Here's the thing - Homeowners have a Constitutional Right to Over Value Their Home. Real estate brokers have a right to contract with Sellers Who Insist On Exerting This Right.
Listing Brokers owe their clients Loyalty and Honesty. It is a Violation of Realtor(r) Ethics (this is true) to mislead Sellers as to the value of their home. So "buying" listings is an Ethics Violation.
That said - if everybody else thinks the house is worth $400,000 and the Seller shops for a Broker that will take the Listing at $600,000 - how is this our business?
Now, being as We are all Ethical Brokers, we're going to tell our prospective "Seller" what we think is the truth, right? "Mr Murphy, yeah, you know, houses like yours - look at the comps, three-seventy, four-twenty. At six hundred, people are getting circular driveways with fountains, moats with fully-automated drawbridges, they're not next to gas stations, they have roofs and siding that's more substantial than blue tarps . . . "
So there's really nothing to "overcome." Sometimes, the Seller is delusional. Sometimes, they really don't want to list with you! And, sometimes, you're willing to give it go. So long as you've been straight with the Seller, frankly, I don't see the problem.
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
William Raveis Legends Realty Group
Offer to split an appraisal is one viable option.
Unfortunately, in this scenario we often have to reposition to below market value for buyers to take notice, but this is the risk the sellers wanted to take. We do get results but in the end they have accumulated carrying costs, and usually sell for less than the original expected sales range. Best
I have started a recent program where I don't give clients a value/listing price for their home, but rather give them the comps and allow them to add/subtract all the upgrades and come to their value. This way, at least they are educated. If they continue to live in the dreamland where their home is valued dramatically over the curernt market, that clear indicates to me that I don't want to work with this seller. I took this idea from a friend of mine, and I have to say, this has been amazing for me and I think it has prevented me from dealing with at least 2 sellers that would have been nightmares for me.
I'm working with a few agents who are feeling a bit frustrated by sellers who have overvalued their homes. My agents feel like they're losing the listing when in actuality they may be losing the headache. They want to sell these homes and they want to be the first agent listing the property in doing so. They're looking for solutions. And I love talking to and working with people who aren't afraid of curveballs. I'd rather adjust my swing and knock the ball out of the park than wait for the next pitch.
I'm just as sure that some of these sellers and their properties can be reasoned with and sold as I am that some should of them be avoided. This has been happening (as Mack cleverly put it) since the cave man days. So it isn't new and it isn't uncommon. It comes up all the time and it makes all the sense in the world (to me anyway) for an agent to figure out how to convert these deals. I don't expect anyone converts all of them, but I do see some agents fare better than others with this kind of stuff.
I was looking for success stories. A default answer of "Walk away" assumes no risk and (hence) offers no reward.
Thanks to everyone who offered their solutions!
it is imperative to understand the motivation to sell the home. As some marketers advise, stay focused on 5, 6 and 7.
Get an agreement from the seller that if the overpriced home receives the expected response of ABSOLUTE SILENCE, they will follow your counsel. So,if the home overpriced by 30% receives absolute silence and the homeowwr does not want to reduce the price to 'get on with their life with new wife in Denver' there just may be something wrong with thepicture.
Often, sharing the data for the competing homes, ask the seller, "Which of these homes would you buy?"
Sometimes the need to 'get on with your life' requires a polite walk away.
Stick with them through the process, and keep the occasional "comps" coming to them after that. In time, it will generally help.
However, it does not always work out the way it's supposed to. Recently, I told a potential client that their house was a between 395-405K in it's current state. Another Realtor told them it was worth 450K. Wrong... At the 450K price under the other Realtor, at 60 days on market, they've had 0 calls and 0 bites. Now they are calling me saying that they will lower the price to my suggested recommendation. Problem is, the other listing agent owns them for 4 more months.