Foreclosure in New York>Question Details

Darlene Your…, Real Estate Pro in 11751

What will it take for home owners to realize its a buyers market and stop with the over priced homes for sale?

Asked by Darlene Your Realtor, 11751 Wed Sep 19, 2007

There a tons of listings and FISBOSon the market for sale that are not selling. Most buyers are not purchasing these over priced listings. So, most of them become expired because they were never priced right from the start. And along with the subprime lending mess it only makes it harder to get these listings moved off the market as a sale and not end up in expired land. Well thats my question and opinion!!

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Darlene,
When we as Realtors can present to Sellers the reason why they should list at a price that will sell and not guarantee a listing by giving them a fantasy land listing price. Then we will as an industry regain credibility. It is better to have a tough 60 min conversation at the listing presentation than a 60 min conversation every week for 3 months, then blame the market for not selling the home.
We are swamped with business because we have a no excuse policy and if you do not want to list at top 1/3 price and you are not top 1/3 condition We can not take the listing.
Web Reference: http://www.teamrenton.com
4 votes Thank Flag Link Wed Sep 19, 2007
Re: Ruth below with her "The listing doesn't mention anything about the $300,000 worth of improvement such as new: windows, plumbing, electric, master suite, 2nd fl laundry, "

Apparently she had bought the palce and 6 months later put it on the market. (See her conversation with the nobody-there open house sitter.

I will agree the realtors were gutless by not looking her dead in there eye and saying:

The granite countertops do not add anything to the price.
Nor do the windows. Nor do the electrical repairs. Nor do the plumbing repairs. Those are maintence, Forget getting what you spent back.

Unless that master suite and laundry were new sq footage, they don't add any amount to the value that would even come close to what you spent.

The house will appraise based on the sq footage, the lot size and the size of the garage. The rest is cosmetic and decorating and no bank will appraise if for more just because you changed the countertops.

They didn't tell her to get a grip on reality that the bottom of the jumbo mortgage fell through the floor in August. The difference in rates before August and after August basically meant a 10% drop in the sales prices.

They didn't tell her to face the fact that the market for flippers is over. the market is falling. There are no more weird mortgages out there for wanna-be wanna-get-more-than-they-can-afford buyers.

They didn't tell her that her stainless steel appliances didn't add squat to the value - some people hate them and would yank them in a NY minute.

Now she has her own webage and it is sitting.

Assuming that she bought about 1 year ago (the reference to 180 days), she will be lucky to break even on the purchase price - and forget getting baack her routine maintenance and decorating costs.
7 votes Thank Flag Link Thu Nov 22, 2007
Real Estate is local. In (New York > New York County > New York > Market Conditions > Question)
It is not a buyers market. Fudamentals - Supply and demand determines market conditions. Currently in New York County (Manhattan) inventory is low (supply) and demand is high (many buyers)
However over priced listings don't sell in any market. In a sellers market if there are no offers within a couple of weeks the price needs to be reduced. At the right price there is usually multiple bids. I have seen multiple bids after a price reduction when there was little activity at the higher price. Often the lower price with multiple bids will end up getting the seller their original ("overpriced price") or more. Sale price is determined by what a buyer is willing to pay at any given time. it is not determined by sellers or REALTORS® or neighbors previous sales. Comps are only a tool the market and variables determines the sale price.
7 votes Thank Flag Link Thu Nov 22, 2007
Mitchell Hall, Real Estate Pro in New York, NY
MVP'08
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Can I trash my former gutless agents? I interviewed 3 groups of agents in March before the rehab was finished. One GOOD agent did two CMAs, one for "if it were last year" that had a range from $899k-$975k and another "the truth today" with a range from $875k-$899k. I didn't go with her because she didn't have high-end sales experience. Another GOOD agent said $875k-$899k but even though he lives in Oak Park, he works in Chicago. The agents I chose, drove me around to the competition and asked me what I thought we should price it at. The houses were: $969k beautiful but no a/c, no garage or updated mechanicals; $829k smaller, updated 15 years ago; $775k only 1.1 bath compared to my 3.1 brand new baths and plumbing; $840k in need of $300k worth of rehabbing. None of the houses were the same size and condition as mine. Five $1+mil. homes similar to mine and 3 listed between $875k-$950k
went under contract that week. So we decided $925k and they go through their marketing plan, statistics and CMA. Four hours later as I'm leaving, they tell me I can't take what they presented to me home until after I have signed the listing agreement.

