...the price would barely cover the indebtedness with the penalty, interest clock adding expense.

  We knew he would have to get at least one...if not more, "second opinions." Sure enough....he said he just had to take that leap of faith...he had tooo much time....money and emotion invested and not that he did not respect our opinion but 3 other realtors gave him prices of 30-40% higher than our suggested list.

   foreclosure signHmmmm...now why would we list a house for that much under the market....The foreclosure bus will be parked in front of the house sometime soon....hard to believe that many realtors could be wrong...he decided they were not. Stay tuned as the bus drives up  and the foreclosure fist tightens around the house...I will take my license on it.

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Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS

Sally K. & David L. Hanson  

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Joseph J. Chang 02/28/2010 12:24 PM
  2. Steve Facella 03/01/2010 02:07 PM
Topic:
Real Estate Market Trends
Tags:
overpricing
foreclosure
wesellupsidedownhomescom

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Anonymous
Joan Lorberbaum Moore

Sally & David,

Agreed! Using logic doesn't help anyone who is armed with emotion. And, don't you just love it when you hear from a seller something along the lines of "I know someone will just walk in to my home, fall in love with it and pay what I'm asking?"

Mar 01, 2010 11:25 AM #101
Rainer
65,414
Alyce Martin
The Realty Group, LLC - Albuquerque, NM
Albuquerque - THE Place To Be!

Sounds like you were outnumbered on the price opinion so no amount of talking is going to change a desparate seller's mind.  You gave an honest assessment, too bad the others didn't.  

Mar 01, 2010 11:34 AM #102
Rainmaker
1,494,920
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

Just saw the listing....our $179 is $249,900....complete with fringed shades, the ever popular brown sink and dark battered oak kitchen cabinets...and gold veined mirrors strips...floor to ceiling...mmmmmmm eye candy !

Mar 01, 2010 11:46 AM #103
Rainer
18,843
Eric Lanspa
Town & Country Realtors - Sioux Falls, SD

There are a few agents who routinely buy their listings and then somehow are able to get them sold.  Those are almost always sold same agent rather than coop.  I can't explain it.  I'll continue to offer straight advice and turn down the overpriced listings.

Mar 01, 2010 12:01 PM #104
Rainmaker
1,286,370
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

They will probably list it at the high price and then drop the price and sell for less than you wanted to list for.  This happens to me all the time.

Mar 01, 2010 12:15 PM #105
Rainmaker
1,494,920
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

We still believe honesty is the best policy ...good 4 u too !

Mar 01, 2010 12:35 PM #106
Rainmaker
137,127
Alexsandra Stewart
Remax equity group - Portland, OR
Broker - Portland Oregon Real Estate

While sometimes there may be a small inner satisfaction when a house finally sells at the price I said it would sell at - when I didn't get the listing, that small sense does not outweigh the real sadness I feel when I see that the seller sells at far less than that amount, a year after it was listed with another agent for that way too high price! 

Mar 01, 2010 01:11 PM #107
Rainmaker
1,494,920
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

In this case....the foreclosure clock will be ticking and time is truly of the essence....we too are sorry...all you can do is offer your help...

Mar 01, 2010 01:42 PM #108
Anonymous
John Marshall

A couple years ago I had to make a presentation to a networking group, I chose the topic of overpriced listings and the pitfalls of sellers buying into.

I did my research and pulled 100 homes in the price range of $1M-2M, lo and behold the days on market was in direct correlation to the the list to sold price, for example the homes that recieved full price offers or higher usually received these offers in the first month, homes that were on the market for 1+ years were selling at 30-40% below original list price. I have saved this information and use it on listing appointments, it makes a very definite impression on the sellers. A well-prepared listing presentation trumps price point 9 times out of 10, and that 1 in 10 you do not want to mess with anyway.

PS I used the $1-2M price range because the numbers are larger and much more obvious and easier to explain to an audience, however smaller numbers work equally as well.

 

Mar 01, 2010 03:14 PM #109
Rainer
3,424
Sherene Roberts
Allied Realty - Skowhegan, ME

I agree with you Alexsandra #107 when you see it sold for what you first told them it would brings a small sense of satisfaction but not the sale. I now will tell sellers who are interviewing agents about "buying a listing" and that there are agents out there that routinley do it. I never mention names or offices. And tell yes I would love to sell your house for that because not only do they make more money but I make more money, what a win win but explain the data just not support that. Typically if I do a good job conveying this to sellers and on my pricing analysis spreadsheet then it does make sense to them. If not and they list with someone else then I follow up with a thank you/ best wishes card.

