I WAS THINKING...MAYBE IT'S ALWAYS BEEN THIS WAY...

By
Services for Real Estate Pros with William S. Cherry & No Co., Wealth Coach

Maybe it's always been this way.  Who's to say?

It's reasonable to assume that most home sellers pick their Favorite Agent to list their home.

Wouldn't you agree?

But here's where the twist comes. 

Between the seller and his agent, a listing price is chosen. 

And if the Favorite Agent is a good one, and most are, through market research of recent sales of homes that are similar, that picked listing price is within the ballpark.

But here's the catch.

What happens if the home doesn't sell quickly enough to suit the seller?

Oft times the seller and the Favorite Agent go their separate ways, and a new agent -- the second choice -- is retained to carry forward the baton.

Rarely is anything changed about the property other than that the listing price is lowered.  Sure enough, within a week or so, the home is under contract with a buyer.

So it wasn't the agent that needed changing, it was the price. 

And the question that I often ponder is why the Favorite Agent was fired rather than the homeowner doing what was obviously the inevitable -- just lowering the price?

There is one Dallas agent I have watched for a long time.  The agent has made a good living and garnered a good reputation in the role of the Second Agent.

But rarely is thia Second Agent picked as the Favorite Agent.  Do you suppose when this agent is picked as the Favorite Agent, another Second Agent is picked to sell what she had listed that the market had decided was overpriced?

I swear I don't know.

BILL CHERRY, REALTORS

DALLAS - PARK CITIES

Since 1964

214 503-8563

WEB

 

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Topic:
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Texas Dallas County Dallas Lake Highlands
Groups:
Advice for Sellers
All Thing's Texas
Almost Anything Goes
The Art Of Marketing You
The Ninety-ninth Percentile
Tags:
home price
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dallas real estate market
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Rainer
113,160
Beverly Femia
Coldwell Banker Sea Coast Advantage - Hampstead, NC
Broker Realtor Stager - Greater Wilmington, NC Are

I bring this very scenario up when I know the home is overpriced and the only thing needed is a price reduction.  By getting in front of it, if the Seller is a good partner in the transaction, one is not likely to lose the listing. 

Apr 24, 2011 11:00 AM #24
Rainmaker
75,550
Steve Dobbs
RE/MAX Champions - Louisville, KY
Serving the Greater Louisville area

When the second agent gets there, the seller is more receptive to knowing that there is a problem.  PRICE!

Apr 24, 2011 11:11 AM #25
Rainer
128,407
Sylvia Jonathan
Coldwell Banker Platinum Properties - Irvine, CA
Broker Associate, SFR

It's obvious, Bill. The Second Agent is better at pricing homes, and because he/she knows you can't overprice a listing, most sellers will not choose the Second Agent. Sellers go with the agent who tells them what they want to hear!

Apr 24, 2011 11:13 AM #26
Rainer
289,000
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Kimo's Lifestyle Solutions

Robert, #20 is a professional and his reputation and integrity hasn't been compromised by an over zealous client. Picking a favorite agent isn't a one way street when dealing with a professional, the agent also chooses who to represent to avoid any mishaps, don't you?

Apr 24, 2011 12:25 PM #27
Ambassador
790,048
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Bill we have had 4 or 5 listings as the first agent that were overpriced and the seller refused to budge until they got the second agent. So Now we price like the second agent. But there are time we do not get the listing . They go with someone else. it does not sell. And the folks willnot come back to us because thery are embarrassed about not listening in the first place. It is a fun game !!!!

Apr 24, 2011 12:32 PM #28
Rainmaker
235,283
Jenny Durling
L.A. Property Solutions - Los Angeles, CA
For Los Angeles real estate help 213-215-4758

Of course it's about price.  Even in our current market, there are still agents who 'buy' the listing by sugggesting or agreeing to an overly high listing price. I've never liked this game but it seems to work for alot of agent. I'd rather tell the truth up front and not have to continually chase the market down. It can sometimes be difficult to compete if other agents are throwing out bigger numbers.

Apr 24, 2011 12:59 PM #29
Rainer
96,502
Larry and Marilyn Mennetti
FIVE STAR REAL ESTATE - East Grand Rapids, MI

IN MY LIFE, ALL I WANT IS TO BE SOMEONE'S FIRST LOVE, SECOND HUSBAND AND THIRD REAL ESTETE AGENT....LIFE WOULD BE SO GOOD!!!!!

Apr 24, 2011 01:11 PM #30
Rainer
161,936
Ray Waisler
Evolve Bank & Trust-Atlanta, GA Lending Nationwide - Atlanta, GA
NMLS #6621 - Specializing in Jumbo FHA & VA

Bill, I believe that some sellers are in denial and will only grasp the reality of needing to lower the price when it is reaffirmed by another professional. Kind of like when I tell my kids something, but it's not to be believed unless a stranger says its true. And even then, it's the stranger's truth and not the parent.

