Mr Seller ! .... I dont think you get it :o)

By
Real Estate Agent with Bergen County, NJ - RE/MAX Real Estate Limited

~

Once again the media got to another seller who shot himself in the foot by taking the media's advice !!

I ran into an agent today, whose listing I had shown over a month ago.

My buyers liked the house, but felt that it was drastically overpriced.

It was listed at $599,000.

My clients would have been willing to pay $500,000 for it based on the COMPS that we had seen.

... but because that number was so far off, they didnt want to waste their time, and chalked it up to another unrealistic seller with an overpriced listing.

Trying to be diligent, I made a call to the agent, to ask if he felt there was any way that this would sell for $500k? He said he didnt think there was any way the seller would take $500k, and that the seller was difficult to work with, and insisted on a list price of $599,000, even when the listing agent told him the comps dictated a much less listing price. I told my buyers we could still put an offer in but they felt it 'would never happen'.

 

So not wanting to get their hopes up, my buyers moved on - and we are now under contract with another property.

Jump to my meeting today with the same listing agent.

It turns out the listing had since expired and the seller decided to 'rent' it, instead of renewing the listing for sale.

It rented in a week.

Here's the kicker !!

After the lease was signed, the seller told the agent I was talking to, that he would have gladly accepted $500,000 for the sale !!! ... but because of something he read about "pricing a listing high so you have Negotiating Room", he felt that if he wanted $500k he needed to price it at $599k BECAUSE HE WAS READING THAT MOST BUYERS WERE LOOKING FOR $100K OFF DEALS THESE DAYS !!!!!

... now I dont just fault the seller here, because it sounds like the listing agent probably didnt do a good enough job showing comps to prove that $599k was WAAY too high.

I even asked the agent if he had the conversation about 'bottom lines' with the seller, and he said that the guy 'didnt want to go there' and told him 'I want you to sell this for the maximum you can get and not worry about what my bottom line is !!!!!"

 

Well the 'bottom line' is, that because the seller wasnt REALISTIC with his pricing, he is now a Landlord, instead of someone making plans to spend his profit in the sale of his home !!!!

 

Dont Overprice Your Listings People !!!!!

 

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Sheldon Neal is a Realtor® with RE/MAX, specializing in Homes For Sale in Bergen County, NJ.

If you are looking for Bergen County Realtors, call local expert Sheldon Neal for all your Bergen County Buying & Selling needs !
Sheldon Neal ~ RE/MAX REAL ESTATE LTD.
cell:  201-481-2891
email: SheldonNeal@remax.net
website: www.SheldonNeal.com

 

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Re-Blogged 6 times:

Re-Blogged By Re-Blogged At
  1. Ryan Case 11/07/2010 01:18 AM
  2. Stephen Howell 11/07/2010 07:43 AM
  3. Joanne Gillet 11/08/2010 10:44 AM
  4. Susan Jacobs 11/08/2010 11:06 AM
  5. Keith Lutz 11/08/2010 05:03 PM
  6. Richard Iarossi 11/08/2010 09:16 PM
Topic:
Home Selling
Groups:
Club Chaos
Cosmic Cow Pie...The Rome Way
BananaTude
Tags:
pricing your listing for sale

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Show All Comments
Rainer
198,285
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton

Dear Sheldon,

Sellers often have selective amnesia, when it comes to what was discussed or what their feelings were at the time. As Jose (#21) mentioned, you never know, what they will do, until you have an offer in writing. With prices and even other negotiation items, I am always surprised what people will or will not accept.

Nov 08, 2010 09:35 PM #116
Ambassador
662,522
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

Lizette ! Its so tough dealing with those types, because many times buyers WONT put the offer in if they are way over priced !

Leah ! Good point about EVENTUALLY sellers may look back at earlier offers. Cheers Leah !

CTS ! Yes indeed !!! lol

Jose - More good points. But there are times when the relationships between the Realtors has helped with negotiations, but in most cases, written offers will help get the ball rolling.

Cindy ! Amen to that, and many sellers out there are now landlords - many from their own mistakes !

Virginia ! Good policy !

Eugene ! I think you're right !

George ! You bet, thats why i wanted to post it - theres always room for us to learn !

Roger ! Very !

Maria ! I have seen some very surprising responses from sellers too !

Elite ! Agreed !

Jane ! Absolutely ! Very different. No harm in trying the high-end of the range - if that range is based on market comps, but waaay above that range is a waste of time imo - I turn those down :o)

Sally ! - Silly strategy right !?!?!?! :o)

Deborah ! - Amen ! Lots of time wasted on a silly tactic !

Richard ! - Some people have to learnt he hard way !

 

Nov 08, 2010 11:15 PM #117
Ambassador
662,522
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

Jim ! - Very good policy ! And yes, a 20% wiggle spread is irrational indeed !

Hannah ! Ha ! Great analogy :o)

#35 ! - I recommended it - they didnt want to :o) Oh well, maybe fate told them not to !