The house is almost finished in May and I sign the listing agreement two weeks in advance. We have a brokers' tour and everyone says the same three things: "Beautiful", "I don't have anyone right now" and "Good Luck!" I immediately drop the price to $899k. I leave the country for 2 weeks and no action while I was gone. They tell me the home is over priced. I ask about marketing and for a copy of the listing, contract and presentation that they still haven't given to me. The listing doesn't mention anything about the $300,000 worth of improvement such as new: windows, plumbing, electric, master suite, 2nd fl laundry, etc. Aside from SS appl and granite counters, it looks like the same listing as a year ago. We fix the marketing and give it two weeks. Still nothing. I then look through the CMA and see their original recommendation was $850k. I'm upset but I lower the price to $850k. Too late, the damage was already done. I go to my own open house as a consumer and none of the marketing material is there. I ask, "How long has it been on the market?" The guest agent says, "A looong time." She then flips through her paper work and says 180 days last year priced at $525k. "What?!" "Oh wait, then it sold. It didn't look like this before, they painted it all the fashionable neutral colors." I fired them.

I then dropped the price to $799k (our breakeven after negotiations and commission) through a flat rate broker. We had 5 interested groups but no written offers. We just dropped the price to $700k. There are too many gutless agents telling sellers what they want to hear. I said from the beginning, I want to price it to sell.

Ruth
Web Reference: http://www.oak-park-il.com
5 votes Thank Flag Link Wed Sep 19, 2007
Ruthless, Other/Just Looking in 60558
MVP'08
In our area, Sonoma County, California (The Wine Country) over priced listings are there for a number of reasons. I don't mind one being critical but some critical thinking needs to accompany this observation. In our area many still think if they "need" a certain amount the ATM which WAS their home will deliver. Those folks who are a price reduction away from a "short-sale" are sticking to their prices. Investor's facing foreclosure are trying one last shot before handing over the keys. Weak Realtor/Agents who are under the gun by management to produce take this over priced listings "hoping, praying and putting it in MLS" hoping it will sell. We call them three agent listings. The third agent who gets the listing will finally have it priced right.
5 votes Thank Flag Link Wed Sep 19, 2007
JR,

Nobody is badmouthing anyone, it's a discussion about business that I'm heavily involved in, and have been for 29 years ... I'm sorry you always feel left out, including by your own peers.

But thanks for stopping by.


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4 votes Thank Flag Link Thu Apr 3, 2008
I was in an Ed Hatch Seminar at the NAR convention. He summed seller motivation up quite simply: Do you want to sell or do you want to stay?
It seems that a lot of sellers are in the stay mode, even those who have already relocated leaving their homes vacant (and even harder to sell).
The law of supply and demand will eventually kick in with some of these hold-outs, or they will make the choice to stay.
4 votes Thank Flag Link Thu Nov 22, 2007
Isnt it possible that many people have their homes listed at an unrealistic price because they have refinanced them to the point of having little or no equity left?

I seem to be running into this more and more as a buyer, at least in the bay area. Some homes I see have little equity built due to I/O mortgages or refinancing on appraised value from a few years ago (and spending all the money where they now owe considerably more than what they paid for the house), and now the sellers are trying to pass their misfortune/misjudgement onto the buyers.
4 votes Thank Flag Link Mon Nov 19, 2007
We do the Analysis of the home, we show it to the sellers, we show the charts and tell them that if they don't price it right, it will not sell. Then, what do they do? They overprice... don't like you for telling them the truth, insult you, and then give it to an agent who will list anything for any amount. Then, guess what ... it doesn't sell, hasn't sold, won't ever sell at the price they are asking.
4 votes Thank Flag Link Sun Oct 7, 2007
I totally agree with Paul. It is our job as Real Esate Professionals to help Sellers price their homes to sell. Not at the price they WANT or the price their neighbor got last year...but by using recent comparable SOLDS.

