We are having a contest company wide where we try to get our clients to lower their price by 3% or more...

When I do comps, I always come in on the nose, I don't feel comfortable even asking this of my client.

Has your company asked you to do this?

Just amazing!!! god, if the general public got ahold of that, your company would be the ethical laughing stock!!

not to mention add to the already poor view of agents in the public eye.

So right after your listing appointment where you explained to your potencial client you could get the highest and best offer are you subject to a trip to cacun to get them to lower their price..

so sad...

BUT HEY!! I'll print this post and use it in my listing presentations....

Thanks..

Ethical laughing stock...not sure about that. It all depends on the area. In Denver, there are alot of listings that are overpriced, the reason they have been on the market for so long. To try and get them to lower their price is doing them a favor (if they really need to sell their home).

And as far as using this in your listing presentation, I would shy against that if I were you. For someone that publicly bashes their collegues, I would hope your clients dont see some of your posts.

Because of the ongoing war between discounters and traditional brokerage firms, I would advise my broker against such tactics. Not to mention what would happen if you office's clients found out about that little contest. Probably a lot of formal complaints , potential lawsuits for breach of contract, and cancelled listings If your broker is not intelligent enough to understand why such tactics are detrimental to the industry as a whole and traditional brokerages in particular, then I would seriously consider finding a new broker. This type of thing is not necessary if the home is priced correctly in the beginning. Orangecrest, it sounds like this is what you do already, so continue to provide your clients with the highest possible service. Do not sacrifice your standards for ANYONE, not even your broker. We as REALTORs do need to continually raise the public's perception of the value that we bring to each transaction. Rick, I have read many of your arguments against traditional firms and that is your right to post your opinion,but,in my opinion, if you cannot sell prospects on why it is to their advantage to work with you, above all other options including what they were doing before they met you, or nothing...if you cannot do that without bashing your colleagues, then you sir may need to explore other career options. There is a reason it is considered an ethical violation by the NAR, and subsequently all state and local associations to speak neagtively of other REALTORs. This is because we all work together at the end of the day. I don't know you, nor your level of productivity, but I can say with a high level of confidence, that you co-op far more transactions, than limited consensual dual agency.

That's OK, not really something I would expect a discounter to understand.

This post was directed toward those that I feel are creditable and can shed light on the subject.

As showing this during your presentation, maybe they can explain it to you as they lead you to the door.

Perhaps you can explain why HUS sent me a postcard for someone elses listing, with "Just Listed" across the front. Now that is good listing material.

By the way, the reduction is for listings that have been listed for longer than 30-days. I see that others understand that I wouldn't reduce a new listing or someone who I am giving a presentation to.

But like I said, I don't expect a discounter to understand.

Thanks Rising

I believe Floyd Wickman talks about this. It makes sense. If a property does not have showings, you are supposed to drop the price in increments until you start to get showings. Too many agents have been taking overpriced listing for too long and it's starting to catch up with them.

As for Rick, I doubt he's even an agent.

Not a problem Orangecrest.

A couple of weeks ago I had a listing near UCR that I sold in 2-days. A gentleman calls up about a week later asking how much it went for, I told him they got their asking price.

I then tell him I can send him a CMA for his house if would like. He Agrees.

This is when it gets funny...

He knows how much the other house went for, which is basically the same as his. The CMA also shows all the houses in the area simular to his, and the prices.

They comp out about $380K.

He tells me, yeah I am thinking about waiting a couple of years, but if you think I should sell now please let me know. By the way I would like to place it on the market at $500K.

When questioned why, being overpriced by $120K. He stated that he had upgrades.

Asked what type of upgrades, he said well... Nothing really special but he felt it was worth it.

I told him he will have to justify it to the buyer's appraiser as to why it is $120K over the area comps.

He asked for me to keep him posted on the market conditions.

Yeah I'll do that.

I expect to see a FSBO, HUS or A2S sign out there soon; it sure won't be mine, LOL!

Maybe this is why I see so many discounter signs end up in the trash or behind fences, I don't know, just a feeling I get from Rick...

Thanks Ben... Also, everyone in real estate knows, prices normally decline slightly after summer.

How Ironic,

I don't know what company you work for and frankly I can see why you are too embarrassed to say.

Now, here you go bad mouthing discount companies and expecting them to take a way over priced listing.

Isn't it a little ironic you started a post in which your company can't sell any of it's listings and actually (instead of a sales/listing competition) has a competition to see who can get their clients to lower their price the most.

Now that is the pot calling the kettle black.

Orange, all I have to do is sit back and wait a few days, you seem to find a way to embarrass yourself without my help.

Actually, you should take that listing! you can list for 500K, get him to lower to 380K..

CONGRATULATIONS!!

YOU WIN THE STEAK KNIVES!!!

I think your broker had good intentions and probably meant to get price adjustments on only the over priced listings. I'm not too keen on the contest because if a competitor got their hands on the contest rules, they could put some real negative spin on it.

For your next contest try a steak & beans contest. Just make two teams and winners eat steak, losers eat beans for first course, then steak.

Good Luck,
RELO

Let's face it the price is always right when you have a buyer. The trick is to get a buyer that will pay as much as you can squeez from him without any appraisal issue.

When I hear agents say they can price a house right then later discuss "price adjustments" I'm led to believe that somebody has lied at the listing presentation.

OTOH, a listing agent could say hey I don't know what the right price is but here are some comparable sales you price your own house and I'll let my marketing bring the most buyers that'll get you as much as possible.

When you allow agents to do a home inspection, disclose agency on a PSA, and quote a "right price" but let them do price adjustments that tells me somebody is doing funny business.

There wouldn't be a need for a company wide contest if houses are priced right.

Try $1 and see if that's priced right.

BINGO !!! I can hear it now... "Look dear seller, you don't want to go to that discount company and save a few thousand bucks, let me sell you house for XXXX and I'll cover my commissions"

5 weeks later... "Mr. Seller, It appears we may have overshot the market, would you consider lowering just a bit so we can get this sold, I can still make my 3% and oh by the way there are some great steak knives on the line".