I stopped by a FSBO and picked up a flyer from their info tube today. They had a list of all the homes sold within 1/2 mile of their house attached to their flyer. A real estate agent had provided them the list.
They used this list to justify their asking price not taking into account that half of the homes on the list were 20 years newer. The mini CMA does have an agents name on the bottom of it.
I came home and did a quick CMA and the home would actually be $100000 less than what they are asking.
If I was that agent I would not be happy with the fsbo distorting my information. Anyway should they be allowed to include info from a Realtor in their flier?
How would you approach this fsbo? I would love to educate them on how a proper CMA is prepared but do not want to offend.

Well, there's the old argument about winning the battle but losing the sale.
If the FSBO is this far from reality -- and never mind their misuse of info that was probably given to them in all good faith -- they've a long, long way to go before they'll be worth your bother (or any other agent's for that matter).
Part of the learning experience in this sometimes wild crazy business of ours is knowing when to walk away from something that's likely to be a total waste of our time.

Duncan

I understand. I have avoided overpriced listings at all cost. I just kinda feel for the agent on this one. I wonder if they know their info is being used and I also wonder if they know they provided a horrific CMA for this person.

Maybe the person asked for a list if all homes that have sold within a 1/2 mile radius of their home. I am sure that is something we would all provide to a prosective client. How they are using that information is up to them. If they feel that they can justify a higher than normal price and sell it themselves then they are a wish waiting on a dream. All we can do is provide information not make choices for people.

By the way yes I walked recently on a possible listing. The client wanted to list their home for 20% over the area and cut my commision and pay a below market co-op commision. He found someone else to do it! I guess I will be talking to him in another 4 months as his home has been on the market for 2 months now.

A single homeowner can almost do anything they want in their flyer and in their asking price... There is no "you can't" or "that's not OK" as far as the scenario you outlined.
If an unrepresented buyer wants to pay them their asking price, then that's between them (until an appraiser gets involved.)
--A

Hmmm.....how do you know the agent didn't intentionally mis-lead them? I mean, he could have offered to do "CMA" but in reality gave them a list of the entire area KNOWING they were likely to overprice their home. What happens when it doesn't sell? He gets the listing and does it at the right price. I wouldn't feel too sorry for him.

Jeff, just didn't occur to me that an agent would use such an idiotic tactic to gain business. I still have troubles seeing the bad side of people until they prove it to me and I have been around a while. Thanks for the input. I sometimes need a reminder that there are snakes in the grass out there.

Jeff then again, why wouldn't they have done an accurate analysis from the get go so they don't have to justify the inaccuracy later?

Jeff- That would be cutting off your nose to spite your face.

Eldo-
If it were me, I would call the agent listed on the flier to make sure he/she knew that their CMA was being used in that way. There are too many instances where we are viewed as information sources only. This agent may have been taken advantage of by the FSBO. The agent should send a "cease and desist" letter to the FSBO!

I'm not saying this happened, but what if the agent asked the seller "would you like a market analysis with ALL the 3/2s in the neighborhood"? Maybe the agent didn't have the square footage or age, or whatever. Of course the seller's thinking "cool, all I need to do is price my house at the average price and I'll be ok". Of course that isn't true and it's not a proper analysis.

If the seller comes back to the agent and wants him to list it, the agent can THEN do the proper one and point out "hey, I asked you if you wanted ALL the houses on the market and you said yeah. You can't price your home the same as a new house. You should have looked at the list and priced according to "like" properties. Let me show you what the real price should be".

Was the agent dishonest? Maybe, because he called his 3/2 hotsheet a "CMA". He can always blame the owner for not "understanding" how the home should be priced. As long as his "CMA" didn't just list the expensive properties, he can claim the homeowner mis-used the data. If he did that, it's a pretty sneaky way to get a listing.....

Hey Greg, thank you. In all honesty this is the response I was looking for. I just wanted reassurance that this would be the proper thing to do...

I agree with all of these. I think that the agent did do this to try and get the listing. I see stuff like this happen alot around where I am at. The agent is trying to buy the listing. And really the agent might even take the listing at the price that the FSBO has it listed so that he gets the listing, and will then turn around and say that the market is changing or something like that.

If you are willing to take the chance to not get this listing, I would do a more accurate CMA, with the information in there that would actually put it at a range that the buyers will be willing to look at. I would then send him a letter and this new CMA, and would just siply write that you had picked up a brocure and thought that you would like to know that your house really should be priced "here". Tell him to call you with any questions and then jsut talk to him. I know that FSBO's really are out there alot of times on what they think that their house should sell for,but your honesty might just win you the listing. Sometimes you have to gamble alittle. good luck with it all and keep me posted on how it all turns out.


Amanda

You called it a mini CMA. Did the agent who provided the list give his recommendation as to market value? Did the seller call is a CMA? Greg seems to think the agent did in his comments.

A lesson learned here is to ensure when you do a CMA, that it contain a statement that any part of it or the whole, may not be used for marketing. Thus the agent protects him/herself from the misuse by FSBO's who only use the part they want. Have the seller agree to that in writing, then you have recourse when your name gets smeared across the neighbourhood!

Actually I had a client who was once given a CMA by an agent pricing their home around $389 I think it was. A few months later, (agent didn't get the listing) that same agent brought in an offer of about $310!!!!
--A

Norm, the flier in the box was a 1 line CMA Report. Amanda and greg I like both of your thinking. I think for now I am going to do what Amanda said. It won't hurt to try to get the listing and do it honestly.