gabriel palo…, Real Estate Pro in Pompano Beach, FL

Should an agency be reprimanded for taking a overpriced listing?

Asked by gabriel palotas, Pompano Beach, FL Thu Dec 10, 2009

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The Medford…, Agent, Fremont, CA
Thu Dec 10, 2009
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Gabepal:

If a broker takes an over-priced listing, markets it at an obviously high price, spends a lot of money to advertise it, has a sign hanging out there exposed for a long time with no obvious results, suffers the ridicule of the local real estate establishment and neighbors … and eventually doesn’t sell because it was over priced and EVERYONE knew it …

Isn’t that penalty enough?
2 votes
gabriel palo…, Agent, Pompano Beach, FL
Thu Dec 10, 2009
Rhonda,
It is expected that the asking price will not be the same as the selling price. So let me ask what is an overpriced listing? 5% - 10% -!5% -20%- 50 % over recent comps.
When does it become overpriced?
My posting this question is not to put down listing agents. It is to make the sellers as informed as they should be when they choose to sell their home and expect to move the property for the highest price in the shortest period of time .
Many sellers today cannot afford to pay their mortgages beyond a few moths I think it is straight talk they need from us right now. The market is cruel enough for many that could not sell. I think we owe the public the truth . Getting a listing has never been easy and in many cases the agent who promises the highest price
got the listing. Sellers listen to your agents take their advice seriously. Wishing and hoping and praying works for many. The truth works all the time. Promising false hopes should be punishable.
0 votes
Rhonda Holt, Agent, New York, NY
Thu Dec 10, 2009
Now as a broker you know that we, as professionals cannot help taking an overpriced listing here and there. The fact is, most sellers want to start higher than usual and it is our job as licenced brokers or agents to help them to see reality over time. These types of sellers need alot of activity, offers and facts in order to work them down in price. I wish we lived in a world where every seller is realistic but that's not the case.

Now if you are being aggressive with buyers to buy these homes at these ridiculous prices then that can be a problem for your company then your reputation is at stake. Actually, I have many buyers that will not do business with certain offices (big names too) because they see a trend of overpriced homes.

So, I think if an agency is dealing in bad business and forcing overpriced homes on buyers and exaggerating the truth about comps and so forth then that company does need a slap on the hand.
Web Reference:  http://www.KandHhomes.com
0 votes
gabriel palo…, Agent, Pompano Beach, FL
Thu Dec 10, 2009
Carl, I think your answer is right on. April you posed the question better defined than I did.
i never have a hard time walking away from an unrealistic seller who sets his goals beyond market demand.
I guess I have been out of the fishing game a long time ago. An agent who takes on overpriced listing in a depressed market is a true optimist or a fool. I have been a buyers agent for a number of years . Working with unrealistic buyers is not easier.. Working with professional realtors that list to sell are a privilege and a pleasure.
Good ethics are always observed a true professional delivers. Just in case check out the expired listings in your community and tell me who benefited from that listing. Usually the next agent who tell the truth.
In all markets there are sellers who want to play and some to sell. I have little time for playing with realtors that are convinced that an overpriced listing does anything but waist time.
0 votes
Mack McCoy, Agent, Seattle, WA
Thu Dec 10, 2009
No. Why, did this happen to you? By someone with authority, I mean.
0 votes
Keith Sorem, Agent, Glendale, CA
Thu Dec 10, 2009
You might want to read the Realtor Code of Ethics at Realtor.org.

If you are basically complaining that a competitor "bought" a listing, maybe it will not sell at that price.

However, when a seller has to sell, has no alternative, then sometimes the only way to get them sold is to list it at their price and show them by experience that they need to price it realistically, and work on a price reduction.

I have lost listings because of this..one sold for 20% more than we thought it was worth...
0 votes
April Crowder, Agent, Charlotte, NC
Thu Dec 10, 2009
I find your question a bit odd. An agent can take a listing at any price. We tell sellers what their property is worth but ultimately the sellers decide the listing price and then we decide if we want to take the listing or not. Maybe a better question is "Should agents be reprimanded for lying about what they can get for the house?" I know some agents lie to get the listing.
0 votes
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