Ty ! Thats how I approach the sellers  in these cases too.

Jackie ! And thats common sense to show those comps right ! Thanks Jackie !

Andrea ! Isnt is bananas !!?!?!?!  25% !!!

William ! I pass on unrealistic sellers !

Loreena ! Days on the market often pursuades a stubborn seller ! And I think the agent was so frustrated he wanted to vent !!!

Bill ! You're right, the agent defintiely did not to a compelling job showing what the correct price should have been !

Tim ! - Like Nike - Just Do It !

 

Nov 08, 2010 11:24 PM #118
Ambassador
662,522
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

Dorie ! Crazy scenarios these days though huh !!!

Michael ! Thats the problem I see too !

Claudette ! Theres SO much of this crazy advice out there right now, and consumers dont know what to believe ! - they should revert to their trusty local Realtor for the most accurate info !

Petra ! If I take a listing that is in the high end of the Market Value Range - I ALWAYS put a clause as you stated to agree to reduce after two weeks if no offers come in.

Irene ! Ha ! I always RECOMMEND that the buyer agent send in the offer  ! Whatever it is :o)

Bernadine ! Yes indeed !

Harry ! I cant sign the buyers name !!! I recommended they submit the offer and they didnt want to :o)

Jeanne ! Very well said !

 

Nov 08, 2010 11:30 PM #119
Ambassador
662,522
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

KC ! - Good practice for the short window offer !

Judy ! I like your response to those questions !

Richie ! yep me too !

Craig ! Tough lesson to learn though right !

Luna ! Amen !

Rodney ! The media often makes our job that much tougher, and with all the shows and pundits for our industry, it's tough for many consumers to know whats real from exaggeration !

Donna ! I tried - the buyers didnt want to because they genuinely thought it was wasting their time and they were keen to find a new home ! Oh well :o)

Maria ! I like your comment ! Building that trust from the start will certainly help !

Cheryl ! Thanks and we often learn stuff or at least get reminders !

SallY ! Non-Assumption 101 !

Nino Chocolate ! yes yes and yes !!

Erica ! Thats exacty what happened here !

Michael ! Hindsight is amazing :o) Of course you are right though !

Karen ! Yep thats what SHOULD have happened ! But he said that he got the feeling the seller was so stubborn and would never have gone that low - turns out he should have been more sure about that !

 

Nov 08, 2010 11:42 PM #120
Ambassador
662,522
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

JP ! ... that would be too easy !

Josef ! Thats what the experts are for right !

Karen ! Yep - good point. We did get a better home for them though :o)

Barb ! I think they were both crazy !

Christine ! Very loudly - I agree !

Rita ! - Nicely put !

Scott ! I dont think he did ! In fact I would bet that he didnt, based on not wanting to piss him off !  Mistake !

Eric ! There's so much confusing stuff out there !

Mary Jo ! Well thats why these things can occur ! A Seller agent will sometimes shoot themselves in the foot !

Jeff ! I think he fell short too !

Nov 08, 2010 11:50 PM #121
Ambassador
662,522
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

Curt ! Yup - I like when we all share our stories and learn right !

ECoop ! Thanks for your kind support - and have a great week too !

Tammy ! Thats what I wanted to tell him ! lol ! I ALWAYS tell my sellers the inquiries and feedback, and I ALWAYS ALWAYS tell buyers agents to put the offer in ! whatever it is !

Tammie W ! Amazing that the agent and seller werent on the same planet let alone the same page !

Bob ! - I dont even know if he bothered with comps ! He seemed to be saying it was pointless because the seller was so stubborn ! - If that was indeed the case, I would have walked !

Nov 08, 2010 11:56 PM #122
Rainmaker
1,027,605
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
PasadenaCA Real Estate Representation 818.516.4393

$100K negotiation room on a $600K sale----WOW!  

Nov 09, 2010 12:56 AM #123
Rainmaker
150,840
Trish Sarfert
Coastal Realty Experts - Cantonment, FL
Serving military & civilian relocations!

I am tired of the overpriced listings, and I'm just not going to take them anymore.  Had pne seller that promised me price reductions but wanted to 'try his price first'.  Got one offer in the 6 month listing (at the price I had originally told him to price it), offer was refused, and no price drops in 6 months.  Listing is expired, now listed FSBO- probably at a reduced price.  Not gonna waste my time anymore, unless I have price reductions in writing at the time the agreement is signed.  I know my comps!

Nov 09, 2010 09:43 AM #124
Rainmaker
235,183
Jenny Durling
L.A. Property Solutions - Los Angeles, CA
For Los Angeles real estate help 213-215-4758

That sounds like a chain of mistakes that could all have been avoided simply by communicating better.

