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Why take on a house that you know is over priced in the first place?
I mean wouldn't you as an agent let the seller know that most likely their property will not sell because it is over priced?
I ask again because of my former neighbor. If their agent had been upfront, they probably wouldn't have gone through 4 agents and that long for their home to sell.
Why take on a house that you know is over priced in the first place?
I mean wouldn't you as an agent let the seller know that most likely their property will not sell because it is over priced?
I ask again because of my former neighbor. If their agent had been upfront, they probably wouldn't have gone through 4 agents and that long for their home to sell.
I don't take listings that I know are overpriced. As a matter of fact, I turned down 4 listings in July because of unrealistic prices (so yes I do let them know). I occasionally mistake what the market will pay in order to meet a sellers desired time frame and in that situation we must adjust the price or the home will not sell.
1-There are agents out there that either lack training to properly price so they may overprice without knowing it.
2-There are agents that are desperate for business and will take any listing because the owner wants a certain price to have a name on a sign (so it can rust in the yard).
3-There agents that intentionally overprice the home to "buy" the listing. They typically can't compete heads up so do it with price or commission.
4-There are agents that will take an overpriced commission and hope the seller reduces it later.
5-They know the seller and are willing to "throw it out there and see if anything bites".
6-There are probably a few other reasons but these are the ones that I think are most common.
Of course, I think all of the above are bad business practices.
When you see agents claiming that your particular market is immune to a housing downturn, that's denial.
I'm not talking about agents talking about downturn nor was anyone else. A seller reduces or does not reduce the price based on motivation, which is the topic of the thread.
Some sellers need to reduce the asking price, not because there are no visits or no offers, but because the offers are consistenly way, way below the asking price.
Someone else on my block had a similar experience with very low offers and took her home off the market.
Still another person on the block, whose asking price is simply ridiculous and will almost certainly never get an offer anywhere near it, is now renting out the property.
I think the bubble spoiled a lot of people. They began to feel entitled to get a huge amount for their houses. Now they do not want to take the loss in the face of current market conditions. But if they want to sell, they have to take the loss. Alternatively, they can wait until the market improves, but that can take a long time. And there is the risk that prices can continue falling and then stabilize at a level much lower than what they refuse to accept now.
I'm not talking about agents talking about downturn nor was anyone else. A seller reduces or does not reduce the price based on motivation, which is the topic of the thread.
The OP was an open question about why seller's are not reducing prices even though their homes sit on the market for over a year, so unfortunately for you, you don't get to control the conversation Brandon.
Agents sell themselves based on their knowledge of the market. Then they try to sell their tired sheepy mantra that the market is not going down. Say it often enough and it might just come true. That's exactly what denial is, and the sellers buy it.
Agents make themselves out to be the experts on the market, and then they claim that they have no influence on how people view the market. Sounds like someone wants to have his cake and eat it to.
The OP was an open question about why seller's are not reducing prices even though their homes sit on the market for over a year, so unfortunately for you, you don't get to control the conversation Brandon.
Agents sell themselves based on their knowledge of the market. Then they try to sell their tired sheepy mantra that the market is not going down. Say it often enough and it might just come true. That's exactly what denial is, and the sellers buy it.
Agents make themselves out to be the experts on the market, and then they claim that they have no influence on how people view the market. Sounds like someone wants to have his cake and eat it to.
Well Willy, you entitled to your opinion. You may quote denial all day long and we are all quite aware of the definition of denial. The question was "why don't sellers reduce their price?". The fact is that sellers do not reduce their price because they are not motivated to drop their price. If you would like think that sellers do not drop their price because agents are not aware of what is happening in real estate you can think that, but you are wrong. It's not about controlling the conversation but about correctly answering the question. One word for you: Motivation.
Why take on a house that you know is over priced in the first place?
I mean wouldn't you as an agent let the seller know that most likely their property will not sell because it is over priced?
I ask again because of my former neighbor. If their agent had been upfront, they probably wouldn't have gone through 4 agents and that long for their home to sell.
I agree with Brandon's reasons as to why some agents take a listing that is overpriced. It also comes down to what a seller is willing to hear. You can tell them several different ways and multiple times and show them all the supporting recent sales, but if a seller is not realistic about what their house will sell for, they don't hear what you're telling them. I don't know your neighbor, but the agents may have been up front with them, yet they were unwilling to listen to them.
I agree with Brandon's reasons as to why some agents take a listing that is overpriced. It also comes down to what a seller is willing to hear. You can tell them several different ways and multiple times and show them all the supporting recent sales, but if a seller is not realistic about what their house will sell for, they don't hear what you're telling them. I don't know your neighbor, but the agents may have been up front with them, yet they were unwilling to listen to them.
It seems pretty obvious that even if one frustrated agent after another fired the seller, there was another agent ready to step up. I seem to recall agents claiming that other agents are buying listings. How is that not causing seller's to be in denial?
It seems pretty obvious that even if one frustrated agent after another fired the seller, there was another agent ready to step up. I seem to recall agents claiming that other agents are buying listings. How is that not causing seller's to be in denial?
One word for your industry, Brandon: mirror.
I can only my own actions. If other agents are willing to take unsellable properties on that is their business. If sellers aren't motivated to reduce price, that is their business too. I don't worry much about what I can't control.
I am normally pretty good at getting price right and turning down sellers that are unrealistic but I did have one for 3 months recently that was overpriced. We weren't getting showings and it became clear we were overpriced. I withdrew the listing when the seller no longer wanted to lower the price to a marketable amount. 3 weeks later the property came back on the market with another agent and they raised the price 5%. The seller knew what she wanted, knows the market isn't supporting it, and still put it back up. I told you that to get to the point that agents and sellers can both be at fault.
I personally don't care much if other agents want to occupy themselves with unsellable listings. I prefer reasonable clients.
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