I listed 4 homes within the last 14 days where I told the Sellers that I would NOT list the house unless it was listed at a price that it would sell at - Not a price made up by the sellers because it's a buyer's market and we have to assume that every buyer is going to offer 10% less - but a price they expected to get after negotiation.

One home sold the first day on the market for full price. The second home sold in the second day with a home sale contingency)for more than asking price - then we sold it again with no contingency - same price - 6 days later. The third home had 3 offers within 2 weeks and was negotiated up to full price, and the fourth actually sold at an open house I held the first weekend on the market.

Overpriced listings are bad for the sellers - check out the David Knox video (Pricing Your Home To Sell) I tell them that it is my marketing dollars that are going to waste on a home that is going to sit and I don't believe in wasting money for a listing.
http://www.davidknox.com/store/products/28

I actually was pretty tough with my sellers and they liked me more for it.
4 votes Thank Flag Link Wed Sep 19, 2007
Unrealistic is expecting Realtor's to give you free advice about how not to pay them.

Unrealistic is expecting a Realtor to show you 30 houses and then asking them to cut their salary.

Unrealistic is having a Realtor market a home for months and then you as a buyer come along and expect them to take a pay cut.
3 votes Thank Flag Link Mon Jun 30, 2008
If I were asked to reduce the asking price the first person to get a paycut would be my realtor
~~~~~~~~~~
Is your asking price based on reality or what you "have to get", "need" or "want"? Unfortunately, if many sellers DON'T reduce their asking prices, the one who is going to get a pay cut is going to be them--the sellers. Because they either aren't going to sell at all, or sell even later at an even lower price. But this is what we deal with every day: totally unrealistic sellers.
3 votes Thank Flag Link Sat Jun 28, 2008
**..Sellers MUST be willing to negotiate when buyers come along..**


Sellers are willing to negotiate .. but it will also take great patience and the proper education from the "real deal" realtors out there that sold those very same homes ...

Keep in mind, you're the very same folks that stood with your hands on your hips 4 years ago and said:

"I know values went up 25%, but if you don't make a decision today you'll miss the next 25%.. " .... well guess what.? .. buyers were ill-advised ...

Agents need to work harder than anytime in history to educate their sellers if they want to survive in their own industry ... the days of showing 5 houses on Sunday and a contract by Wednesday is nothing more than a fleeting memory ...

The easy part is done, you got the buyers into this home ... the hard part now, is the ability to get the sellers "out" of it ..

The question is .. how many agent/realtors are up to the task.?



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3 votes Thank Flag Link Thu Apr 3, 2008
The Poster Below, who has chosen the name "Retired Real Estate Lawyer Being Highly Entertained By Stupidty" has come to enlighten us. First, his premise that condition has no bearing on price is what is stupid. Second, his post was rude. I am not entertained.
3 votes Thank Flag Link Fri Nov 23, 2007
That's a great question.

Time on the market. For serious sellers, too many days on the market with no offers, or offers consistently below asking, should be a sign that they may have overpriced their home. The problem is sellers are emotionally attached to their homes and fail to understand that once its put on the market it is a PRODUCT. It must appeal to buyers in order to sell.

If a seller can wait it out, then they will not reduce and hold out hope (maybe false) that somehow, someway , a buyer will just fall in love with the house and pay close to asking. That seems to be the reality as I see it.
3 votes Thank Flag Link Thu Oct 11, 2007
I love what Ruth wrote! I was once a gutless Broker, but after a year of having listing sit and not sell and the high cost of marketing expenses out the door, I wised up very quickly. Plus I hate having the conversation every week about the little to no activity with the seller. We owe it to our clients to be honest and up front with them. Its better to do it on the front end then the back end. Also I remember how negaitive I was all the time, it was just an energy drainer.

Good question, Darlene!
3 votes Thank Flag Link Sun Oct 7, 2007
It will take Realtors who are educated in their trade to enlighten the sellers. I turn down overpriced listings. Tell them, forget it, I am not wasting either of our time listing this house and over pricing it.

The bad part is the "grubby" realtor that does take the listing 100k over asking price.. makes us all look bad. It is not just the homeowners.. it is awful real estate agents that encourage and accept these OPT's (over priced turkeys) that create the secondary problem.
Web Reference: http://www.johnsacktig.com
3 votes Thank Flag Link Sun Oct 7, 2007
