Losing the listing because you tell the truth? Happens all the time and I'm fine with it. Over the years I have lost several listings to a competing agent because they agreed to list an overpriced home. When I arrive at my listing appointment, I am always fully prepared to "walk away" from a seller who is unwilling to budge from "their" price. It seems there is always an agent willing to take an overpriced listing either from lack of experience, desperation, or they have infinite supply of marketing dollars to waste. I do not have the time or the money to waste on an overpriced home. Marketing a home correctly is expensive and time consuming.
It's amazing to me that in this day in age of the internet and the statistics available to sellers, that they will still pick the agent who agrees to a high price rather than listen to an experienced agent with cold, hard market FACTS. I'm straight forward with sellers and tell them "like it is" rather than "what they want to hear". The current market determines the value of a home, not the agent or the seller.
I have turned down more listings in the past year than any other. My experienced sellers realize I'm watching out for their best interests and they appreciate my candid approach. You will demand more respect in the long run by turning down business today. Many times, the property is listed with another agent who agreed to the higher price and it sits on the market "unsold" and then I get a call from the seller later. I love listing properties on the second go around. Respect the experienced agent's advice and price the home correctly the first time.
Well said Todd. Price is king, but so many refuse to accept it!
The most important part of marketing in this market is price because there is so much competition, some homeowners will never learn.
Hi Todd, you are so right. We are faced with too much inventory and many buyers on the fence, so even pricing right isn't always the key in times like these, but boy do the overpriced homes stand out.
I don't believe the homes that are overpriced are even marketed outside of the mls. Unless like you said, there's an "infinite supply of marketing dollars to waste." I doubt it. Some agents feel like they can capture buyers but in today's market, even buyers know better.
You are absolutely right, Todd. And the kicker is this: you probably would not want to work with that seller anyways! Its amazing how an Agent can tell a seller that the listing is overpriced, the seller will argue tooth & nail that it is NOT overpriced, but then the seller blames the Agent if the listing doesn't sell at that price! What a headache and a waste of time....move on to the next listing and keep truckin'. Great post.
I tell folks all the time I'd rather disappoint you right now than six months from now after 4-5 price reductions and your home is still on the market.
Some homeowners want their price, and you can not talk them down. I don't like to take overpriced listings either, I feel it is a waste of marketing money. However, I have in the past if they are referrals or friends. I have just explained to the sellers that if we are not getting any showings, here is the aggressive reduction plan we will follow. That approach has worked well for me.
Todd: And those that take the high priced listing are to be pitied! They have not had the pain of angry sellers blaming them for no showings yet (usually). So you wait in the wings and get that one on the second or third listing! I have developed a rep for myself in my home town as being the broker who can sell homes that others can't. By the time I get the listings on the second or later round, the sellers have softened up on price and are much more flexible!
Todd: I'm not sure if it's commanding more respect (who's to know you said the "right" thing if the seller is leaving the area anyways?), But the way I see it is that if the seller goes to the highest bidder, cest la vie, My job is to sell homes, not babysit people until I can convinve them they're overpriced. Let another agent spin their wheels with an overpriced listing.