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".

A discounter can over price a property just as easily as anyone else can. Plus the final decision on price is up to the homeowner. A discounter is more likely to take an over priced listing because they depend on volume.

UHH NOT!! a discouter can walk away from a homeowner that wants too much for a listing because of volume.

A desperate C21 agent with no listings is WAY more likely to take a overpriced listing!!

In addition, if a property is overpriced the discounter is still saving the client money, we all know a home is worth what the market will pay. If a discounter has it listed, it will always net the seller more money !!

Ben, I don't often hear discounters make the claim but overpriced agents tend to say things like you get what you pay for.

If an agent says you get what you pay for then come back and say hmmmmmm let's adjust the price that agent has lied and now there are fewer buyers.

I can accept the fact that some people buy into perception but the reality is a market price is a market price.

A complete idiot fsbo doesn't stand a chance at marketing against a realtor but we just saw a guy sell his house on ebay for 1.2 million.

To give you an example of how some people are better at marketing than realtors let's go back to the ebay guy.

Most realtors not only doubt that houses can be sold on ebay but they don't know how to get buyers there. I'd be willing to bet the majority of realtors even considered ebay as anything more than a garage sale site.

Now if ebay is a garage sale then how did a house sell for market price there?

My point is you're going to get market price if you know how to drive the market to your house. It's really as simple as that.

Oh Rick, I take overpriced listings as part of my marketing plan. I once heard the best marketing is a yard sign that gets buyers calling?

The only difference is I let people know upfront that I think the house may be overpriced.

Yeah, but, what if the buyer doesn't know that? Don't you think you might be doing the seller a disservice to a point!?

Im guessing you don't use flyers then or if you do, there is no price on the flyers.

I actually asked a lot of potential buyers what they thought of homes with no flyers. About 1/2 thought the sellers agent wasn't doing their job. Most were annoyed they had to call to get info, some said they just kept driving if there wasn't a flyer.

YOU GOT IT! The law says I can't price a house so I let the client price it.

If a seller wants to overprice I'll let him know it and I'll let him do it. My compensation is free advertising.

If I can find it I'll post but there was a study done on this about a year ago by one of the Universities. Basically it said what buyers tell you and what they actually do are two different things. It's a terrible idea to not advertise a price. It's been this way for years.

But it's a whole different story when you can get the buyers hooked using good marketing.

A buyer that doesn't like your house will drive off no matter what you do but one that loves your house will stand in the rain to buy it.

Right, but, the seller is convinced he has priced it right, and here you go tell a protential buyer you think it is too high??? doesn't make sense! doesn't seem like you are protecting the best interest of the client...

Granted your job is to get it sold, but also for the highest and best offer.

The seller thinks he's priced it right that's fine. I tell him it's not but I'll let him go with his price. I don't tell buyers anything other than encourage them to get their own cmas.

My job is to get it sold for the best and highest market price but not at the seller's best and highest price.

I would never guarantee the seller his price. Are you kidding?

I can't argue with that cause who really knows if advertising the price is good or bad? I always do, mostly because I don't take overpriced listings and I want to get as many buyers interested as possible faster. Not overprice it and try and "TALK" one buyer into it...

Well of course you can't guarantee, I never said that... but to some extent you have to "TRY" to get what the seller wants...

IF I take an OP listing I don't advertise the price. I give free listings and I do overpriced listings if it makes sense economically. Free advertising is good for business.

Oh of course, just like I told that other guy. If you need a listing and it is overpriced, that yard sign is the best 30 bucks you can spend.

Taking the listing is enough "trying" for me. There's nothing you can say or do to convince a seller when he's dreaming about a price that's not realistic. All you can do is take advantage of the situation.

Talk too much and you'll lose a listing. Best thing to do is wait for the market to show him what his house is really worth.

BUT !!!! the problem you can run into is a DEMANDING overpriced seller.. It doesn't take a few mulit line ads everyweekend to make you start second guessing your decision to take that listing.

I had enough of those!!! I walk out on goofy sellers!!

Then I will demand he pays for the ad.

If a seller wants a million for his $579K house I'll tell him he's dreaming ( in a nice way ). But he's also going to know that I'm not spending any money on ads.

OP means free advertising for me. MP ( my recommended price ) I advertise for them.

The easiest thing to do is walk out but I really try my darnest to list it for free exposure.

I'll take an OP over a free listing any day. YES I do free listings too if it makes sense.

