I Didn’t Get the Job

By
Real Estate Agent with Prudential Rubloff

I went on a listing presentation this week and I didn’t get the job. I am a competitive person and I don’t really like to loose out to another agent. However, character and integrity are all I really have. I will not lie to people. I will not tell them what they want to hear just so they like me and I get their business. It is a tough market out there and we all need to be realistic on pricing.

Going in, I knew that they paid more for the home than it is currently worth. I presented 3 comparable properties; all were of similar size, age, construction and location. They all closed within the last 6 months. The comparable homes sold for $480,000, $495,000 and $545,000. The one that sold for $480,000 was the closest in terms of condition and updates. The home that sold for $495,000 had an updated kitchen and updated appliances. The larger home for $545,000 had a top of the line gourmet kitchen and updated baths. I told the sellers that they needed to price their home closer to the first two, maybe starting out at $499,900 or $509,000. If they want to sell in a reasonable amount of time, they need to get the pricing right the first time, or they will linger on the market. There is about 14 months of inventory on the market in their price range.

The next day I received and email from the seller asking: “Do you have any other comps that you considered in addition to the 3 presented?”

This was my reply: “I could pull other listings and make the numbers say anything you would like, numbers are easily manipulated. However, a higher listing price will limit the number of showings and prolong the listing time. Even if we do get a buyer to write a contract, the banks will use these three sales to determine the assessed value. If that number is less than what the buyer said they will pay, there is a good chance the buyer won't get the mortgage anyway.”

Well, the other agent they called in pulled three “comparable” properties and somehow came up with a list price of $650,000. Wow, that means one of us is off by more $150,000. That is a lot of money. Needless to say, they went with the agent who told them their house was worth way more than it actually is.

Am I upset I didn’t get the listing? No. I can’t sell a house that in my opinion is listed so far above what other homes in the neighborhood have sold for. I wish these sellers and their agent all the best. Who knows, maybe I will get to be their second agent.

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Topic:
Home Selling
Location:
Illinois Du Page County Wheaton
Groups:
Art of Professional Salesmanship
Northern Illinois Real Estate Professionals
Prudential Network
The Art Of Marketing You
The Secret
Tags:
wheaotn real estate
real estate sellers

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Anonymous
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Rainmaker
135,446
FAJARDO DELACRUZ
Century Homes Realty Group LLC.

Sherry

I had something similar happen to me. But it was more of a commission then price. I asked for 5% the other agent went for 4% and the price was $15,000 more. The listing is going on eight months now and the house is still up for sell. Should I go back when the contract expires in about two months.

January 20, 2009 11:13 AM
Ambassador
1,036,061
Jim Crawford
Jim Crawford Atlanta Realtor - Atlanta Real Estate
RE/MAX Paramount Properties

650K!  In this market when the comps do not support it?  The other agents should be brought up on ethics charges.  When this used to happen to me in the past, I used to explain to the sellers it was buying a listing. 

January 20, 2009 03:37 PM
Rainmaker
441,828
TIM MONCRIEF #1 KW Grp '07-'12; AUSTIN-nwmc
Four Points Specialist, #AustinRealEstate
Keller Williams Realty/Bartlett Real Estate Group

Just learn from the experience.  I farm a neighborhood that has a swing of well over $100/sf.  Part of my presentation is to tell owners this and that it is very easy for other agents not to compare apples to apples.  I turn it into somewhat of a joke by saying that I can use this differential to help homeowners with their tax values as the county is about as clueless as many agents that do not know the area. I mention this as it can be very easy to get valuations that are dramatically different.

Now that seed is planted in their head.  I just one a listings at $688k and my competitor was at $749k.  Not as dramatic as yours, but the idea is the same.  So who did the owner call.  Me.  He pulled out the agent's comps and asked me to explain them and I did.  I told him that I would love for his home to sell at $749k, but my job is to sell your home, not list it.  I say, as you can see $749k is not the market; moreover it is not in the radar screen of the market.

January 20, 2009 04:58 PM
Rainmaker
325,145
Esko Kiuru

Sherry,

There still are sellers who refuse to accept what the real estate market is all about today. In this case here, the sellers will start thinking about you in a few months when the house keeps sitting there unsold, likely with not one offer.

January 20, 2009 05:14 PM
Rainmaker
113,977
Sandy Fenton
ABR, ASP, CDPE, GRI -Westchester NY - Condos to Luxury Homes
Keller Williams NY Realty * Licensed Associate Broker

I  have a friend that says she wants to be the first love, the second wife and the third Realtor.  ;-)

You did the right thing.  Better to turn them down now than let them down later. 

January 23, 2009 10:15 PM
Anonymous
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Rainer
88,307

Carol Spengel

Wheaton IL
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Additional Information

I believe your home is a critical component to the quality of your family life. I specialize in marketing and selling homes in Wheaton, Glen Ellyn and around DuPage County, Illinois.