Melbourne Real Estate News, Brevard County FL Real Estate by Sandy Shores REALTOR®

Finally. 

I have been telling sellers that too. I have turned down overpriced listings because it's just not going to benefit me or them to list it. There is a cost to market property. If it's overpriced, we just spend money and don't make anything back on it.

Hi Sandy, I agree with you. I think many sellers and agents are finally starting to get it.

I agree with you the key to getting your home sold is to price it to sell in today's market.

Frequently nowadays I'm the deliverer of bad news. But sugar coating is not the answer - it's  recipe for failure. I think that realistic pricing is one of the factors that make it such an exciting time to be a buyer - low interest rates, $8K first time buyer credit, and willing, amenable sellers. It's a fabulous time to be a buyer. An unrealistic seller will get nowhere.

Liz

Hi Sandy, I couldn't agree more. I have "lost" a number of listings because I declined to list an overpriced property. 

We have turned down about 6 listings this past year because of debate over price.  When a Seller is that out of touch with reality then it is not wise to take that listing.  Even if you did end up getting a contract, appraisers have gotten stricter and the sale could still not go through.

If we hear a Seller say I will just put in on the market and wait till it sells for the price they want, no matter how long it takes, that is usually our cue to end the appointment.  We have yet to have an expired listing and hope to keep it that way.

We declined a listing the other day because the seller wanted to list their home at 130k.  Nothing had sold in that area for more than 105k over the past year.  I've also had 4 listings in the same subdivision.  I know the area.  The seller was angry with me but hey why should I take a listing that I know isn't going to sell.  I don't have time to waste.

Taking an over priced listing only will lead to a lot of work , no success, and likely in the end the seller not liking the agent as the home won't sell,

Sandy Shores- it's been like that for a while...most sellers are coming to terms with it now.

Hi Sandy

You are right on target, just say no to overpriced listings.

Good luck and success

Lou Ludwig

I couldn't agree with you more!  No listing agent wants to take on a client that they can't help!  Sellers sometimes just don't want to admit that we know the market, and their expections cannot always be met.

I advise sellers that are willing to list at over-inflated prices, to just wait on the market to improve before they put their homes out there.  That way, there is less inventory to compete with, and their stagnant listing will not be holding down the numbers.

Sandy it is simple good business.  We do not make anything on a home that will not sell.  It is actually a drain on our business since we will be putting time and effort into a home that will not sell as it is.

The sad part is that there are still MANY agents out there that are taking listings at ANY price and then beating the sellers down with price reductions. If the homes were just priced right to start with (with the agent who told them the truth in the beginning) it would have sold for more money much faster.

I was looking at the financials for 3 homes I'm showing tomorrow and all three are above market value, two have 2nd mortgages, and all three need special showing instructions.... Crap!

You're spot on, Sandy.  I've often wondered why sellers refuse to lower their prices when a property has been on the market for, sometimes, a year or more.  Although, my parents built a home that they have on the market for only what they built it for and it is still not selling.  They refuse to lower it any further than that.

You're a straight shooter for sure Sandy. You tell them. Congratulations on your Gold Star.

Though Sellers have come a long way towards being more realistic about pricing their homes, they've still a long way to go.  If more agents would just refuse to take listings at unrealistic prices it would get sellers to price realistically alot sooner.  Hats off to you for refusing to go along with their unrealistic pricing!

Yes you'll save yourself a lot of time and trouble by saying NO every now and then.

Nice post.

Travis

Hi Sandy, Nice post. Thanks for sharing..

Best - Sash

Sandy - I recently walked away from several listings, I showed the potential sellers the numbers but they had other ideas.  Some people just can't adjust to the shift in the market.

Sandy: Great information. Advertising cost way to much to market a home that will not sell. I hate flushing $$$ down the drain

Amen Sandy!

Hi Sandy -- it's very sad that agents keep accepting these over priced listings instead of educating the sellers on realistic expectations in their current market.  No one is helped (or getting paid) by over priced listings.  Locally it is becoming clearer (in my opinion) that there are sellers now listing who feel they will soon be in a short sale situation or worse.  It's my thought that these sellers need to be told the brutal reality of current market conditions in order to help them avoid the foreclosure route.  I think a short sale would be less painful and the better of two evils than a foreclosure?

If they refuse to believe reality than I'd have to pass on the listing as I wouldn't want to waste the money on trying to market it.

With so much inventory already on a glutted market for buyers to choose from sellers who just want to test the market should stay out of it!  For sellers who don't need to sell at this time the agents in my opinion should be advising them to wait to list their property.

Sue of Robin and Sue

This is very hard to subject to tackle, especially since no one knows what housing prices really are. Because of the Short Sales and Foreclosures a home that is a typical transaction doesnt stand a chance

Realtors should be honest and up front with market value. The seller may not be able to afford to sell. Would'nt be better to know that, before you spend months advertising only to have an expired listing and an ex-customer giving you a bad name.