Nov 09, 2010 10:40 AM #125
Rainmaker
158,055
David & Lisa Webber
RE/MAX Executive - Crofton, MD
www.webberteam.com

I understand not pricing too high, but Mr. Listing Agent, NEVER speak for your sellers as far as what YOU think they will take or won't take.  I have seen time and time again, sellers saying there is no way they'll take less than $ XXX and sure enough when on the market for awhile and presented with a ready, willing, and able buyer, they'll surprise you and take it!  I always tell buyers agents to please go look at the (overpriced) listing and make an offer and we'll see if we can come to an agreement between buyer and seller.  It is, after all, a transaction between the buyer and seller.

Nov 09, 2010 01:13 PM #126
Rainer
23,207
Susie Johannes
Keller Williams Arizona Living Realty - Lake Havasu City, AZ
SFR

Communication! Key to success on all sides!

Nov 09, 2010 02:36 PM #127
Rainmaker
266,421
Carrie Sampron
Home Smart Realty Group - Highlands Ranch, CO
ABR SFR & Kathy Sampron (303) 931-3629 Highlands R

Sheldon:  Yikes, sounds like this listing agent may want to work on his communication skills.  Carrie

Nov 09, 2010 06:54 PM #128
Rainer
37,647
Michael Emerson
Keller Williams Realty - San Juan Capistrano, CA

WOW! That list price was really out of whack. Price a home fairly and be clear in all its features, and you are sure to get offers close to what you ask. I don't believe in the $100,000 drop rule. Makes no sense to me.

Nov 10, 2010 07:08 PM #129
Rainmaker
261,532
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

That seller was clueless and his agent wasn't much better.

Nov 11, 2010 10:29 PM #130
Rainer
283,938
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Kimo's Lifestyle Solutions

Lessons learned, don't list overpriced homes, always get an offer in writing, never disclose what you think the seller will accept and always know what your bottom line is to negotiate a close. When you fail to plan, you plan to fail.

Nov 12, 2010 12:56 PM #131
Ambassador
662,522
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

Lisa ! - I'm not sure if he even informed the seller of my offer ! Sad huh !

Jennifer ! Aint this job great ! lol

#86 - Well said !

Pamela ! Crazy right ! I hadnt heard this type of rationale to that extreme before, but its amazing how some members of the public can interpret what they hear !

Kimberly - you have a point !

Jen ! Thats my motto !

Woody ! And sellers motivations can change weekly in some cases !

April ! Hopefully he will learn from his mistake !

Praful ! - I send comps too, but these buyers did not believe they had a shot, so declined.

Steph ! Amen ! Thats probably the biggest reason NOT to overprice !

Sand Castle ! - Sound advice.

Val ! I wonder if this guy would even have submitted it though !! lol

D & D - It's a continuing problem !

Lucille ! Me too me too !

Dennis & Terri ! LOL ! Yes, bite the bullet and sell, or stress as a landlord in most cases ! Not me !

Gene ! Very good point, and subsequently all offers should go in and see what the  heck happens !

Mary ! Im with ya ! And I always tell buyers agents to submit, whatever the price - its a starting point !

 

Nov 12, 2010 11:29 PM #132
Ambassador
662,522
Sheldon Neal
Bergen County, NJ - RE/MAX Real Estate Limited - Maywood, NJ
That British Agent Bergen County NJ

Fred - YES !

Marte ! Its such a shame when they trust the media more than us !

Catherine ! We live and learn right !

Margaret ! I walk away often from sellers who are unrealistic about pricing !

Simon ! yes indeed !

Margaret N - Another great example of why sellers shouldnt miss opportunities ! Thanks Margaret !

Jaishree ! - Its a sensitive issue these days, and agents and clients should really find a way to get on the same page !

DeeDee ! Agreed !

Carol ! Especially not in this market ! it wastes your time and theirs !

Coleen ! I feel your pain !

Peter ! Hope sellers are more realistic 'down under' !!!

Carolyne !Oh boy ! Regret can loom over you for years ! Thats a a sad story !

Dorte ! Im often surprised too, so put it in ink in front of them :o)

Michael ! Crazy right !

Trish ! Good for you ! And good luck !

Jenny ! I think you are right !

David & Lisa ! Well said !

Susie ! Yes it is !

Carrie ! lol ! you think ! ha !

Michael ! That strategy beats me too !

Tigard ! A good match perhaps !!!

Kimo ! Nice summary !!!

Nov 12, 2010 11:38 PM #133
Rainmaker
311,335
James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes
Real Living | At Home - Washington, DC
When Looking to Buy or Sell - Make the Right Move

Oh the dreaded Over-priced listing.  One day I will learn to never-ever take a listing that is a cent over-priced.  IN the meantime; I keep trying to get sellers to understand it cant be much over-priced or they will never get an offer!

Nov 14, 2010 08:48 PM #134
Rainmaker
207,277
Emcee M. Arah
Remax Excellence - Silver Spring, MD - Silver Spring, MD
Realtor w/Architectural Dimension, CRS, CDPE, CIAS

It really is sad what's happening to so many sellers.  Not just the media but agents not doing what they should to ensure sellers are properly informed and realistic.  It hurts everyone - all around the table.

Emcee

Nov 20, 2010 11:58 PM #135
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