Overpriced Listings

By
Managing Real Estate Broker with Long & Foster

Even after 5 years or so of declining prices in my market, it's mind boggling to watch agents, many of whom are not local to the market, taking listings at prices which are very clearly bloated and overpriced.  I truly think agents are walking into the homes of sellers and they ask the seller how much they want, kind of like what they do on Pawn Stars.  "How much do you want for this.?"  The seller says $250,000.  The house is worth $200,000.  The agent gets them "down" $20,000, feels a sense of victory, and walks out with a listing for $230,000.  While it's $30,000 overpriced now, it's possible that it will be $35,000 overpriced with another market "correction".

My comment to this type of agent:  You are a walking mess.  You have no right to be in the real estate business.  This is exactly how NOT to price a home, and all you are doing is setting your client up for failure, and cluttering the market with garbage, unsellable inventory.  which , of course, creates more overpriced sellers because you were too damn lazy to figure out what sellable local listings are and have recently sold for.  You are wasting everyone's time, including yours, which doesn't seem to have much value, anyway. Sorry to rant, but this is almost an epidemic. What the seller paid for their home has zero  (ZERO) to do with today's market value.  Ignore what they paid. 

So, before you make this mistake again, preview a few properties.  Spend a couple hours on researching what the home is truly worth.  Take your time.  And if you have made a huge mistake like this, own up to it and tell your client, immediately.

 

Posted by

Michael Elliott / Keller Williams Realty

www.michaelelliottnj.com

1814 Rte. 70 East

Cherry Hill, NJ 08003

Cell (609) 864-8164 

Off (856) 685-1607

I serve Mercer, Burlington, Camden and Western Ocean & Monmouth Counties in New Jersey.

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Rainmaker
748,288
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor Based in Jax Beach, FL

It's not happening here that much anymore, thankfully.

March 02, 2012 02:54 AM #1
Rainmaker
1,557,788
Captain Wayne Rowlett
Rowlett Real Estate School LLC - Destin, FL
Florida Real Estate School

Hey Michael, great blog, you have some good points here. This is where a CMA to show the seller comes in handy.

March 02, 2012 02:56 AM #2
Rainer
20,766
Michael Elliott
Long & Foster - West Windsor, NJ

Ok, then ignore my hollering !   :-)

March 02, 2012 02:58 AM #3
Rainmaker
529,560
Ed & Tracy Oliva
West USA Realty - Arizona - Pinetop Lakeside, AZ
Arizona Agents

Michael I think it is the duty of the listing agent to set the price to the currant Market.If a seller does not want to be realistic to currant market condition's they lose. good luck   E

March 02, 2012 03:08 AM #4
Rainmaker
1,351,119
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Never ask the seller what do you think it is worth either. The wrong ways to price a property..sellers have lots of clever but flawed methods we can get sucked in to or swerve to avoid to stay on the trail to more real estate property closings. 

March 02, 2012 03:25 AM #5
Anonymous
Anonymous
Anonymous

Amen! I think some agents overprice listings because they ANY listing is better than NO listing! They fail to consider what happens to their reputation when their sign is in front of an unsold home for 6 or 12 months!

March 02, 2012 03:46 AM #6
Ambassador
2,347,033
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Property valuation is NOT a focus of real estate classes and agents are expected to learn this from experience. 

Property valuation is critical for listings AND selling agents.  I did a CMA study yesterday for a current buyer.  It gave them valuable insight into the property in which they have an interest.

 

March 02, 2012 03:54 AM #7
Rainer
20,766
Michael Elliott
Long & Foster - West Windsor, NJ

Great point, Lenn. 

March 02, 2012 04:30 AM #8
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Rainer
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Michael Elliott

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