Sandy, I had to let one go last week in the community where I live and it was a little tough, but I walked out with my self respect.

Overpriced listings are like the overripe produce at the grocery store.  It will sit too long to ever sell at market price.  You have to price it correctly at the beginning, and if that does not happen, it may never sell.  Once realtors understand that "buying" listings costs them in time and other resources, they no longer engage in this practice. 

You can take a listing...you can get a listing...but if you BUY a listing....as toooo many agents do....and then don't look at the all important bottom line...you can be responsible for taking a homeowner to foreclosure because you listed the property for what they said they "had to have". Let's hope that it's old school...let's wish that boards would pursue agents with ethics violations when clearly there is no support for the price....that would be heaven and really clean up the profession !

Hi Sandy,

Good Post...I could not agree more.  I think the entire market needs to be reevaluated by the listing agents & sellers.  I just wrote about this last week, with a little bit of a fun spin on it.

Please read & enjoy.

http://activerain.com/blogsview/999972/So-I-have-an-ideaLets-shut-down-the-Real-Estate-market-for-1-week

Kathy

May as well not list your home if you need $50K more the foreclosure home down the block.

So very true!  The home also has to be in tip top show condition.  Thanks for the post!

I currently have zero listings because of unrealistic sellers. There are so many agents desperate for business they will tell a seller what they want to hear. That's fine, but, do NOT be surprised when I bring an offer Lol....

Sandy,

Great Post!! and it is the Truth!

I have said to a Seller , that if they want me to pour money into, advertising and marketing their house, then I not only want a realistic price, but at least a six month listing contract!!

There will always be agents out there who will take the listing no matter what price the seller wants. They just want the listing inventory. They don't understand this COSTS them money / time if they don't sell it!

I lost a listing and my cma came in $50,000 lower than the seller wanted. He went with an agent who told him is wish price was "no problem." That was 6 months ago and it's still not sold.

I think in any line of business, "no" is a word that business owners shouldn't be afraid to say.

"Yes" often times has a way of getting you in a position to over promise and under deliver.

It pays to be picky because pretty much any listing you provide full-service on is going to take at least 20-30 hours of your time.  And if it is overpriced it will probably take double that because you will have to service it for much much longer.  I have gotten super picky on the short sales I will take.  If I don't think the seller will be cooperative or if the financial situation regarding the numbers and the liens don't jive, I tell them sorry and then refer them to somone else who is hungrier than me.

Sandy..a good motto..."Just say 'NO' to overpriced propertys." 

Just say NO is right. I say that all day long but these Manhattan New York sellers sometimes are not hearing it. I suppose we have to repeat it over and over until our voices are heard!

I turned down one of these overpriced listings and watched a Realtor in my office take it for a 10% inflated price on a good day. Six months later he got it under contract, and 45 days later closed it. I started putting in the money value of time and added it to the marketing cost, and then in the bonus round through in the grief I am sure the homeowner was giving him. When you total it up, that time could have been better spent on realistic listings. I don't think you turn a profit, and you do a disservice to other Realtors in your area because you skew the days on market numbers. Maybe these Realtors who do this ought to be given a copy of the book Purple Cow. Even with exceptional marketing, you need an exceptional product.

Am glad that this finally happening !  Also, it would be great if sellers and Realtors withdrew those listings that have zero chance in selling.

Sellers need to see the comps, especially expireds. "Mr./Mrs. Seller, the expireds are the prices that homes don't sell. If this is your price, then it's in the "don't Sell" price range and your ouse won't sell either"

 If they understand then fine. If not, then thank them for their time and say goodbye..

I agree, and I have done so many times.

I then see the home being listed for a to high of a price and it will sit on the market for a very long time and finally sells for the price I had given them months ago, or it never sells and the listing expires.

You said it! Why take a listing when you know that in a week you are going to ask the seller to lower the price? It just makes it all the more disappointing.

Hello Sandy!! Congratulations on your featured post - definitely well deserved.  I couldn't have said this any better. Great post!

Amen sister!   I have heard Realtors say well I need the listing.  I just say I don't need the headache!  Thank you for a great blog

I certainly agree however sellers often think of assessed value and not market value when pricing (in my area anyway).  It is hard for sellers to understand that when they are paying taxes on 645,000 why they are listing their home for 500,000 or under. I truly believe they are trying as well as we all are to understand this market. I think it is going to get more difficult because many towns here are going through re-evaluations and the towns are assessing the properties higher and we are asking sellers to reduce their list price. Many question if their house is not worth x amount how come they are being taxed on y amount. This is what I am hearing. As far as saying "No" to over priced listing it does make perfect sense now a days. Good Luck all.

