It would be easy to say; "Hey. look- the neighbors house is not selling either" ~ That is not what they want to hear. The economy is going through a time of adjustment and people are gun shy to invest in property. Things are getting better each and everty day.

Michael, it was late when I posted and at that time of the night the spelling goes out the window. This was never a short sale to begin with. They have over 200k in equity. What changed was that cancer has stuck a family member that can no longer work. It was going from bad to worse so they came to their sences and sold with equity in place.

Celina,
Before you go back to college get spell check! Good job in getting that one closed. 500 credit score won't even get you a car!! But for the time spent on "Short-Sales" I will prospect and get buyers/sellers who are NOT dependent upon a third party for their lives to go on!
Lastly, does anyone read the dates when these posts first go on trulia? This one was back in MARCH!!
So Maria--what the heck happened to the folks with the "totally unreasonable expectations"!!!??

The House has sold. 550k closing in 2 weeks. found them another home with owner financing @ 5.5% unheard of in this market with 500 credit score. I think I'm gonna go back to school and finish my bachlors and do my theses on this past year. LOL all is turning out well for them.

They won't come to the reaqlty of the whole situation. In my office I've become the expert on short sales. I've even negotiated with 2 banks at the same time because the seller didn't want to retain an attorney. They recently had an offer for 550,000 and downright refused it. Even at 550,000 they have over 200,000 in equity. I explained the entire foreclosure process and still they will not make a move. The bank has already been to the house to take pictures. I learned the process first hand by negotiating my own last year. Came out of it OK and have been current for a while. I hope they do well with their open listing.

In Michigan there are services that handle the communication to the bank for a short sale. It can be really tough to deal with these banks. They know the process and how to get to the decision makers. Here they charge a flat 1500 paid at closing, so with a short sale comes from bank. You may want to see if your area offers that. I have found it to be very beneficial!

A quick story about sellers that don't listen (unreasonable sellers):

I had an overpriced listing of my friends@ $125,000 2 years ago. I actually got an offer for $115,000 (still more than the house was worth). I urged him to take the offer because he would NOT see another offer at this price PERIOD! He said, NO....I need to to $40,000 out of this home and that offer is $5000 short. So, he turned it down.

Fast Forward to now: I followed up on the history of this home. He ended up throwing me under the bus for another Realtor who was unable to sell the home. Presently, the home is in foreclosure selling for $77,000.

I now use all of this information as part of my listing presentation!

For some reason, we as Realtors are frequently dismissed as experts in the field that we have chosen as our careers. I’ll bet you anything that the average patient in need of brain surgery isn’t telling his surgeon how to conduct the operation!!!! :)

If they are behind on the mortgage it sounds like you need to start discussing a short sale. It is WAY better for the seller AND the lender to do a short sale than go into foreclosure. If you can get the bank involved ahead of time the approval process doesn't take very long when you get a contract.

Leasing is not an option. They are 3 months behind on mortgage . She called yesterday and has decided to do an open listing. I'm gonna let them go and keep good family relations.

I would like to know why the thumbs down. If you have done your job in giving a fair market value through comps, other agent feedback, etc. What good are you doing the seller? If they need to sell for a certain amount and you believe they can't, what are your options? Disappoint them with false promises? The market has dropped and the solds are the facts. Its not about how ,many listings we have but helping the seller. If you can't sell their home at what they expect or need, why not refuse the listing? How about leasing until the market improves if they have that choice? In the big picture, I would expect they would respect you for you honesty in lieu of listing it and going back numerous times to tell them after the fact the price is too high! Honesty is always the best policy.
I had a seller last year come back to me after listing with another agent making promises of a higher price and not selling it. They hire us for professionalism not our sign in the yard.

Have a brokers tour with a rating sheet. Have them rate the list price and what it should be, the location, the decor, etc....... Ask them to be brutally honest. Then sit down with your sellers and show them the scores. Don't forget to get the business cards from the different agents. Good luck.

What do you do in a situation of the clients being close family. I have followed all the rules of showing the house, open houses, ads, etc. House is not mooving and all of a sudden they have become realtors telling me how to do my job. What to do ? Help!

