The first thing we do before looking at all the "pretty" stuff is to see who the Listing Agent is. Good reputation for being fair - we stay. Not so good - we walk.
Agents forget that just because you have a listing doesn't mean buyer's agents will bring you a buyer. It's not hard to walk away if you have the knowledge and data to show why it's not in the buyer(s) best interest.
Many Seller's, especially "flippers", are out for the "quick buck" in our area. Would not put buyer's into a situation that was not in their best interest. Comp's are comp's no matter where you are.
To save the integrity of our industry, more agents need to learn to "walk" from this practice. Seller's will soon get the message and hopefully better guidance from their listing agent!
I just dealt with this issue and almost lost a listing because another agent was "preying" on my seller's unrealistic expectations. I gave him a much lower comp on his house than the agent who was trying to buy the listing but after discussing it with the seller, he understood my comps were more in line with reality. I did get the listing, and we ended up listing for a bit higher than what I was comfortable with, but I voiced that concern and told him he was taking a risk by listing at the higher price. With all the concerns out on the table it was his decision to list at a higher price, so we're giving it a try against my better judgment which he is fully aware of. This listing goes live tomorrow.
The Cascade Team
Simply Outrageous Service! Not Outrageous Commissions!
As professionals and people, we're not trying to redefine civililization. We're just trying to make a living and leave our little place in the world better than we found it.
"Walk away" and "Buying a Listing" are not terms used to belittle a seller. It is vernacular used to describe a situation where an agent takes a listing at an unrealistic price. I don't believe there was any intent to belittle the sellers in any of the previous answers.
If you took a job where you would only get paid by your employer if you hit UNREALISTIC goals - sometimes impossible goals - would you take the job?
I think this was a great questions - posed to other agents - and all of the answers so far were "in-line".
MD/VA and DC
Language such as 'buying a listing' and 'walk away' is inappropriate, Such reference is too often used by those who were not at the table when an agent and the seller agreed on a match between service and need. The world of the nonparticipating agent can make sense only if the 'other' can be protrayed as deficient. If what I read of all the like minded real estate people, this deficient agent will be out of business before long. Right? So, what's the problem? As I see it, you either take up the call of defending the seller who rejected your service or you feel, deep down inside, you may be wrong. In either case, it's a wrongly inspired motivation.
Unless you were sitting at the table with the home owner and listing agent, you don't know what the agreement is. Use of cliche' such as 'buying a listing' or 'walk away' don't serve the reader well when you are not aware of all the agreement conditions of the listing contract.
I would much prefer to wish the seller the best of luck, and ask them to please remember me when and if the listing does not sell in a realistic time frame. I make them promise to call me if they finally come to the realization that I was correct in my assessment of value.
At least 1 out of 3 call me back - and I end up with the listing at a realistic price. Most importantly - I did not waste my time on a hopeless cause, and I could focus on my other listings and working on my marketing.
MD/VA and DC
This has always been an area where we have very strong feelings. We believe that it is our duty as professionals to always tell the sellers the truth no matter how hard the conversation is. This a great time to really dial down to the clients true motivation, and in business where margins are razor thin we should not take listings with unrealistic expectations.
Three years ago we interviewed with a young couple that had purchased a home on a busy road. They put a lot of money into the property and had unrealistic expectations for the ROI. We told them the truth and they were so mad they showed us the door and told us we did not know what we were doing. This was hard to take as we were in the middle of a very slow stretch. However, we made a business decision to stick to our principles. The home never sold and three years later they called us back and told us we were the only Realtors that told them the truth. We recently sold that home in 35 days for 98.5% of the original asking and sold them their dream home. All the best
I do agree with JR's first response and I too have walked away from my fair share of listings, but again - it's all about their motivation for me. This is not the market to just throw it out there to see if it sells.