Hi Sandy -  The truth and nothing but the truth - that's what it is!  Congratulations on the feature.

Mary

Sandy - you have it on a topic that I talk about every single day. The reality is these sellers are competing with agressively priced properties (which may be REO's or short sales). And there are Realtors who are saying no. I recently met with prospects, and they wanted to price it $300K higher than I did. It is amazing despite all what is happening that sellers are still not realistic.

Sandy - So true.  In this market, even my Humboldt County real estate market we're seeing the same.  Sellers have to either price their homes competively to compete with the other homes on the market (and many are short sales and foreclosures) if they want to move.  Price it right the first time.  Of course I tell sellers that I don't have a crystal ball and I can't see the future, but based on what's going on in our economy they'll probably get more $$$ for their house today than say a year or two from now.  So sellers have to decide what's important for them.  If they want a higher price they may have to wait several years to get it.  So the question is for sellers.  Are you in a position to wait 4 to 7 years possibly?  If not, then lets price the home where the market is wiling to accept and help you move on with your plans.

Sandy I am glad to say I did this twice last year and the sellers went with another agent and niether sold.  So much for I told you so.

We have done it too, and have heard of others starting to say know. I would have to speculate that one of the reasons for no longer taking the overpriced listings for some agents is that they take time can money with no return in sight. Times are tough and we are working harder than ever, not for free though. ~Rita

Sandy, love this. I just lost a listing this week, well I never had it but...they didn't like my price point.

I was disappointed as it was an AR referral, but I couldn't and wouldn't list it at the price they wanted which was 30K higher.

So they picked a Realtor who will take it at "their price" and then reduce, reduce, reduce.

Gee we are not stupid we look at comps and give them the fair market value.

What good does it do if you can't get the property sold. Better to put your efforts into generating leads for the future or learning new technology to use when things get better. To not sell an over priced listing is wasting your time when you could be educating yourself.

There is some good to the down times. It allows us to get up to speed on learning new things.

Wonderful post and very true! There is a lot of time and effort to listing a property. Taking one on that is very unrealistic sets up a negative situation for all involved. It isn't fair for the sellers to not be informed by the realtors, and most will appreciate the honestly. I am working with a client now that was unhappy with the realistic price but thankful for my honestly because he was allowed to hold an unrealistic price for over a year now. And, we will be listing the new properties this week.

I agree. "No" can be the most empowering word in the English language.

Always remember, however, that the real sale never begins until the prospect says "No." That's when real selling begins. That will also be true when you refuse to take a listing at the price the client wants it offerred at. Start selling and you can still obtain the listing at the RIGHT price!

Rarely do I take an overpriced listing anymore.  Had to learn the hard way. 

Yes, yes, yes! I thought I was the only one frustrated with unrealistic sellers. I have declined listings many a time. Haven't regretted it yet. I have told sellers that "I am in the business to sell houses, not list them".

I agree! Great post, Myrtle Beach Real Estate has problems with sellers like that all the time!

Our Team has turned down more listing this year than we have taken. We decided to stop taking overpriced listings. It is a no win situation for everyone involved.

I'd rather be the Realtor who picks up the listing after it was overpriced and didn't sell the first time. We've declared this The Year of Not Wasting Time and overpriced listings waste more time than almost anything else.

Well, either the seller is going to get the price right...or they can wait around until the market forces them too. If the latter, we just have to decide if we're going to go along for the ride. Sometimes we do, sometimes we don't - it's often a gut feeling you have about the sellers and whether or not you think they'll come around. If we sense that they're just playing around, we won't bother.

Dear Sandy,

Maybe someday they will get it!

Thanks for sharing!

Barbara

Sandy,

Congrats on the gold star!  Great information as always!

Ann Hayden in cold Wildwood, Missouri

Lenn, Amen and hooray!

Jenn, Overpriced listing are a lose/lose situation for everyone involved.

Mike, I have seen many agents in our area, finally "getting" it.

Pat, No use listing it, if it's not going to sell.

Elizabeth, So true, it is a fabulous time to be a buyer.

Silvia, I hope that you don't consider them "lost". Consider them good thinking on your part.

Christine and Jennifer, A lot of sellers in our area are doing just that, putting them on the market and waiting for them to sell - competition is fierce with the short sales and the foreclosures.

Sandy,

Well said.  There are still agents who will take an overpriced listing in a heart beat, just praying someone will pay the price.  An overpriced listing is a liability not an asset.

Justin, Pricing is definitely key, that's for sure.

Bob and Carolin, All great points - so true. 

Hi TO, We are hoping that most sellers are coming to terms with it now.

Lou, So right, the key is just not to take the overpriced listings.

Deanna, We don't want to get caught with sellers that we can't help.

Larry, It is a drain on our business when we take an overpriced listing.

Susan, I agree, pricing the homes right from day one is the key.