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 !!!!!

 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

>> Dont miss other upcoming blog entries from "ThatBritishAgent" !

Subscribe to Sheldon Neal's blog here !

 

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

 

Posted by

 

Follow Sheldon on these sites below !

 

                            

 

 

 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

 

 

close

Re-Bloggged 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
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tree to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Home Selling
Groups:
Club Chaos
Cosmic Cow Pie...The Rome Way
BananaTude
Tags:
pricing your listing for sale

Comments 134 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the pants to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainer
258,202
Kimo Jarrett
Kimo's Lifestyle Solutions
WikiWiki Realty

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.

November 12, 2010 12:56 PM
Ambassador
650,152
Sheldon Neal
That British Agent Bergen County NJ
Bergen County, NJ - RE/MAX Real Estate Limited

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 !

 

November 12, 2010 11:29 PM
Ambassador
650,152
Sheldon Neal
That British Agent Bergen County NJ
Bergen County, NJ - RE/MAX Real Estate Limited

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 !!!

November 12, 2010 11:38 PM
Rainmaker
306,108
James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes
When Looking to Buy or Sell - Make the Right Move
Real Living | At Home

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!

November 14, 2010 08:48 PM
Rainmaker
201,669
Emcee M. Arah
CDPE, CIAS-Realtor with an Architectural Dimension
Remax Excellence - Silver Spring, MD

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

November 20, 2010 11:58 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the leaf to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Ambassador
650,152

Sheldon Neal

That British Agent Bergen County NJ
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the woman to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Cerified Distressed Property Expert


Locations of visitors to this page

New Jersey Real Estate Agents