Apr 24, 2011 01:28 PM #31
Rainmaker
183,616
Jim Paulson
Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID
Owner,Broker

If more sellers asked their potential agents what their list to sales price ratios consisted of, these "games" wouldn't exist as often.  I am pleased to say mine is still at 98.7% over the past 10 years (as far back as our current MLS records go back).  Here, in Boise, Idaho; I won't take overpriced listings or it will goof up my averages.  I have told sellers that if they don't respect my price to please put a clause in their listing with the "overpriced" Realtor's listing that they can cancel at any time they feel that price offered by the agent is incorrect.  I have re-listed and closed homes based on this approach.

Apr 24, 2011 02:30 PM #32
Rainer
51,961
Jim Dvorovy
Cutler Real Estate - Canton, OH
REALTOR - Canton Ohio Real Estate

Its very easy to check the stats for any agent in our MLS. Every agent has expireds and withdrawns if they are actively working with listings. Yes, everyone comes in first, second, or third, its the nature of the business.

Apr 24, 2011 05:07 PM #33
Rainmaker
834,788
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

"Buying Listings" with inflated list prices has been going on for a long long time.

I knew one agent who did it deliberately, then told buyers "The price is X, but I can get them down to Y for you." And he did - he was a very effective "brow-beater."

Guess I don't need to say what else he was...

Apr 24, 2011 07:35 PM #34
Rainmaker
640,198
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro

Bill, Oh my this scenario goes on and on and on!!  I have been in both positions.  It DRIVES ME NUTS when they reduce the price to the price I requested with the second agent!! 

Apr 24, 2011 08:13 PM #35
Rainer
98,233
RhondaHeaslip NanaimoRealEstate
RE/MAX of Nanaimo - Nanaimo, BC

Too often in our business, it's the second mouse that gets the cheese.

Apr 24, 2011 10:19 PM #36
Rainmaker
1,273,076
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I have been there and it hurts.  I saw how cheap the sold it and commented, "I could have done that."

Apr 25, 2011 06:59 PM #37
Rainmaker
648,639
William James Walton Sr.
WEICHERT, REALTORS® - Briotti Group - Waterbury, CT
Greater Waterbury Real Estate

Goodness, this reminds me of one deal that I lost. I told the seller the right price, they insisted on their price, it expired, they gave it to another agent for the price I told them to list at to begin with, and it sold for that price. Go figure.

Which in most cases means that I would rather be the second agent as opposed to the first agent...

Apr 25, 2011 09:32 PM #38
Rainmaker
283,479
Kasey & John Boles - Jon Gosche Real Estate
Jon Gosche Real Estate, Boise ID - Boise, ID
Boise, Meridian, Ada/Canyon/Gem/Boise Counties

I don't know if you meant to be funny, but this post made me laugh.   Good post though - sometimes it's good to be the second agent!

Apr 25, 2011 11:43 PM #39
Rainer
68,804
Robert Courtney
Lihue, HI
Century 21 All Islands, RA, CDPE, MCRE, CIAS

Knowing the personality type of the Seller is key.  This will tell you how to best sell your self and establish a listing price.  Do this process carefully and there should be a 

Apr 26, 2011 03:35 AM #40
Rainmaker
134,204
Liane Thomas - Corona & Riverside Real Estate
The Jet Team, Allison James Estates & Homes - Corona, CA
Bringing you Home!

Ouch! Maybe the first agent didn't want to have that conversation with the seller and it cost them a sale...

 

Apr 26, 2011 02:55 PM #41
Rainmaker
122,426
Kent Dills
Broker, Dills Real Estate - Bellingham, WA
Real Estate 817-495-8028, Bellingham, Washington

Agree with Robert (#20) and Kimo (#27) 1000%.

 

Apr 26, 2011 03:59 PM #42
Rainer
16,572
Rosanne Fett
FHA home loan, VA home loan, zero down home loan - Dallas, TX
NMLS #205558 - Home Loan Expert, Jumbo Home Loan, USDA

I know this would be frustrating if I was the preferred realtor, but it really makes you wonder if the preferred agent isn't doing a great job communicating with the seller about being realistic on the asking price.   As a loan officer, I have similar experiences, because I tend to be the number 2 person.  I get the deals that others can't get done because I have frank conversations with the borrowers to learn all of the details and can figure out how to structure their loan to get it done. The challenge is getting realtors to refer their client to me first instead of doing clean up.  But I will admit is does get me referrals. 

Apr 28, 2011 04:31 PM #43
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Rainmaker
319,890

BILL CHERRY

William S. Cherry & No Co., Wealth Coach
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