listing agents, what if clients insist on unreasonable high prices?

Question

For those seller's agens, what would you do if the seller insisted on a unreasonably high listing price, and were not much negotiable on the sale price?

Would you just put the list on MLS, and then forget about it? Or this challenge will force you to spend more time and effort on advertising and searching for potential customers?

Any experience or suggestion will be appreciated.

Karen Margrave · Answer

When I worked as an agent, I would ask people, "do you want to list your house, or sell it?" The market supports a price of x amount of $. Listing slightly higher, knowing everyone submits offers under asking is ok, leaving a little negotiating room. However; if it's completely out of whack, it makes you look bad as an agent, the house sits and looks unsellable. Then, the sellers find another agent, blame you because it didn't sell, and list at the correct price with the new agent. The new agent looks good, and you are out your time,expenses and commission. So, why not price it to sell to begin with,or walk away?

Bill Gulley · Answer

First of all, I didn't take such listings. I have heard excuses like my daughter is going to college and we must payoff our car.....and I tell them your house is not responsuble in sending your daughter to college nor did it buy your car. I also explain that there will be new agents who might list a property for 4 basic reasons: 1. To win the newbie listing award at the next sales meeting. 2. To have a picture to advertis to get their name in Homes Magazine. 3. To generate phone calls so they can show other homes. 4. For practice If a property is not listed to the current market, it's not really for sale, it's not an offer it's an unrealistic desire and good agents don't get paid on desires.

J Scott · Answer

Generally, the actual listing is free if the house doesn't sell (at least with our MLS). But, good real estate agents don't just put houses on the MLS and then forget about them. There may be real advertising costs -- newspaper, magazine, website -- or there may be some concerted effort -- open houses, showings, etc -- or there may be time spent -- listing on Craigslist, calling other agents, etc. All-in-all, the money, time and effort spent by good agents can be significant, so if the seller is truly unwilling to consider reasonable offers, the agent would be losing out. That said, an agent could tell the seller all this stuff and then just offer to list on the MLS and do nothing else. But, if a seller just wanted that, they could pay a lot less for a flat-fee listing brokerage to do it.

Scott Hubbard · Answer

First, if your local market is in a buyer's market, like most, then you should help educate the seller as to what this exactly means. Second, find out WHY they insist on the high sales price. Perhaps it is because that is par for what the owe on their mortgage. Third, do they need to sell. Depending on the answers to the above, you still might be able to offer them a solution. Motivated and uninformed sellers are much more easily convinced to sell at a discount than uninformed and unmotivated. Good Luck!

J Scott · Answer

I'm not a listing agent, but most agents I know would turn down the listing and wish the seller good luck...

Adrian Williams · Answer

Overpriced Listings Are Evil & The Biggest Waste Of Time !!! A.D

Joel Owens · Answer

I work on the commercial side but it's still similar. It costs money on the commercial side (A LOT OF MONEY) to market properties correctly. I wouldn't list a property just to list it. My rep would be trashed trying to sell overpriced junk.I wouldn't get many buyer calls as there is no deal to call about. I would rather have 10 listings that I get priced right that I pour my heart and soul into to get sold then 20 listings and 15 are trash and the sellers constantly call and try to blame you. If it's an awesome property and the seller motivation is strong I will list a little higher but with instant reductions built in with a fast time frame.Sometimes the seller just needs that third party data from buyers showing (it's overpriced) before they will believe you. I am very selective about what I take as a listing. Sellers sometimes ask well why didn't you show my property before?? I say it's simple.I am a broker specializing in listing properties for sale.I only put time into properties where a seller gives me the exclusive right to market their property for sale. I can only take so many listings at once so I am selective about what I take.Since commercial commissions are much larger I do very well with this strategy. Hope it helps. To all brokers/agents out there remember (you are valuable,you are not to be used and abused by potential clients). If you don't believe in yourself then how do you expect others to?? If you don't feel you are worthy then take the training and put in the hard work to make yourself an asset.

Karen Margrave · Answer

What did you end up doing?

Mat Lewczenko · Answer

Those who walk away have the power, ultimately. If they are unreasonable with price, thank them, offer them some tips on how to sell on thier own, walk away and then....follow up - systematically. I call all my FSBO's on Monday mornings, ask them "how their showings went?" "oh you didn't have any? hmm, why is that?" They usually just say - "well you know, we are in the worst market ever!" "hmm, I completely understand, I have a house similar to yours I just listed and we had 3 showing this week.Best of luck to you!" Then I call everyweek and check in - until they list with someone else or tell me to never ever call them again. Usually, they get tired of trying to do it themselves and ask you to list it. At this point you can get them to see that the market really is what it is. Best of luck.

Michael Stole · Answer

Thanks to J, Financexaminer, and Sean. You made great replies. But it does not hurt to make a listing for that client, right? Making a list is not much work. I am not an agent, so I don't know if an agent pays any fee to his/her broker or to MLS for listing a house? If the agent gets lucky, the listing may still attract some motivated buyers who just LOVE the house, the agent can eventually sell the property without doing much work.