Mar 01, 2010 03:14 PM #110
Rainmaker
333,353
Ty Lacroix
Envelope Real Estate Brokerage Inc - London, ON

An over priced listing will cost you more than money in the long run.

Ty

Mar 01, 2010 03:45 PM #111
Rainer
14,121
Colin Delaney
Veranda Homes Realty - Costa Mesa, CA

Sometimes sellers need to call a Realtor before they get started through all the mess, don't they?

Mar 01, 2010 03:58 PM #112
Rainer
117,198
Beverly of Bev & Bob Meaux
Keller Williams Suburban Realty - West Orange, NJ
Where Buying & Selling Works

I hope you're wrong, eventhough I know you're not. Agents like this are stupid and blind-greedy. They want to put a sign in the ground, regardless of what it will do to the owner. I unfortunately understand because he felt he had to take a chance to make some money because your reality was scaring him. Too bad...it's hard for many of us to face the oncoming truck in front of us, even when its lights are blaring right in our eyes.

Mar 01, 2010 07:58 PM #113
Rainmaker
322,378
Jean-Paul Peron
The Outer Banks Real Estate Copmpany - Corolla, NC
Carova Beach - Living & Working in 4-Wheel Drive

That is a shame. I have had conversations with expired listings that were so overpriced that I just had to ask "How did the other agent come up with the number?" many times the answer was "That was the number we told them to put it at." Some agents don't care what the price is al long as they get the listing.

Mar 02, 2010 05:36 AM #114
Rainmaker
379,185
Mark Hall
Elite Realty NW - Keller Williams, Vancouver Washington - Vancouver, WA
Homes for Sale Vancouver Washington

I fell sorry for him. There will come a day when he realizes that he chose the wrong agent to get the job done.

Mar 02, 2010 09:14 AM #115
Rainmaker
1,494,920
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

Wrong price, wrong time, wrong agent, wrong ethics, wrong wrong....

Mar 02, 2010 09:35 AM #116
Rainer
174,299
John Howard
Century 21 LeMac Realty - Mountain Home, AR
GRI, Mountain Home, Arkansas 870-404-3614

Sally and David,  Unfortunately, way too common!  Had a Realtor call me today after putting home under contract in 72 hours....Oh My she said...You had it priced way too cheap......yeah right

Mar 02, 2010 11:45 AM #117
Rainmaker
1,494,920
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

Way too cheap....oh sure...that's what we all do for a "quick sale"....or could be that the market has taken a little sllllllllllllllide ?

Mar 02, 2010 11:51 AM #118
Rainmaker
91,716
Stephanie McCarty
Berkshire Hathaway Home Services - Snellville, GA
REALTOR, Snellville, Loganville, Grayson, Monroe

Once in a while I get a "run" of 3, 4 or 5 listing appointments within a short period of time and I play a game with myself about what percentage of them I will actually list.   I used to be able to lock up 90% of them but these days it's less than 50%.   Why?   Nobody wants to sell for market value.   They understand the concept.   They understand that the house has to appraise.   But, for whatever reason, they hang their hat on the slim chance that someone will love their home and be willing to pay MORE so that they can pay off their two mortgages and all their credit card debt and take a much needed vacation.  

When they start singing that song, I'm packing my briefcase up and on my way out the door.    I just wish there was some way of figuring this out BEFORE I do all the prep work and take time out to go to their house and waste time.  

Mar 03, 2010 12:16 PM #119
Rainmaker
131,925
Matt Robinson
Professional Investors Guild - Pensacola, FL
www.professionalinvestorsguild.com

This same thing happened to me just a few days ago.  Some clients of mine had a rental property, and when I met them they were in the process of replacing carpet, painting, etc to get it ready to sell so they could reap their "profit".  They planned on selling it for $145K, except the comps put it at $125k, less than what they owe on it.  You could see the hope & enthusiasm drain out of their feet as I gave them the bad news.  In recent years, I've had to have that conversation way too often...

Jun 17, 2010 05:26 PM #120
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Rainmaker
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Sally K. & David L. Hanson

WI Realtors - Luxury - Short Sale - CDPE, REDS
For All Things Wisconsin Real Estate...Call the Hansons
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