In my experience recently many sellers want to over price because they owe more then what the property is worth due to a refinance or market depreciation. In one instance after emphasizing over and over again the need to reduce the price on one of my listings and the seller refusing; the seller lost his home to foreclosure.

Currently I have close friends whom insist to ask me weekly how much is their home now. I won’t list their home and they are quite perplexed by that. Similarly a family relative has the same problem and I will not list their home either.

I think in overall we are aiding the real estate crisis. Many agents are just eager to list with the ulterior motive to drop the price later when the listing is secure. I rather work with three reasonably priced homes then with ten over priced listings.
Web Reference: http://www.NJHomesGuide.com
2 votes Thank Flag Link Tue Jul 1, 2008
Just because you 'agree' on a listing price, does not mean that your Realtor has "guaranteed" that's the price you will receive.

A listing price is arrived at by going through the recent sales, current actives, and any pendings that are truly comparable to your home. Based on that data, you and your agent arrive at a "marketing price". Your agent doesn't just unilaterally arrive at a price.

If the marketing price that you've determined together, fails to garner an offer, or if market conditions change (which they always do... ie: the sale of the house listed across the street, that's exactly like yours, and it sells for $50,000 less than you're listed for...), then you have to be prepared to adapt to the new market.

The real estate market is a living market, just like the stock market, that goes up and down.
2 votes Thank Flag Link Tue Jul 1, 2008
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
Yahoo, my opinion is most overpriced realtor listings are also just testing the waters and aren't urgent sellers.

Bay Area, I'd like to see you find an agent who will agree to that. And I'm SURE you'd have agreed when the market was going up, to give whatever you made ABOVE the listing price to the agent. ;) (Which, by the way, is illegal). As an illustration of how ridiculous the comment was, 5% commission on a 600,000 house would be $30,000. If it is overpriced and sells for 525,000, you are seriously deluded if you were under the impression that the agent was going to kick in 75,000. You are just baiting. And just a guess, probably also a renter in his 20s.
2 votes Thank Flag Link Tue Jul 1, 2008
In Rocky Mount, Virginia (Franklin County), many of our listing prices have decreased by 14% over the past 3 months. These properties represent REAL sellers and they're beginning to see more activity. It's hard for a seller, who just purchased a home 2 years ago to walk away from the closing table today leaving a check instead of receiving one. However, if that makes a difference in paying 2 mortgages because of a job transfer, etc., we must move on and not dwell on what happened in the past. Sellers MUST be willing to negotiate when buyers come along, because we're not sure when the next opportunity may arise. Buyers are out there; however, many are sitting on the fence because of an unstable economy and high fuel prices. Our housing inventory is terrific, interest rates are great, creative loans are still available even without subprime, and REALTORS must give good pricing advice (even when owners don't want to hear it). Properties priced right are definitely selling! 80% of our buyers must sell before they can make a purchase. Therefore, let's price them right and get the cycle going again!
Web Reference: http://www.BillyKingery.com
2 votes Thank Flag Link Thu Apr 3, 2008
You and your comrades have a huge hand in this ...

It's *your job* to school the sellers properly with a real deal strategy .. you do this everyday, most consumers do it every 10/15 years ..

If the seller is adamant about some silly price, then walk away .... the reason why you don't walk away is because you want the listing, you're hoping one of the other 2,863 agents in the area will get it done.
2 votes Thank Flag Link Mon Jan 28, 2008
Thank you Ginger.

Retired:
First, as the Realtor's love to say, "Real Estate is local." The size and price range of house I am selling has increased in value 10% over the past year. Second, the house has appraised for $100,000 more than the selling price. Third, if you buy below market value and the comps justify the improvements, then you should get back what the comps justify. Just like it doesn't matter "how much we put into the home" it also doesn't matter what we paid for the home.

We put too much money into the home because half way through, the comps were sky rocketing up and rates were low. If the master suite and kitchen were all new, then the remaining bathrooms would look horrible. A million dollar buyer would not spend that much unless they were done too. Then the bottom fell out and realistic prices came back. The homes with 4 bedrooms, 1 bathroom, leaky windows and 60 amp electric don't sell even with the granite countertops and SS appliances.

If we had priced it right in the first place, we would be making $100,000 more than by pricing it wrong.
Sincerely,
Ruth
Web Reference: http://www.oak-park-il.com
2 votes Thank Flag Link Fri Nov 23, 2007
Ruthless, Other/Just Looking in 60558
MVP'08
