Sellers expectations

By
Real Estate Agent with Keller Williams Legacy

I finally have time to blog on my listing appointment from yesterday.  We had a referral from a relocation company.  We were competing with another agent to get the listing.  We still do not know which agent, nor which company we were competing against.  Using the numbers generated from the local Board of Realtors; our office sells more than it's 2 nearest competitors combined, and 1 of those competitors has more agents than our office does.  I use the last sentence not to brag, just to provide background for the point that I am trying to make in this blog.

We studied all of the comparables, went with what we saw the trends in the market and arrived at a top price for the home.  Without going into a lot of details about the home, the top price that we arrived at was a little of a stretch.  I would have tried to market it about $10k less just to generate interest on the home.  The relocation company is going to buy the home from the sellers and then re-list the home if it doesn't sell in the prescribed time frame.  We were honest, told the homeowner what they were up against, going over the positives of the home and the detraction's that may deter them from selling quickly, at a fair price. 

To be honest, the top end price might be reached if someone were willing to wait 160+ days to market it.  I had returned from the appointment, began filling out the required paperwork for the relocation company, when Darcy checked the email and the notification was there that were not going to get the listing.  I am not bitter, I was upfront with the sellers, I showed them our justification for the price based on everything that had sold in that size, age, area and style of the house, as well as what the competition is for the buyer's interest currently. 

In the listing appointment, I explained that the market is what it is.  Things are selling, it just isn't like it was a couple of years ago.  You can't just put a sign in the yard ask a price and get it anymore.  A couple of the comparables that we used (we used everything that we could find in the last 6 months, not just 3 active and 3 sold listings) have been on the market for nearly a year.  Their prices started out really high, and have continued to drop.  They are still a little higher than we thought that the absolute highest possible price for this house, in perfect condition would be. 

It's late and I am rambling, but my point is, agents, as professionals, need to educate expectations if we really want to provide the service that our clients need.  Anyone can tell a seller that they can get a high price for their homes and plant a sign.  There is a reason that our office sells so many homes, our broker spends a lot of time training us to do the right thing for our clients, even if it means being bluntly honest about the sales price of their home and the expectations of the market conditions. 

I guess that is my soapbox for this week.  Thank each of you for sharing your wisdom and experiences!  May everyone have a Happy Thanksgiving, and may our troops be as safe as possible and come home as soon as possible!  These are some of our Holiday wishes!!

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Rainer
19,006
David Swierczynski
Century 21 Hometown - Antioch, IL
Lake County, IL Realtor

Tony,

You didn't want that listing right now anyway. Just be sure to mention to the relo company that you'll be glad to help them in a few months after it remains unsold.

Have a good holiday,

David Swierczynski

Nov 21, 2007 04:33 AM #1
Rainmaker
352,639
Brian Sharkey | Broker | GRI | South Florida's #1 Broker
SharkeyRE LLC - Port St Lucie, FL
SharkeyRE - #SouthFloridaBroker
I won a listing appointment a few months back, I was up against a top producer for many years, his MO was to get the listing then work the "system" I went in after him and showed the owners details, reports, stats, and my marketing plan.  After it was all said and done I cam in $25,000 less and 2% more in commission but I showed value and I was able to give them realistic goals.  I bet in your case the relo company will kick in if it doesn't sell so you may have lost before you began.  Sounds to me like you Know the market and do your homework.
Nov 21, 2007 05:19 AM #2
Rainmaker
595,516
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Fl Real Estate

I don't mind not getting the listings that I don't think I can sell.  Comparables and marketability taken into consideration some times it's a stroke of luck to not get the listing. I know that doesn't get your time back preparing for the appointment but what's that saying...

 

    "It's better to be the second wife and the second listing agent."

Nov 21, 2007 05:31 AM #3
Rainmaker
21,487
Frank Verna
Frank Verna, PA - Jupiter, FL
Broker / Owner
Setting the right expectations upfront saves you sanity later, good move Tony.
Nov 21, 2007 05:49 AM #4
Rainer
202,725
James Gordon
Sibcy Cline Realtors® - Cincinnati, OH
REALTOR, PBD SFR SRS
Tony I have checked on some of the outgoing relocations that I have lost and a lot of times the seller has a preferred agent that they want to deal with. You get sent out to do a second opinion of value at no charge. The relo company does not tell you this but when you see a property listed by the agent that helped them buy the home it is obvious.
Nov 21, 2007 05:52 AM #5
Rainer
59,597
Krista Fuchs
Prudential Fox & Roach - Exton, PA
Chester County Realtor - (484) 459-8025 - Home Buying and Selling
I just viewed home that a relo company has had for over a year.  They priced it 100% higher than the surrounding neighborhood homes!  Granted it had a major reno done to it but it was overdone for the home and area so they weren't going to get their money back anyway.  Sometimes I wonder who is reviewing the Realtor info on the home that is being sent in to the relo companies. 
Nov 21, 2007 06:13 AM #6
Ambassador
611,919
Jeanean and David Gendron
Real Living, Real Estate Professionals - Redding, CA
Specializing in Selling Unique Properties

Tony, there are so many elements to doing relos that it is not worth your time to stew anymore. If it was because of price, you may eventually get it and you may not want it then. It is always good to hear these stories. The value of AR is that we can share these stories. Thanks for the post.

 

Nov 21, 2007 06:16 AM #7
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Rainmaker
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Tony & Darcy Cannon

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