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I got a call from an angry relative because YOUR listing is overpriced….

January 25, 2011

I couldn’t say a word…. it wasn’t easy.

Thumbs down

 

The web is a wonderful thing, at times. Got a contact through my website last night from someone in Arizona. Turns out she was a retired agent calling because her goddaughter has a house listed here that is not selling. She couldn’t find the house on Realtor.com and assumed the agent was doing something wrong. She had been looking in the wrong price range, she was 50 grand too low. She Googled Realtors® here and found…. moi. (FYI, this is not even listed by my company) So I got the contact from her.

I could hear her frustration, and she did understand that there was not much I could say. I gave her the agents name and phone number and wished her well. But… I am familiar with the house as I had showed it a while back. I felt back then it was overpriced, (as did the buyers) and the price hasn’t changed although recent sales in the area say this is overpriced by quite a bit. Probably at least $75,000!

This is a relo situation, the BAC is a great tip off on that one! My guess is, after doing some research at town hall for recorded mortgages (when my buyers were semi interested), this is really a shortsale. The mortgage amount owed plus commissions equals disaster. And now, according to godmother, we have is a husband who has already transferred, a wife with children left home in a house that is not selling, tons of snow and a bad driveway for the woman to deal with, and a retired agent from another state who is getting ready to interfere, all totaling up to one big mess.

I admit, I don’t know what the agent has told the home owner. I do see this time and time again here though. Overpriced listings and agents telling us what their clients need to get in order to sell the house. And I wonder, where have these agents been living for the past few years? Until we are all on the same page things will not get better. Telling people what they want to hear is easy in the moment. Telling them the truth is harder in the beginning, but much easier in the end.

I realize I probably lose listings because I am too honest about pricing. The last one I lost out on is still on the market. First there was a $10,000 bonus to the selling agent if in contract by a certain date. (I personally disagree with the selling agent bonus. I believe it is against the whole buyer agency idea to push a buyer towards a house because we make more money on it, but that is just me.) That date came and went…. 4 months later the price has been reduced by $25,000, now down to the highest price I would have listed it at back then. The sellers are in a bind because the husband is already at his new job out of state. And that one was not going to be a short sale by any stretch of the imagination!

Or how about the agent that has complained that the 4 offers that have come in were $120,000 plus/minus under list price. All 4 offers were pretty much the same. All 4 agents and their buyers were crazy. (true story, I listen to this one all the time) This affects us all.

In a market where buyers are not always readily available, where home prices are always in question, when many of your clients are in danger of a foreclosure, when they have to move, why oh why would you overprice a listing?

But the bigger question is… why is it MY fault?

Rant over.. Perhaps I will reword this and make it a public post in the near future, but for now I just had to release the pressure valve!

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