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Catherine Cataletto's Blog

By Catherine Cataletto | Agent in Freehold, NJ

TELL ME WHAT ARE SOME OF THESE AGENTS THINKING????..,

I woke up this morning.  (Thank God)....and began my daily routine..which one of my first actions are..to turn my computer on...yeah right...I got my priorities in order...in fact,,,if I could use my lap top as a pillow I would..but I'm afraid I would drool on it,,,and die from electric shock...ANYWAY..

When I pulled up the hot sheet,,,and couldn't believe what I saw.

Agent's WERE RELISTING  HOMES AFTER THEY EXPIRED..AND  RAISING THE LIST PRICE.  One of the homes that was re-listed I was on a listing appointment last week and I know they were in financial distress..

I know how a seller could think.even though their house may be worth 90,000 in this market..If I owe 100,000...then I must ask 150,000...to cover all my costs and not owe the bank anything.

BUT WHAT ABOUT THE AGENTS????

WHAT ARE THEY THINKING????

THIS IS NOT SOUR GRAPES...at all..though I would've liked to HELP  that family.  I would LIKE to think that these are new agents that just don't have a clue..

I know this isn't my problem...but it's bothering me enough that I am typing this up instead of making my coffee....THAT HAS TO TELL YOU HOW MUCH IT'S EFFECTING ME..

Comments

By Sandra Paulow,  Fri Oct 16 2009, 07:47
I think some agents and probably some sellers think that they can control the market by not conforming to what is really happening. It is very competative out there and I think some agents will take any listing at any price just to have a listing in the hope that if/when an offer comes in the seller will be reasonable. It is really hard for some people to accept that 2005 is over and that they are not going to walk away from their sale with a ton of cash in their pocket.
By Catherine Cataletto,  Fri Oct 16 2009, 08:10
So very true! No matter what type of marketing you do, how many buyers come through, in the end the home is and will always be worth what the comps show it to be.

Thanks for commenting on my blog.

Cathy
By Sheri Smith,  Fri Oct 16 2009, 08:45
I am sorry, but I feel that one good thing coming out of this market is hopefully the weeding out of people who simply either a) do not understand the process and are independently wealthy not worrying about the havoc they can create, or b). simply do not understand the process and are doing harm to the industry, their clients, and themselves and in desperation for income will subcumb to any backstreet negotiation that will never come to fruition.
The key to this market is communication and understanding what is really going on....REAL ESTATE MARKET!
Why when we mention STOCK MARKET does everyone automatically assume their are risks involved yet real estate is never thought of in the same manner...we have been through this before...and we will come out of it...but allowing agents to simply "create" mythological scenarios just to get a listing is simply wrong! I agree with you Cathy about not being able to shower over this one!
By JOSEPH RUNFOLA JR, BROKER, GRI,  Fri Oct 16 2009, 12:41
If a home is overpriced not only will the potential buyers ignore the listing, but other agents will also avoid the home. Buyers are generally well aware of what is on the market and are comparison shopping. They will compare you home with similar homes and will know that it is overprice. Agents will avoid wasting their time and their clients time with overpriced listings.
By Robert Fine,  Fri Oct 16 2009, 18:50
I've noticed that many properties seem to be overpriced and the listing agents/brokers are mainly not new, but just the opposite, they are experienced top producers. Amazingly after a year (or a week) the listing agent/broker is also on the other side of the transaction and the property closes at a 30% to 40% discount from the original price.
By Irena Popilevsky,  Sat Oct 17 2009, 15:23
I don't understand what is going on with our industry. Have some of us forgotten who we are? We are professionals, licensed Real estate people and we should be treating our real estate business as professionals. One of duties is to educate our clients and customers. Taking an overpriced lising is hurting the seller. Having the seller believe they can sell at an unrealistic price is NOT GOOD. Everyone PLEASE be honest and do your job the right way.
By JOSEPH RUNFOLA JR, BROKER, GRI,  Sat Oct 17 2009, 15:35
What Happens When You Over-Price Real Estate? Short answer: It almost certainly won't sell!
The first thing that happens is that when it goes onto the Multiple Listing Service, all the agents who see it know that it's overpriced. Even on the public part of MLS, the members of the public who see it wonder, "Are the walls gold-plated or something?"
By Brian Brosen,  Sat Oct 17 2009, 16:43
I 100% understand where you are coming from - in our neck of the woods, The Capital District of New York, many agents out there will "buy" a listing by just throwing numbers out to get the home listed. Lots of luck, they will sit and sit on them, and finally, we get called in with 2 or 3 weeks before the bank is to take it all away and i am often left to clean up the mess - responsible agents/brokers should know better, and i think we have a responsibility to keep saying these things, and being part of the solution to the messes out on main street, instead of part of the problem.
By JOSEPH RUNFOLA JR, BROKER, GRI,  Sat Oct 17 2009, 17:18
The first thing you want when you put a property on the market is for everybody who is looking for a property of that nature to come and see it. Overpricing it is the best way I know of to cut down drastically on the level of interest. If they don't come see it, people are not going to make offers. Most particularly, they will not make good offers if they don't come see it. If they do come see it, they are going to be expecting something better, and disappointed people don't make good offers, if they make one at all. That high asking price communicates that this property has something above and beyond the what it really does. If it doesn't, they're going to wonder what in the heck you and your agent were thinking. They're going to go away shaking their heads at the waste of their time. If they make an offer, it will be a desperation check.
By Catherine Cataletto,  Sat Oct 17 2009, 19:40
Just frustrating when you're sitting across the table, doing a proper CMA, and you lose the listing to agent that promises them unrealistic price. After beating those poor sellers over the head for price reductions they either expire or sell for even less then what they would;ve had they listed at the proper price.