Although he does have a point. I have advised some neighbors NOT to redo their kitchen in the hopes of getting a higher price for their house. It would certainly put their house higher up in the list of those that would sell first, but wouldn't add a cent to the price. A complete renovation, however, obviously would be different. I suppose YMMV depending on what part of the country you are in, but I usually advise those who ask me to do upgrades (now) if they want to enjoy them while they are in the house, but not with the expectation of getting a ROI.
2 votes Thank Flag Link Fri Nov 23, 2007
It will take agents showing a little tough love to their clients and telling them the way it is. It will also require agents not taking overpriced listings. As long as we do, we are creating our own problem.
2 votes Thank Flag Link Thu Nov 22, 2007
Susan wrote:
Isnt it possible that many people have their homes listed at an unrealistic price because they have refinanced them to the point of having little or no equity left?
~~~~~~~~~~~~~~~~~
It doesn't matter what they owe, what they paid for it, how little or how much. It's up to us to educate the consumer about the market and similarly priced comps. We can't "make" them do anything, though, and there will always be agents who buy listings.
2 votes Thank Flag Link Tue Nov 20, 2007
Wow, Ruth, those agents weren't gutless. Just lazy and incompetent.
Re: overpriced listings - It takes two to tango. Someone has put those overpriced listings into the MLS and it wasn't the consumer.
I am in the early stages of Ruth's postition. I told the Realtor that I wanted to price the house realistically. Then I priced the house 10% BELOW the Realtor's recommendation. I am getting no traffic thru here.
What will it take? Well, to paraphrase from Carmelo's comments below: We consumers have to put our foot down and say LISTEN. We want a marketing plan. A plan to realize the highest possible value, whatever that may be. We want a true pricing analysis. We want something more thant throwing it in the MLS and hope it sells.
If the realtor wants to cut the price, I won't hesitate to do it. But I would like some substantiation rather than throwing darts with a blind fold on.
2 votes Thank Flag Link Mon Nov 19, 2007
Kudos to you Darlene. And thank you to the agents who have responded honestly.. I am putting my home on the market, and i have had to take a good dose of reality. As a mortgage broker with relationships with many realtors, I know the reality of the situation. It amazes me that of the many homes for sale in my subdivsion, so many are priced unrealistically. Especially the FISO's. Better for me, I guess. because buyers will not even consider them and it puts me in a better position.
But I wonder about the realtors who are accepting overpriced listings.
2 votes Thank Flag Link Mon Nov 19, 2007
First and foremost most FSBO tend to overprice there homes, like most FSBO they feel there home is worth more, that is why 9 of 10 FSBO end up calling a realtor to advise or to list. What i do with my sellers before i list is take them out and show them 3-4 comps, then they will realize that there home isnt the best. And if they still feel that they want to overprice it, i walk away because im not wasting my hard earned money advertising because they are fools. So to answer your question, what will it take overpricing of homes? Realtors need to but there foot down and say LISTEN!!!, rather then just worry about listing and getting now showings.
Web Reference: http://www.OurNJhouse.com
2 votes Thank Flag Link Sun Oct 7, 2007
Working with a seller to price a home correctly is a very delicate matter and must be handled skillfully by any Realtor. Oftentimes despite our market analysis and price comparisons, which we validate by actually trucking ourselves out to personally see each listing we are using in our comps, we cannot budge an owner off of their imagined selling price. Folks selling their homes today like to use the "Our house is much better than XYZ house" and "We just put $50,000.00 into upgrades in our kitchen" or the "We need to sell for this much because we need the money for the downpayment on our dream house" excuses. Sellers who purchased their homes within the last 2-3 years are expecially vunerable because with the market slow down, they most likely will not have much, if any equity in their homes should they price them appropriately. There are a lot of Realtors now who will walk away from taking a listing that they know will be overpriced and will sit on the market for a long time and probably not sell. The angst of a seller in this situation is simply unbearable, and they will look at the Realtor as not doing a creditable job, when in actuality their home is unsaleable due to an inflated price. Educating each buyer is the only key and Realtors these days ar quite expert in bring all the facts to the table, and will use all the tools at their disposal to market each property they represent!
2 votes Thank Flag Link Tue Sep 25, 2007
I have lost two listings to agents that told the owner they could sell at XXX price... after I told them it was at less than XXX.... well, those homes are still on the market - without much prospect at the price they are listed....