I sold 10 million in listing inventory this year. The hardest thing for me to do was to not take a listing. I learned the hard way. All you get is a disappointed seller, frustrated agent and loss of Marketing money. They hire you to give them a fair market value. Sometimes it feels good to walk away!

Hi Maria,
You have received some good advice from the other folks that responded. Have you actually taken them out in your car to view some of the competition, homes that are nicer that are priced less, homes at their price range that are a much better value? Seeing stats on paper is one thing but actually seeing it in person is another. I will take sellers out to look at homes before pricing and putting theirs on the market. It has always been our practice to take buyers out, we now owe it to our sellers to take them out so they can price their home right. It works. If these folks still don't want to price their home realistically, I would either tell them that maybe you are not the agent to market their home if you don't believe in the price or tel them you need a retainer to pay for all the marketing which you can credit back to them once the home sells. Explain you and every other realtor will go out of business if you keep investing money on listings that will not sell.

Have them read this thread and Chris Freemans thread about equally unrealistic buyers.

Hi Maria!

Be blunt, tell them the truth. Be confident when you show them the facts and data. They will appreciate it. If they still don't get it, then it may be time explore the future of the relationship. Time is valuable for both sides. It really isn't in the best interest of the seller to have their unmarketable home languish on the market.

Good luck!

Rudy
Social Media Guru at Trulia

Maria, It's an election year, perhaps a program will be available to clear the glut of foreclosures on the market so their home will be worth more. Keep thinking positively.

Keep up the good work and good luck, hope you sell it!

Thanks everyone for all the advice and feedback. I didn't explain fully the situation because I was frustrated and just really wanted some new perspective (if there is such a thing) on the same old same old, question we all have from time to time, that's it! Moving on is simply NOT an option for many reasons but I have rfigured out a way to meet ithem n the middle for now and work out a compromise. It's very nice to know that my fellow REALTORS care and want to offer up real sound advice! Thanks Again!

One thing you have to establish with them is the urgency they have for selling their house. I'm sure you have shown them the other properties in the area that have come off the market that didn't sell and compared the prices to the homes that did sell. Also try getting them to think like a buyer and show them the facts. If they are being unreasonable and won't listen at all... don't be afraid to walk away. There is nothing wrong with using the "I'm sorry close". I agree with Maria, go on to the next...... pick yourself up, dust yourself off and find another client!

Good Luck
I'm licensed in Michigan and Florida

Maria,
If we are discussing sellers that are current clients, a simple 'time of sale' appraisal would go miles to proving the market's point of your client's value proposition. I would also suggest, but it's likely redundant, sharing any feedback you are receiving from prospective buyers.

If you are interviewing prospective selling clients, then yes, the truth, with an analogy or two will go a long way. My favorite analogy so far, is to liken the current market in Washtenaw County to playing soccer on the top of a hill. When the ball is kicked out of bounds and begins to roll down the hill, which is the easier way to catch that ball: Running up behind it or getting in front of the ball and letting it whack me in the shins?

With the market declining, it is best to stay in front of it, as opposed to chasing it into the river.

Maria, Ask them this, "When they're reading the newspaper on Sundays what makes them get off the couch to go to a store? A sale on something they want, right? But what NUMBER makes them get off the couch and drive over to the store? 5% off, 10% off? 20% OFF? Tell them we've got two potential "Shoppers" out there who are awaiting a reason to GET OFF THE COUCH! One is the potential buyer. Your house today is one of thousands on the market. It had better be at a "get off the couch" sales price to get noticed. Also, the other shopper, the Realtor/Licensee, needs to get off his chair and get excited about "Selling your product!!". So it may not only be PRICE but also COOPERATING BROKERAGE FEE!!
If that doesn't work, you pull out the solds and show them the actives. In our area we have 2400 "Active Listings" and only sold 200 last month! That's 8% of all "Actives" are sold! Ask them this? "Do you wish to be priced with the ones which are selling or with the 92% who are NOT selling?"
Finally, if they still don't get it--FIRE THEM!! Like Melinda said, "Nex" is a good philosophy. You show up, tell them the truth and don't be attachd to the outcome! There is power in numbers. If this is your ONLY listing and they are also thinking of buying ANOTHER property then you may be holding on too tight. Think about it!