Thanks all for your feedback...
By JOSEPH RUNFOLA JR, BROKER, GRI,  Sun Oct 18 2009, 09:22
The agents in the area are going to avoid the property, also. They know what similar properties are going for. Why should they try to sell yours for $10,000, $25,000, $50,000 above market comparables? Yes, they'll make a little more if they do sell it, but it's much easier to sell a property that is a real bargain. I'd rather sell sell a real bargain at $400,000 than an over-priced turkey for $450,000. The difference in compensation isn't that much, and I'll work much harder, and I'll lose most prospects by trying. I try to sell them an over-priced turkey looking for the sucker of the year, and a large proportion of clients won't want to work with me any more. I can make the commission off of a $400,000 sale, or I can lose the client by trying for $450,000. If they can afford $450,000, I can find them a better property at the same price. Happy clients bring me more clients for free, and as any real estate agent or loan officer can tell you, getting potential clients in the door is the hardest and most expensive part of the business. I assure you that every real estate agent who has been in the business more than about three hours knows this. If you were priced right, I might have shown that client your property, but you weren't, and so I didn't. When you over-priced the property, you either placed yourself beyond their budget, or where I can find something better for the same price.
By Don Tepper,  Sun Oct 18 2009, 09:41
A lot of good answers/comments already. Let me offer another observation, too. Recently, I was selling a manufactured home--a 2 bed/1 bath, nice condition--in a park with an $842 per month lot fee. The price was $16,000. Nearby 2 bed/1 bath condos (without a driveway for 2 cars, without being in a gated community, without a swimming pool) are going for $150,000. That condo fee might run $300, and there'd be another $175 a month for property taxes, a few hundred dollars a month for pool membership, and so on. So, while not exactly a wash, the monthly expenses were relatively close. But look at the difference in price.

Priced at $16,000, the most common question was: "What's wrong with it?" When I did a couple of blind ads on Craigslist at $150,000, the most common question was: "When can I see it?"

That may be an extreme example, but remember: There are price points. And you need to price the property at an amount that the prospective buyers will see it. If you're priced too low, buyers won't see you, or they'll be suspicious. I'm not arguing that a property should be overpriced. But let's say $100,000 is a price point. Price the property at $99,500 and you'll likely be getting potential buyers who can afford between $85,000 and $100,000, so you're at the top of the market. Price it at $104,900, and you've got a whole other set of prospects willing to spend, let's say, between $100,000 and $125,000. Now you're one of the least expensive out there.

We're taught that a key element to marketing is pricing it right. That's often the case. But not always.

Don Tepper
http://www.Solutions3DHome.com
http://www.WeSellVirginiaHouses.com
By Florida Citizen,  Sun Oct 18 2009, 10:09
If I am reading the comments of real estate professionals posted here, you would not and will not participate in foreclosure defense measures that can create a crucial 'next step' for the homeowner.

As I read more closely, (between the lines) you are saying if there is no promise of a commission, you are not interested. These are tough times, and distressed homeowners can benefit from the helping hand of agents with a heart. Oh, sorry, I'm talking to real estate professionals here..."WHAT WAS I THINKING!"
Levi
By Catherine Cataletto,  Sun Oct 18 2009, 18:34
Dear Florida,

If you read my blog it was defending the seller, trying to protect them....I've always prided myself on putting my clients best interest before mine and I will always do that.
So if you thought I was trying to do anything else then help sellers to achieve their goal, then I'm sorry that you misread it.
However, thank you for your opinion....that's what this site it about.

Cathy Cataletto

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