Unfortunately - the owners had no choice as their mortgages won't allow for a drop... I don't even want to know what will happen if they don't sell soon....

I will say this - for as long as they have been on the market - had they taken my advice - the could've sold by now and saved all those months of overpriced mortgage payments. (... did I just say "I told you so"?)
2 votes Thank Flag Link Wed Sep 19, 2007
Real Estate agents need to stop taking the over priced listings in the first place. ..although I must say, I have been guilty of a few myself in the past. I work almost exclusively expired listings. They tend to listen the second (or third! time around!
Web Reference: http://www.cindihagley.com
2 votes Thank Flag Link Wed Sep 19, 2007
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
I'm saying is you have absolutely no idea what you're talking about. "If you ask me to drop the price of the house by $30 K while making $30 K commission..." ....if your house is overpriced you can reduce it or not sell it. Your choice. You'll probably look back when you're offered 40,000 less and wish you'd taken the higher amount. It isn't the agent's fault you think your house is worth more than it really is. In fact, if you were my client I already told you that. I probably didn't even take the listing.
1 vote Thank Flag Link Mon Jun 30, 2008
unrealistic is when a realtor asks you to lop $30k off the price of the house in order to make their job easier while essentially earning the same amount of commision.
1 vote Thank Flag Link Sun Jun 29, 2008
If I were asked to reduce the asking price the first person to get a paycut would be my realtor
1 vote Thank Flag Link Sat Jun 28, 2008
Aside from educating sellers on our current market conditions, and that SPECIFIC market where the property is located, because looking at the entire market is just too general to make any real conclutions. You have to also look at the Broker and blame them. Many brokers get greedy and all they want are listings to show, they don't care if it wont sell, but it looks great on their page. That is a huge reason what inflates the prices on these homes, brokers who take anything at any price without being realistic. It's not really the homeowners fault, at-least not complete.
1 vote Thank Flag Link Mon Apr 28, 2008
We must educate sellers of the shift in the market. A year ago the average time on the market was any where from 40 to 120 days today it is nine months to a year simply because of the shift in the market where we are experiencing the correction of the subprime lending that has brought us a flood of foreclosure. It is best to market the property correctly with pricing and technology so that we are not faced with more properties siiting on the market and become what we call expired properties due to the fact alot of agents and realtors are not being honest with their pricing but rather have a listing just so they can say they have envintory. This is not being fair to the home owners and the agent and or realtos reputation. this is my oppion and hope it helps.
1 vote Thank Flag Link Wed Apr 23, 2008
I believe we need to do our best to educate the home owners, which I know we all do. Providing market analysis, explaining our local statistics (as compared to the national statistics which they read and hear on TV and radio), asking the homeowners if they would like to LIST or SELL their home (there is such a difference and I explain that, too), and are they really wanting to separate themselves from "my home" feeling to the "home which is on the market"...these are a few of the things I discuss with my clients. I like to take them through homes comparative to their homes with pen and paper in their hand. As we return "home" I do explain this is the last "home on the market" which we are to see...(not their home). Bringing reality, trying to get the homeowners to rate their home as honestly as they would their neighbors, sometimes helps them understand todays market. The homes on the ACTIVE side are there for a reason. The homes on the SOLD side of the MLS are there for a reason. I ask which side do they want to be on. The meshing together of Reality and Realty is not as easy as it once was.
1 vote Thank Flag Link Wed Apr 23, 2008
It merely takes sending these buyers and sellers who are not being realistic to 10 open homes on the weekend that are comparable to their home. Once they see what choices a buyer has these days, especially bank owned properties, and the prices they are offered at, it should start to sink in.
1 vote Thank Flag Link Wed Apr 23, 2008
If the seller is adamant about some silly price, then walk away .... the reason why you don't walk away is because you want the listing, you're hoping one of the other 2,863 agents in the area will get it done.
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I walked away from 2 listings this week, and 1 last week. You couldn't be more wrong, but you continue to waste your time badmouting realtors here. Why is that?
1 vote Thank Flag Link Thu Apr 3, 2008
It's a Catch 22 situation. Of course all the Sellers would love to have a buyer today, but often what the Seller is willing to take or sell for is directly related to the house they plan to move to. There is no use in lowering the price on your 2,000 sq ft home to only be confronted with a market of 1,500 sq ft homes priced at more than what you sold for.
Of course this assumes the sellers are going to purchase a new home and not wanting to just cash out.
There is not going to be a short term answer. A seller will always want to walk away from the table with a fistfull of dollars and then want to retain as much as possible when he buys.

