I have a listing, my first actual listing as an agent, that is expiring this coming week. Let me give you some details about it and give me some feedback on whether or not you would relist it (the owner wishes to do so). I'll comment later on on what I plan to do...

-Listed at $40,000, very nice, very clean home in a somewhat questionable neighborhood.
-Listed 3 months, had 4 showings with nice feedback from agents, but no offers.
-No other house in this area and of this quality has sold for more than $20k in the past 6 months.
-It's vacant, paid off completely and has no other financial issues other than property taxes.

-Owner wants to relist, but at $38,000.

Sure, it's little information now, but I want your first impression. Lemme have it!!!

I don't know Michigan.

If you don't re-list it, someone else will. You'll wish it was still yours . . . . it will always be one of your Children.

Never take a Client Seller for granted. This is still a valuable possession of his. Help him get the most for it.

This can be valuable education. The principles involved are the same whether it's $40,000 or $400,000.

It's easier to keep an old listing than to get a new one.

When the market turns, you want to be there.

What's it cost to keep it active ?

Some overpriced listings get NO Showings. At least you've had some . . . . unless they're just casing the place.

You have a cooperative and unemotional Seller - work with him. Show him/her the Comps and then get him to give you permission to put a "Make an Offer" Topper on the Sign and use it in your advertising.

But like I said, I don't know Michigan (except maybe that in 1837, it was the 26th State to enter the Union). Good luck!

"-No other house in this area and of this quality has sold for more than $20k in the past 6 months."

That says it all.

"-It's vacant, paid off completely and has no other financial issues other than property taxes."

Owner does not want to be a landlord or pay taxes any longer. Problem is the market is down and they will not get the 38k.

They need to list in the 20's to get an offer.If they won't do that you are wasting your time.

Be ballsy and tell them like it is. I have to tell sellers like it is everyday. They either have to take the hit to sell today or have to pay taxes and wait until the market returns and hope the property is not vandalized.

I would price low and sell now while there is no property condition issues that would impact financing for buyers.

Properties are like stocks. Some you sell for a gain and others for a loss but overall if you are making money you are doing good. They can take the cash and do more investing with it and make more on the upside.

You could also do a lease option with a buyer putting 5k down since it is paid off and the buyer buys it down the road.The seller could also just be the bank with 5k down and sell the note of or wait for the buyer to refi out of the note in 2 years.

It all depends on the goals of the seller in what options they want to pursue.

I don't know Michigan that well but from what you are saying if your seller wants an inflated price they will have to get creative.

I agree with what super realtor said. I only add why did it take till now to even concider a new price. That should be looked at on a weekly bases.

What is the inventory in the area, is this one of many? or one of a few? What is the normal DOM? I might agree to relist provided the seller will agree to lower the price every two weeks until sold. It depends on your market and the competition.

So here's what I did after I met with the seller this weekend.

I did NOT relist. Basically, I told him what needed to be done. I walked in with a contract written out to sell at $20k. The house is in the City of Detroit, and there's not much activity in the neighborhood. He wanted to relist at $38k, thinking there would be a first-time buying family that would want a great deal and make an offer on it. Like a police officer or firefighter. I agreed it would be a great deal- just not in this location. (I had attempted to get him to drop price twice in the 3 month listing too...)

No house in the area had sold for $40k since 2003/2004 so price was a big issue. Told him I wanted to sell it, and that means putting out a proper price. He said he wants to sell it- just not less than $38k. So that means he wants hold it...

He just needs to rent it until the market turns back or do owner finance with money down.

Buyers with crap credit will overpay with money down if the seller will finance. He will not get a standard sale at the high price. Like I said you can present him alternatives.

I personally think you did the correct thing. We advise sellers prior to our first meeting that we will tell them the truth, that they will NOT like it, but we can sell their property for the most that can be had in the current market.

If they are unwilling to do so we will not accept the listing.

Also, there is more pain (and pressure on prices) coming.

I'll stick with my original recommendation . . . . mostly because of the OP's statement:


In the past 3 months, I don't think he has done everything he could to learn from this listing responsibility.

Unless the OP has retail listings coming out of his ears, he is not yet at the stage where he should be turning Clients away.

Some need us more than others; but I learn from them all. Good luck!

Very good point. For some reason as I read through all of the posts the fact that it was their first listing got lost.

At this point I am sure that they probably have enough time on their hands to learn from an overpriced listing.

That is the beauty of this forum. Many opinions. This time yours is optimal and I stand humbly corrected.

I unfortunately dont have the listings coming out of my ears, but Ive got a couple more. I believed in the house and would have sold it no doubt- at my suggested price. With the listing, I learned some things about the whole selling process, and Im confident in the plan I had for selling it. So that's good. He just simply wasn't 100% into selling it. And that's not a bad thing, the money from the sale would go to take care of his elderly father. (btw, the seller is actually my neighbor...) I didnt want to continue to list a house that wont sell for what he wants and have to put my money and effort into it for the small commisssion I would get from it anyway. There's more out there!

Should I list or let it go now?
Should I list or let it go now?
If I list it will be trouble..
If I don't it will be double.
So you gotta let me know...
Should I list or should I go?

These are tough decisions when you're just starting out. Eventually this will be a no brainer when you are busy and can be pickier about which listings to take and which are a waste of your time. Have a frank conversation with the owner, show him comps and tell him you will only relist if he prices it according to comps. The other thing to consider is are you getting calls and turning those prospects into buyers from your sign being out?

Agree with Super Realtor: Let it go.
It's $18K overpriced...and that's almost twice the price of comps.
Someone else will have it? Oh well...Let her have it for another 12 months with no offers and then get the expired listing again. In 12 months, lot of things can happen...

First check out the exposure. If you have good exposure, but not showings, your seller is right, decrease the price. Remember it is a buyers market and buyers are very aggressive, especially with this First time home buyers credit. And there is not questionable neighborhood, all of the neighborhoods are good :-)