You know the saying about good guys finishing last, well, I’m not so sure.
This recent scenario is pretty typical of a dilemma the real estate
agent faces every day.
I recently went on a listing appointment. It was a referral from a very happy
past client, the home was about 6 years old, professionally decorated and
had many extras. A very nice house to have listed.
EXCEPT…the seller didn’t want to move right away, they wanted to
list this spring and move in November.
I did my CMA and told them their price would be around $300K as the BEST
possible outcome. The house next door just sold for $270K and
they included a $10K item of furniture to seal the deal!
I was firm about my price, but I conceded we could start at 310K or 315K,
if they wanted to test the market for a few months.
They interviewed two other agents who had also been recommended.
They went with the agent who told them it would sell for $330K. That is what it
is listed for on our MLS now.
Real estate agents have to make a decision at the presentation.
Do we want to buy the listing at the higher price and deal with a disappointed
seller for 6-15 months?
The other option is to be firm and if the business comes your way it will be
salable and you will get paid for your efforts.
I recently listed a home for the correct price and it sold in three
weeks for full price.
If I had been the Good Guy wearing the White Hat and agreed to
their $330K price, I know I could have gotten the listing. Then during
the 5-6 months when they weregetting really serious about selling, we
could have lowered the price and it would eventually sell, maybe by
spring 2009.
What is the right thing to do?
Telling the seller the truth cost me a listing?? Yes.
My Deduction:
Listening to the client —+— Motivation —+ — Price
All of these go hand in hand to come to an understanding
with the seller. I wasn’t patient enough to offer the option of setting
a higher price and waiting with them to realize their price was unrealistic.
This has been the case with so many listings over the last year and a half.
So I suppose I’m wearing the Black Hat in this Situation.
Or will I be wearing the Black Hat when I list at their price and
it still hasn’t sold in 11 to 12 months? You betcha.
I will be the one who has failed to sell the house even though
the sellers set the price.
Copyright by Terry Westbrook 2008
Contact me: 1-888-240-1968 x 0 toll free
Grand Rapids Real Estate ~ Westbrook Realty
Email: terry@TerryWestbrook.com
This has been a topic of discussion in my little Coldwell office. We’re going into the 4th year of the market change but there are still agents who are willing to buy listings or who don’t ‘get’ or accept the market change. As far as I’m concerned, it comes down to the ethics of providing good service to your client. The example of your properly priced listing is a good one. If that property had been overpriced @ the beginning, it would have gained market time and probably would have been reduced some number of times – chasing the market. The end result for the sellers would have been selling for less than what they sold for – losing money @ the closing table.
Thanks for your comment, Deb. Chasing the market down is NOT the way to sell your home for the best price.
Unfortunately, this scenario is still playing out. We have found that overpriced listings are commonly due to market erosion, especially this past year. What an owner thinks his home is worth and what a bargain oriented buyer thinks it is worth are often many $ apart.
Unless the owner has equity and is highly motivated, the sale just doesn’t happen.