Someone I know just listed their house at $660k. She had spoken to me several weeks ago checking the CS & I told her they are selling for $500k, she then did an appraisal & it came in at $525k, I know the appraiser. Well I found out she listed it with someone else at $660k. My feelings are not hurt because I would have not listed at that price. Why would someone take such a listing! Oh and on the commissions it states 6% to each agent? Must be a typo. It's a well known brokerage. I am very surprised, I know of someone that is interested but at the $500k range. What do you think of placing an offer at the true price? What do you guys do in situations like this one? It's a big difference! I don't know what the agent is thinking.

I'd present the offer.

The agent is thinking: "I can get some leads off of this."

Or the agent has no clue about the market (some agents are still stuck in the boom time days when you could put a pending rider on the day after you put a for sale sign up..lol)

That's a great typo on the listing, but then again, maybe it's true...maybe the total commission is 8 and they're offering a very generous co broke to entice agents like you to try and sell the ridiculously overpriced listing..

Write the offer.

And keep a printout of the MLS showing the co-broke. Make sure it has the date printed at the bottom. If it's an error, it may get changed later.

And don't mention the co-broke now. The co-broke is an agreement between brokers per the MLS rules, so if you have the "proof" as of today, they won't have a leg to stand on if they change it later.

I would wait to write the offer. The first low offer always dies a painful death while the second or third low offer is taken more seriously. Time is on your side with respect to the seller.

Why would they think they could get more that much more out of it then the appraisal. Another appraisal should come in at about the same value. Especially in the way that appraisors are very conservative these days. Unless there are lots of crazy $660k cash buyers in your area.

Probably isn't !

As a Professional Courtesy, I would probably call the other Broker and suggest that he/she review the rest of this Agent's work to make sure they don't have a complete mis-understanding of how things work.

A pattern may be revealed which will demonstrate that this IS NOT just a simple TYPO, and a little "in-house education" may be in order.

That call will eliminate future problems down the line. The individual Agent need not know "who" snitched; it's for their own good. I'd appreciate the return favor (if we ever made a mistake).

Like someone else already mentioned, print the MLS sheet for proof of the commission they are offering. Then write the offer that the buyer wants to write. Make sure to send in comps supporting your offer. I would not mention the MLS commission though. Just try to get the offer accepted first. Then deal with trying to obtain your 6% commission later.

It still has to appraise. I could offer 20 percent commission and overprice by 200k to cover it but it won't appraise and the buyers broker would have to convince them to pay way over market.

This listing agent must be a real idiot. Just submit the offer with a short timeline for acceptance and see if the seller makes the choice to come back down to earth. Otherwise move on to the next deal.

Just recently I had an agent change the commission in the MLS after we got the home under contract and when I got the HUD's I called her on it and the response was "Oh No..you must be mistaken it has never been that percentage". I always print and save a MLS sheet when writing the offer and she conveniently discovered that her admin changed it without her knowledge after I presented the evidence.
Appraisers in my area are also being VERY conservative.

I came across a listing for 669K in a neighborhood of 300K homes. I just scratched my head.

Some agents will take an overpriced listing to get sign calls. But man, what buyers would want to be shown homes by an agent who tries to sell at fantasy prices. I think that type of grossly overpriced listing will tarnish the agent's image rather than produce buyers who want to work with the agent.

Of course the home has to appraise. Unless the buyer wants to pay the difference, but that would be a pretty stupid thing to do in most cases.

I had a deal where the buyers wanted to pay the difference between the high list price and the low appraisal and our lender said it would not pass underwriting. (very unique house)