In that case, you're set! if the seller doesn't decide to find an agent who won't charge him for the ads....

But in that case I guess you would walk out...

I personally think we are all missing the point here. Why does anyone contract the services of a REALTOR? For one thing, and one thing only REPRESENTATION! If we all conduct ourselves according to the code of ethics, and protect and preserve our client's best interest from initial contact through closing and beyond, THAT is all that matters. That is what we are hired to do. Now, I understand that in order to do that, we will sacrifice income, but, if we are to positively affect the public's perception, that is what has to be done. And, believe me folks, I walk my talk. If I interview a seller and they have a price in mind that is not in line with the comps, both MLS and FSBO sales, I simply ask them," Where did you get the data to substantiate your assertion that your home is worth X. Here is my data, where is yours?" Then I ask them what should I tell buyers, most of whom will be REPRESENTED...there's that word again, by another REALTOR, that are looking at the same comps that I have presented to you, so what do I tell them? If I cannot educate them with facts, logic and reason, then I simply stand up tell them that I am thankful for them allowing me the opportunity to speak with them, but, unfortunately, I do not enter into marketing agreements unless I am certain that I can actually sell the house, and at this price, based on the info available, I am reasonably confident that I am correct in my determination/valuation. Here's my card should you change your mind...have a great evening. We have to be willing to walk away, if it doesn't make sense. And as far as telling a buyer anything if you did agree to list an overpriced property, Jaber, I agree with you, you don't need to tell them anything. They are not your client.

In all my training in negotiation I've learned to let the prospect walk out on me. I never walk out on them.

Even OP listings get buyers calling. I like free buyers.

You can't win everyone but I stand by my policy. Some seller might not like the way his wife looks at you so you're fired.

That's life.

Rising, I think you long windedly have the save view I do...

I hate it when we agree on stuff. It's so less exciting.

Free publicity is good, I agree, but, you have to be careful, because it could backfire on you. You don't want to earn a reputation for being the agent that will list anything at any price. Not only do other REALTORs take notice, but, so does Mr.and Mrs. John Q. Public. I guess I can see your point though if the house is not priced too far out of line, and you believe you may be able to renegotiate wtih the seller to lower the price.

LMAO, I think you're right Rick!

Seeing is believing. People begin to see the light after 50 buyers walk through without a single offer.

I've seen sellers drop 50-100K in sale price in a week's time.

If you have a overpriced listing in a pretty good neighborhood, everyone sees that it is NOT selling.

So the perception of the neighbors is: whatever you do is not working... in a big way. Therefore, they are going to be hesitant to list with you.

Ok, here is the mistake with that (all be it good for you the agent having 50 people walk through)

Now you have effectively let 5 of the 50 who would have made offers, walk out the door. Now when the price drops you have three problems.

1. You now need to wait for the next hot buyer (when 5 said no way already)
2. Most people who would have made an offer won't come back. In there minds they have said no. People don't ever want to think price stood in the way of getting what they wanted. They will mentally decide it isn't for them (when in fact it was the price, but pride gets in the way). Now, even though it has dropped in price they won't come back.
3. Market time has killed it. You have the, "wonder what's wrong with it scenario". Buyer asks agent (after the price drop mind you), "how long has this been on the market?" agent replies with, "57 days". Hummm... time to make a screaming low offer.. Now the seller has really shot himself in the foot. But of course Jaber, we all now its the agents fault when the house doesn't sell.

Sometimes it doesn't pay to take a overpriced listing.

And the secrets to getting listings is to walk away and not get a listing at all?

You don't take an OP listing because you want to sell a house at top price. You take it for free advertising. You need a good system of handling both sides to make things work out.

And no the neighbors don't always blame the agents.

You guys are looking at OP from a listing perspective. Things are a little different when OP is used from a marketing perspective.

OH MY GOD!!

I come back and my mail box is full of Jaber and Static, I mean Rick trash!!

You guys couldn't be agents or anything productive, you two are always on this board!!

Damn, get a life, will you!!

LOL!!

Good example of discount downtime, next to retirement what could be anymore boring?

I woke up and had 28 notifications from this topic! lol. Jaber and Rick need their own forum, they can argue with each other all day long. Hell, sometimes they even respond to their own post!

Stick to the topic or leave. Talk about static.

Ha Ha Ha Ha ha Ha Ha Ha!!!

So True, So True!!