Realtors Only Please: Are there more advantages or disavantages of accepting an over-priced listing?

Question

Details please.

Answer 1

Several factors determine that... Location of a great curb appeal house can get you several leads on buyers and if you canvas the neighborhood you can certainly pull other listings from it.
On the other hand the aggrivation that you may have to put up with from an anxious seller who just must get their price and want to sell yesterday may be without a doubt a serious disadvantage that out weighs the advantages.
I work in Ocala Florida and at this point in a buyers market I would much rather have realistically priced listings than overpriced and then have to reduce the price later.
We went thru an incredible sellers market in "04 & "05 and I would over price a bit just because we could and we'd get it. Now that was fun!
I guess what I am saying is that there had better be some great benefits in there for you... don't cave to demanding sellers, tell them the truth and if they don't want to hear it then the best choice is to say thank you for your time and walk away!

Answer 2

Greg, I will take a moderately overpriced listing with the agreement that we will assess price again in 30 days.

For those with a dream price, I let them go.

You can spend alot of time and effort trying to market an overpriced listing, only to lower and lower the price, making buyers watching this wonder what is wrong with the property.

Sellers that have a dream price will not accept a reasonable offer, and all your effort is for nothing.

If you need something to market, you could take it to get your name out there (been there, done that - not going there again) but you are spending your money trying to sell a property that is not something you can sell.

Answer 3

When dealing with an overpriced listing don't think in terms of being an agent or Realtor. You have to remember they are dealing with emotions so you have to put yourself in their place. Once you do this it is an advantage to take the listing.

Of course there are disadvantages, but if everyone chose not to take overprices listings then some agents and Realtors would be out of business.

Think about it!

Answer 4

I'm not at all fond of accepting an overpriced listing, and generally will not accept one with out agreement to regularly and consistently reduce the price to something more reasonable as time goes by. If a seller insists that they will not drop below a specified price (which is still out of line), I tell them to find a different listing agent.

Answer 5

TAKE THE LISTING!!!!!! Listings lead to phone calls, phone calls lead to leads, leads lead to buyers, buyers lead to escrows.

Buyers refer you other buyers, and on and on it goes.

The whole idea of taking a listing is so that you can touch others that you would not have the opportunity to touch.

If the sellers insist that you overprice a property, say to them that you will, but let them know that it will not attract an offer. In fact, you should let them know that since you don't stand a chance at selling at the high price, that in exchange for your honesty, you would like a chance to reach other clients thru your marketing efforts for their house.

I have found that if you explain the reality of things to unrealistic sellers such as this, and they list with you, it will often result in other clients that you would have otherwise never met.

I had one client, who stubbornly insisted that their hideous house was worth $20,000 more than it really was. I took the listing, told them it was overpriced, did not sell their house, but attracted another seller in the neighborhood that DID list and sell with me, and I attracted a buyer thru that listing that purchased a different house with me....... In my eyes, that was MISSION ACCOMPLISHED!

I wish you success.

Answer 6

Overpriced listings don't bother me, because the appraisal will usually correct it when it comes in at market. Homes in my market area simply will not sell for more than appraised value and buyers absolutely refuse to pay the difference out-of-pocket.

I take my clients to look at all homes in a particular area, and if one is over-priced, I pull the comps, and send them in with the offer.

When they see they are thousands, sometimes tens of thousands, off from the next highest-priced home....that usually snaps them back to reality.

Answer 7

I like my "ambitiously optimistic" clients. They generate buyer leads for me.

Regards

Answer 8

Way more disadvantages but there is one advantage...they will eventually come down on price if there are no offers or low-ball offers so you can wait them out. (trouble is, they expect you to advertise it)