However, we can only suggest a listing price to our clients. Overcoming objections is just part of our job.
Giving them factual data, we can show them, what price, homes like theirs, have sold for in the neighborhood.
It's not our job to force sellers to list below their expectations of what their home is worth. It is our job to use market data to give sellers market knowledge. If the sellers choose to disregard the information, we need to list the home, at the seller's price and allow it to be rejected by the market. .
A listing price has nothing to do with our commission. We are paid, as a listing agent, and a buyers agent, to get the highest value for a client, on either side of the transaction.
May I remind you, that we don't get paid until a home closes Zero from Zero is still Zero. It doesn't behoove us to take on a listing that we don't know we can sell.
A home is only worth what someone is willing to pay. Comparables are only past historical data. They are tools we use to perform our job. They are not the end all, be all. It is a starting point. And with good communication, we get the job done. But, they are not a guarantee.
Most sellers have an emotional value that they have placed on their home, long before they EVER even begin to interview agents. And that price has nothing to do with the listing agents competency. Or market knowledge.
As an agent, we must present all offers. We can't force the sellers to take offers.
So, I ask you who's hurting who? Are agents hurting their clients? Are buyers trying to get a great a deal ? Or are sellers not willing to let go of their home at a price a buyer is willing to pay?
Some agents have put systems in place that afford them the luxury of being able to walk away from listings. And some have not.
I've listed homes, in this market, that have had multiple offers within hours of listing.
In either case, you as a buyer should have representation negotiating on your behalf, that knows your market ,just as well as the listing agent. Which would afford you the luxury of depersonalizing your transaction.
It is our job to take the stress out of Real Estate Transactions. We negotiate everyday, without emotions because our only vested interest is a satsfied client.
On either side of a transaction, you need to interview multiple agents. There is no special number as to how many you should interview. But, you should feel comfortable that your agent has your best interest at heart.
If you'd like a list a questions you should be asking your agent and be able to feel comfortable with their answers. Please feel free to contact me directly.
Clearly, some agents are hurting their clients, in Lombard, and elsewhere around the country, by recommending a "too-high" price. But you've also clearly identified part of the "reason" why sellers overprice their homes when you said "once in a while some idiot will overpay" and those agents/sellers are holding their breath hoping that their home will be the one that attracts another idiot.
Agents recommend listing prices, based on recent (less than 3 months) comparable sales in the area. We try to make sure the homes are truly comparable, and very near the subject property. We also try to recommend to the seller that they might gain an advantage by pricing "below the pack" rather than in the middle of the pack or at the top. Sellers don't always take our advice.
Ultimately, the decision belongs to the sellers. We can't force them to list where we want, nor can we mandate that buyers pay more. And we're not overly concerned with the extra $150.00 we might earn for an additional $10,000 in list price. At that point, we have to decide if we want the "overpriced" listing. Some agents accept them, hoping that the sellers will see the light in a short period of time, or perhaps that "idiot buyer" will appear. Some agents decline to take those listings.
Interestingly enough, Mike, on the flip side, agents are often accused of forcing sellers to price their homes too low, in an effort to make the agent's job easier, just to get the "quick sale". That we're not concerned with the sellers getting "top dollar", merely concerned with turning and churning those listings so that we can keep our commission checks coming.
So which is it? We're overpricing, or we're underpricing. And apparently we're all doing it as a large single-minded hive. Today Lombard, tomorrow the world!!
Please, when it is time to sell your home, interview at least (3) local Realtors (who work Full-Time), in your town and ask for a CMA from each, this way you will price your home to sell, not sit on the market at a price that is unrealistic.
Wow! Not all agents are created equal, and I'm sorry that you had a bad experience. But, we shouldn't all have to pay the consequences. Many of us do work extremely hard for the income that we make. Many of us are underpaid for our services.
Unfortunately, as is true in any profession, there are always bad experiences, and everyone else in that profession gets judged by that bad experience.
I suggest that the next time you decide to buy, you interview multiple agents, if you have to, to find an agent that will work on your behalf. Ask them questions, trust in their answers and ask for references.
If they're serious about there profession and getting the job done right for you, they will work with you to make you feel as comfortable as you need to feel.
I still want the 2nd house but at a fair price. It's not my fault that the current owner overpaid 4 years ago- and this blunder seems to be what is driving the current asking price.... the most unfortunate part is that I'm probably going to enter into a lease now and be unable to buy when their price comes down. However, I'll also be able to save a lot more money in the next year and hopefully prices will be even lower next year. Hopefully you agents will get used to working for your money like the most of the rest of us do.