The ones hardest hit in this market are the first time buyers with no equity to trade up or the homeowner that bought poorly and has no equity to move on.
The only true answe is for all the Homeowners to agree to drop there prices across the board on Feb15 at noon. and all buyers get prequalified to buy on that day.
If we are all in agreement.....on your mark.....get set....
1 vote Thank Flag Link Sat Jan 26, 2008
If you give the seller a good price, even if it is not what they want to hear, are fair and honest with them, and walk away because they don't want to price it correctly, they choose the agent that gives them a better price, when it expires, who do you think they are going to call?
1 vote Thank Flag Link Tue Nov 20, 2007
When you find the magic pill to make them realize this, let me know, Darlene!
In the meantime, pick up those expireds and price them RIGHT!
1 vote Thank Flag Link Wed Sep 19, 2007
Perhaps it is in Islip. It's not in Manhattan. Each market is local.
1 vote Thank Flag Link Wed Sep 19, 2007
I think that many times is the agent's or broker's fault. We are professionals and our job is to educate our clients (homeowners) unfortunatly there are many agents out there that don't operate like that and take overpriced listings hoping they'll sell. they are hurting the homeowner and in my opinion hurting themselves.
0 votes Thank Flag Link Mon Jul 21, 2008
sorry to disappoint, but prices are edging up in many areas of the country
0 votes Thank Flag Link Sun Jul 20, 2008
I agree with NJ Homes, especially on the east end, agents are contributing to the inventory problem we have now and therefore the real estate crisis, by listing overpriced homes for whatever reason. Some of them actually think like homeowners do, that their "area" is special, and unaffected. There is a home an agent sold last year for 625,000 that is on the MLS with the same agent a year later for 850,000. These agents really do either believe the seller is going to reduce the price (doubtful) or someone really stupid is going to come along with a bag of cash and no appraisal. And the astounding thing is that rarely, but occasionally, someone like that DOES come along and then everyone else thinks their house is worth that much, too.
0 votes Thank Flag Link Wed Jul 2, 2008
Either a property is priced to sell or a property is priced to keep it.
0 votes Thank Flag Link Tue Jul 1, 2008
I'm pretty sure its a sign of the apocolypse, but I agree with JR in all the recent posts.
0 votes Thank Flag Link Tue Jul 1, 2008
if we agreed upon a listing price and
you are unable to sell at that price, the difference would come out of your commission.
0 votes Thank Flag Link Mon Jun 30, 2008
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