Home Selling in Chicago>Question Details

Angie, Home Seller in Chicago, IL

Do I have to list my condo the price the agent suggested?

Asked by Angie, Chicago, IL Mon Jul 12, 2010

I bought the condo for $285,000 $20,000 (for additional parking) = $305,000 in Dec.2007. The agent suggest that we should list the home for around $265,000 - $275,000 the max. Then with negotiation if anyone was to buy it, it be around $250,000. I understand the market is really bad right now. But is it really that bad where I have to lose $70,000? What should I do? Could I list it with the same agent, but with a little bit higher price? The agent showed me the CMA. All those properties in there, the prices are higher than what he wants me to list. Those properties are mostly 2 bedrooms and one parking space. I have 3 bedroom and 2 parking spaces. Should I find another agent instead? So far, he is the first agent I went to.

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Answers

11
Hi Angie-

You can call another agent to give you a Market Analysis.

We as agents can only suggest a list price to you. We can also decide on whether or not we want to take that listing and you can decide on whether or not you as a seller want to list with that agent.

Make sure they explain market conditions in your area as well. What is the list to sales price? Average Market time? Absorption rate....how many condos are on the market to how many have sold in the past 6 months.

I hope this helps!
0 votes Thank Flag Link Mon Aug 23, 2010
One of our jobs as an agent is to provide the best information: CMA, market conditions, and home valuations to our clients. Remember, we represent you and our goal is to meet your best interest and will list the price accordingly to your desires, but not astronomically off the CMA range. It’s always best to receive a second opinion if you are not totally comfortable with your current listing agent’s services.


Mike Yun, Broker
Jameson Real Estate
(414) 526-8998
0 votes Thank Flag Link Sun Aug 22, 2010
I would recommend getting an opinion from a second agent, the price is the most important thing to consider.
0 votes Thank Flag Link Tue Aug 17, 2010
Angie, the price you chose to list your home is your's not the agent. However, the agent has a choice to take the listing at the price you want to list or decline to take the listing. It is the agent's goal to get the property sold in the shortest amount of time. Too often homes are overpriced and stay on the market much longer than home that are truly priced right. If the CMA shows prices that are higher than his suggested listing price you should discuss the reasons for the difference. List where you are comfortable but be realistic as well. Good luck.
0 votes Thank Flag Link Tue Jul 13, 2010
As you already stated, the market is very difficult for sellers these days, Angie. Based on experience, a 70k loss over the last 3 years as the market has dipped does not sound as crazy as you might think.

It is very likely that this agent is trying to assist you and help you sell your condo for the best price possible. However, unless you have a signed listing contract, you are not obligated to list your property with this agent at all. The agent works for you and cannot force you to list your property at any price.

Whether or not the agent is correct about the pricing he or she is suggesting depends on way too many factors for us to judge - location and neighborhood, floor level, number of units in your building, number of similar properties on the market, average market time, condition of your property, health/strength of your condo association, etc. If you are not certain about this agent's assessment, you can check with other agents to see what their assessments of the value of your property and proper list price are. Just be honest with the agents you are asking to help you determine how you should list your property - let them know that you might have already chosen an agent but are looking for a 2nd opinion.
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Tue Jul 13, 2010
Angie
In any market, an average of 25-35% of listings sell within 30 days. The remainder, 75%, take a lot longer to sell. Why did they talk so long to sell? Because they were over-priced.

Remember, we expect 10-12 showings or one offer in the first two weeks on the market, otherwise we reduce the price, usually around 5%.


Also, list price is a marketing tool. My last listing sold in one week with a full price offer. My newest listing was priced at market and has five offers. It is much better to be slightly under-priced, and sort through offers, than over priced, waiting for offers.
0 votes Thank Flag Link Mon Jul 12, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Sounds like it might be a good idea to talk to another agent, there appears to be a lack of communication and trust between you and the agent you talked to already. The previous post is absolutely right, what you paid for your property is not relevant in what it will sell for.
Your listing agent should sit down with you and go through the comps to help the two of you decide what listing price makes sense. If you have questions or want more comps, it is ok to ask.
You as the owner have the final say of course. Still you are paying a real estate agent for their expertise, so you may want to take their advice.
If you list the property too high, you will likely miss buyers. There is a lot of inventory on the market, so the right pricing is critical. You can list it higher, then adjust the price based on the amount of interest. No showings - definitely drop the price. Showings but no offers, try to get feedback from the agents showing the place, maybe you can do something to the property to make it more appealing (like drop the price :) .
0 votes Thank Flag Link Mon Jul 12, 2010
You are the one that determines the list price. As real estate brokers, we can only try to educate you on the current market conditions. Unfortunately, sometimes it is bad news. I would look at all the sold comps within the last 6 months and what is currently your competition on the market. You want to be the best home at the best price in order to expose your home to the most buyers.

Please feel free to contact me if you have any questions or concerns.

Thank You and Have a Great Day!

Sincerely,

Paula Calzolari
Broker Associate
Prudential Starck Realtors
pcalzolari@starckrealtors.com
Cell # 312-968-9335
0 votes Thank Flag Link Mon Jul 12, 2010
First off, you can list your property for as much or as little as you want to. An agent can only suggest a price to list it at.

As to is the market that bad, yes it is. Prices have fallen a lot in the 3 years since you bought it. Your going to take a loss no matter what, but it depends on what your unit looks like/upgrades in there.

I would go out an interview 2-3 agents, and go with the one you mesh best with. I would be happy to help in anyway.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
mlaricy@americorpre.com
708-250-2696
0 votes Thank Flag Link Mon Jul 12, 2010
Angie,
Good question. Your 3 bedroom and extra parking space is valuable. However, and this is a biggie...the selling price will not depend on what you paid or on what you owe! Take recent sales and figure the per square foot selling price of the condo AND the parking space. You can get a good market value that way. Ask your listing agents, someone who really knows your area of Chicago to to this for you. It works in Florida. Just forget about what you paid and forget about what you owe if anything...just focus on sold properties in your building.

Debbie Albert, PA
Coldwell Banker Residential
Web Reference: http://www.ronanddebbie.net
0 votes Thank Flag Link Mon Jul 12, 2010
From what you say I think you clearly should speak with a few other agents. Why would he give you comparables of 2 bedroom units when you have a 3 bedroom unit??? Something does not sound right.
It is true that people who bought back in 2005-2007 are often losing their shirts because that was the peak of the 'bubble' and prices have come down and in some areas down a lot, but you still need to do the comparisons.
Let me know if I can help.

philip
0 votes Thank Flag Link Mon Jul 12, 2010
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