Hi Maria. Our market in Florida has been at a standstill since late 2005. Our listings here have been reduced quite a bit since then. During that time I have had a few difficult sellers who believed in their own ideas rather than their realor's sound advice. Yes, there is such a thing as "next!". It is a difficult feeling to absorb when you walk away from a listing that you have put all your time and money into, but it is sometimes best to cut your losses now rather than later. Good luck!

Maria, there is this little word I like to use "NEXT!" In a very nice professional way you should tell them to get reasonable or they need to find another agent. You are in the business to sell a house, not in the business to pay advertising for something you know is never going to sell. Might as well burn it then spend it on useless advertising.

I tell sellers up front that pricing is 95% of real estate today. With so many internet buyers out there, someone can be sitting in their pajamas on a Saturday Morning, drinking their coffee and know if there house is priced right or not with in just an hour or two of searching on the internet. The only person they will be fooling is themselves if they over price it. Even if they did get an offer, they aren't going to get it past an appraiser for a mortgage buyer. Not to mention cash buyers are very saavy.

If they won't listen, then I would get rid of them. They have not had enough pain yet to listen. Maybe they will take you more seriously when they realize you are ready to walk. If not let them go and put your energy into a property that will actually get you a commission. The market is too busy to be playing cat and mouse games.

I hope this information helps! Best Wishes!

Maria,

A wise trainer in my company has a mantra. "Don't tell them, Show them." Sellers are obviously sometimes irrational about their expectations for the sale process. All you can do is continue to show them comps area statistics etc. until they come around to understanding that you understand the situation better than they do. If they don't you will need to reach a point of deciding if it is worth your time and energy to continue to market the home. If it will not sell in your opinion in the current condition/ price etc. you may want to have a frank conversation with the seller. Let them know that you believe their house will not sell unless they make some changes and maybe let them know that it may not be in your best interest to continue to be their agent if they can't step up to the plate. Be tactful, but honest with them. It is the only way to go.

Hi Maria,

You bring the facts to the table. The comps, the newspaper articles, and the foreclosures that are near their home. If the facts do not sway them, then you do what J.D. said. You let them know that their satisfaction is important to you, and since you are in disagreement over the situation that you have to "fire yourself" and move on.

Do an updated market analysis for them, be sure to include all categories. Show them the price reductions and the days on the market of each home listed or sold. If that doesn't work and you're positive it is way overpriced, you can always tell them you can't afford to advertise a home that is so high priced that it won't get any activity. You may lose the listing, but you'll be able to sleep well

I tell them the TRUTH. What else should I tell them?

Hi Maria,

When I run into that problem I politely explain that I base my business on having customers that are 100% satisffied with my service and professionalism That includes the price and other terms. Since we are not able to agree on the price or the terms I suggest they interview other agents and make my exit. Unreasonable sellers cost you money - even if you plan on not spending one red cent to market the home - because they cost you the listing across the street when they see you failed to sell this one - JD

Maria:
SHow them the most recent comps and then ask them to put their buyers hat on and ask "If you were a buyer looking at these homes for sale would you by this home?' Other questions to ask "What is it about your home that defies our current market?'
Also look at the market trends, use stats to how long will it take for the market to catch up to the price they are looking for and if they can afford to keep the home that long. Add up the carrying costs to show them the total cost to them as to when the market catches up to their price. When you bring to dollars attitudes change quickly.
It is obvious they are not in a hurry and therefore, if nothing you say or do helps, release them.
Good luck!!!

Maria,

It's like the old joke; "How do you get a Realtor(R) off your porch?"..."Pay for the Pizza"

I have to agree with Missy. With the glut of homes on the market, buyers learn very quickly which homes are over priced. You work hard to build a reputation as a real estate professional. How would you rather be known, as someone listing homes or someone selling homes?

Being honest with your customers is always the best thing to do.

You answered your own question, "totally unrealistic expectations".

Maria, I have many of my houses, priced below Market value and they aren't selling. It's not you it's the market if it is priced right. Price is critical. I have refused 8 listings this year, because of unrealistic expectations from sellers. That's fine. On 4 I was 2nd Realtor in and they sold.

Hi Maria!
Call me, I am at my desk.734/669-4544.