I received an e-mail last night from a potential seller who interviewed us to sell their home 9 months ago.They decided not to place their home "For Sale" believing the market would shift "Upwards".
At the time the home located in Davie at Ivanhoe should have been listed between $440,000- $450,000 based on the closed sales for the past 90 days.
Unfortunately, the market shifted downwards,prices were reduced and realistically the home today should be listed at $400,000. Needless to say, the seller isn`t very happy with our opinion and criticized my assumption of the market and home sale prices.
As Realtors we can`t predict the market.We can give professionals opinions based on "fact", which simply means if the prices "Rise or Fall" it`s our job to keep abreast of the area of concentration we work in.
When a seller doesn`t agree with your opinion and refuses to listen to you, it`s wise to tell them the truth and wish them the best.In short " Pass on accepting the listing".
Our marketing strategy has changed from 2007, as we approach 2008, I`m very cautious to take a listing if I`m incapable of selling it within 6 months.Whereas, i would work with the sellers in the past by first accepting the listing at a higher price in hopes i could re-educate them, I won`t any longer because market conditions dictate otherwise. I`ve seen so many homes remain on the market for "too long a period of time" it eventually affects the sellers decision making once a legitimate offer finally arrives.
Many times this year I wrote about Sellers who refused to accept an offer because they felt it was "Too Low" when in reality the offer was completely realistic. The time and expense involved with these listings were no longer feasible because 9 out of 10 times the listing expired and the sellers naturally, want to "Blame You" for the home not moving,opting to select another Realtor to sell their home.
This year alone, I`ve watched 3 listing we had expire only to see, their still on the market 15 months later.
When a seller refuses to believe your professional opinion,it`s best to "take a step back" and let them firmly decide if they`ll agree with your opinion of what the home should sell for,if not don`t bother accepting the listing!
As 2008 approaches my motto for this year is "There are no miracles" pricing your home to sell will do!
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I think you have the right idea. Why waste time and money only to have it expire and they go with another realtor? If we all did this by sticking together, there would be no problem..
Scott you are preaching to the choir here at least. I have been saying the same thing since mid 2007. What many professionals do not realize, is there is a cost to carry unsellable properties. It is better to have less listings, market more effectively, and achieve results than to have a mountain of unsold inventory and unhappy sellers.
I fully agree! I have the words "No over priced listings" on my white board as a constant reminder to me and my Agents. Time is a limited resource that has be used properly- not on listings that will sit.
Rick,
Unrealistic sellers are the biggest drain to you and your staff. they expect miracles which can`t happen.
Allison,
This will be a very trying year for many sellers,who still believe "MY HOUSE" is worth more than "MY NEIGHBORS'..
Adele,
Very good point. Time and effort count.
And the people driving by your sign month in and month out, don't generally think, "Wow, that place must be overpriced", they tend to think, "Man, there's a Realtor who can't get the job done".
Good post.
eric,
in my neighborhood there is a home thats been on the market for almost 19 months. The realtor with the listing is out of idea`s to market this home. The price she originally listed it for was $100K too high. The sellers seem to still be in denial.
Scott - my strategy as well - I am through "practicing" my marketing skills.
Scott - I have shared this mantra for a very long time. I have never understood the agent that will tell someone something totally unrealistic just to list the house. It does nothing for the agents reputation to have their name associated with a home that does not sell. The kicker is when someone elses sign takes over their spot in the lawn.
Great post and you made some great points. It can be tough in a down market to be the bearer of bad news on values. Thanks and have a Happy New Year.
I'm with you on this, Scott. I've had sellers shocked and even referring agents shocked that I don't take every listing. Some listings are liabilities and just do not fit in my business plan.
Chris,
Nor do they fit into my plan as well. many sellers will not agree with you`re opinion or mine when it comes to listing a home, it won`t matter the home that remains on the market for an extended period only effects it`s own destiny which is the closing.
Brad,
Thank you so much.
Bill,
Reputation is essential to survival....:)
Kevin,
No point in pretending, selling a home in 2008 will be tough enough, taking an over priced listing only leads to a loss of energy and time.
Scott, I have to do this and have since 2005 up here. I am very polite and just tell them, I'm so sorry Mr. and or Ms. Seller, I am afraid I just can't help you at this time. You goals are not in line what the market is telling me from all the data I have shared. I wish you the best of luck, in the sale of your home. Please don't hesitate to call me should your goals change.
So far so good, 5 I was second agent him and all have sold put one.
Good for you!!!
Welcome to the unfortunate continuation of 2007. I had just gotten back last week from a similar one in Sunrise...they interviewed me a year ago. They ended up hiring the agent who listed their home. They didn't buy it from him...they just figured he had sold it once..they listed for 275 and it expired without selling..I kept in touch with them once in w while...they called me and interviewed me but the home is now worth 220. They are waiting to make an offer on a home in another state and I told them if you do not price it better within the market it will sit. They told me that the day they singed with the other agent...he was reducing the price before they even signed but they were locked in then.
It affects our credibility to take overpriced listings; when we walk away from listings, saying, "no, thanks," I think it sometimes makes a strong impression on sellers who, after running through other agents who "gave in" on price, come back to us, understanding we were the ones who understood the market in the first place and were not afraid to be forthright. I also think we may end up garnering just a little bit more respect when we stick to our guns and refuse to do what we know is not right.
Scott, I think you're right about being selective when taking listings. Our market doesn't even suck, and I'm very careful about what I take on. The combination of a high price and whiny seller can take its toll!
There was a week about 4 weeks ago I passed on 3 listings due to sellers price. Now getting 3 i a week was pretty good I thought and passing on all of them was crazy. But you are 100 percent correct
Scottt, "Take no over priced listings," should be our motto for 2008 (and every year). Good point.
Scott,
Thank-you for reminding me not to waste my time and money on overpriced listings.
Scott - great post. I've incoporated verbiage similar to what others posted above to separate the serious sellers from the rest of the pack.
Great slogan for 2008! and really any year....
Scott - The market changes will continue to dictate changes in how we conduct our business. I have found very few sellers who were realistic regarding the value of their home.
Scott, as primarily a listing broker my strategy has always been the same "If I can't sell it I don't list it" It's all about the price and always has been.
I never understood agents that took listings that were grossly overpriced. It costs money to market something you have no shot at selling. I have lost several listings recently to other agents who are still willing to take overpriced listings.
I guess their marketing strategy is to glean as many buyers from the listing as possible. Forget about good service to the person that actually hired you...
Scott: The cost to carry and the frustration of both the Sellers and myself have led me down the same road--NO MORE OVER-PRICED LISTINGS for me! I refuse to throw any more money at advertising and marketing wonderful property that is severely overpriced. As well, after about 60 days, the Sellers begin begging you to get the job done and asking, "Why, Why, Why?!" and when you tell them that the home is staged, a great home in a great location BUT, is simply not competitive in todays market pricing, they STILL refuse to drop the price. "I KNOW I can get X$$ out of this house! A year ago, my neighbor sold his house for more!" How many times have you heard that?!
I would say, don't even get me started but, as you can see--you already have! From now on, these over-priced listings can go to agents who have money to throw down the drain on property that WILL NOT sell at the inflated, Seller-insisted-upon price! (The truth of the matter is, the agents who DON'T have the money to advertise these properties [the newbies] are the poor ones that wind up getting these listings and then they become totally frustrated).
Happy New Year--BTW: I couldn't agree more with your new philosophy for listing in 2008!
Debe in Charlotte, NC
Yep, walking away if the sellers will not listen to your coaching is absolutely the smartest thing to do!