To Take Overpriced Listings Or Not to Take Overpriced Listings?

By
Real Estate Agent with RE/MAX Realty Group MD102148

I wanted to list the house for tens of thousands more than they wanted to get because I just loved the way they had decorated their house and the fact that they had raised their kids there. They kept trying to convince me otherwise and they didn't want me to waste my time and their's in an exercise of futility by listing an overpriced property. They tried to convince me that the house was worth less than what I thought it was worth. They spent hours going over an amazingly professional CMA that they had prepared. They showed me the most relevant comparables adjusted perfectly to arrive at the price they suggested. They provided me with an extremely well thought out analysis of the current market in the area. Because they had sold 20 houses in the last year, they let me know the buying public would not react well to an overpriced listing in this market. I thought about it long and hard and decided to find another seller that was willing to price their house for a lot more than quantifiable data would suggest. I had a gut feeling.

So, that's really not what happened at all. It's actually the opposite. As agents, we spend hours upon hours analyzing the data to arrive at suggested market value range. We take into consideration the market conditions, our years of experience with buyers and everything else that goes into it and because they have a gut feeling they ignore the data.

Many of these sellers list with agents and eventually the prices come down. The house sells for less than you or I suggested because after 100 days of being overpriced the sellers have to go quickly and the listing has become stale. Many times, the seller will even choose another agent, not me or you, because they don't want to hear the old "I told you so" .

Do you think that you should take high priced listings hoping that the sellers will eventually come down or do think you are better off telling the truth and letting the chips fall where they will-even if you don't get the listing?

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Rainmaker
226,009
Mike Wong
Realtor, GRI
Keller Williams Realty Southwest

Im honest with my sellers. If it is overpriced I tell them.

Sometimes Im the 2nd, 3rd, 4th, or 5th listing agent in some cases, I ask them why they think the property did not sell with the other agents, and they are forced to admit it. I offer to work things thier way the first 30 days, but warn them they are compromising the perception of the property when I demand a significant price reduction or listing termination.

A listing terminated by the agent? That gets their attention and I make sure they understand it is a privilage to work with me. I also explain my reputation is based on results, and I will not let a listing compromise my business reputation that I have built.

I admit I have taken a commercial listing that was slightly overpriced, but I also got them to agree in advance to a reduction after 90 days on the market. Why? It has highway frontage with 40,000 cars passing it daily. My large commercial sign there will give me more leads I can convert, more business, more branding, more exposure.      

June 19, 2008 12:46 AM
Rainmaker
142,381
Cristal Drake
Realtor - Fullerton Real Estate
Prudential California Realty

I love this post.  I hear so many people taking listings that are over priced and get them to lower later.  They take the sign calls, etc... but I just really think our job is to be honest and sometimes tell the seller things that they just don't want to hear.  It is tough and you are right.  The last thing you want to do is chase the market down and take any ol listing out of desperation.  I am so pleased to read the comments too.  There is so much integrety here, it is so great!

June 19, 2008 12:54 AM
Ambassador
894,389
Missy Caulk
Realtor - Ann Arbor Real Estate
Missy Caulk TEAM

Generally no, I won't take one over priced. I have taken a few to give it a shot, with a price reduction signed at the time I take the listing. Right now I am telling my sellers, 5 showings, no offer the price is coming down. There is too much inventory out there to wait and play catch up with the market.

June 19, 2008 06:18 AM
Ambassador
1,036,061
Jim Crawford
Jim Crawford Atlanta Realtor - Atlanta Real Estate
RE/MAX Paramount Properties

In this market the answer is no!  Leave them for your competition, and have the sellers drive them out of business asking "Why isn't my home selling?"  Agents that take overpriced listings are not professionals.  Would you respect a doctor that wasn't man / woman enough to tell you have cancer because it makes them feel unconfortable?  What about the patient?  It isn't about the agent getting the listing, it is about serving the clients!

June 21, 2008 11:33 AM
Rainmaker
96,344
Elaine VonCannon
Coldwell Banker Traditions

I tell the sellers like it is.  So I tell them they need to get another agent.  90% of the time they call me and want me to take the listing anyway.  So I  make a deal with them and tell them if we have no calls or showings in 3 weeks then we lower the price.  If they agree then I take the listing.

June 21, 2008 06:03 PM
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Meyer Leibovitch

REALTOR Boyds, MD
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