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Devon mann, Investing (KWBHG)

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Ambassador
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Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

It is your fiduciary responsibility to do whatever is best for the client... not YOU!  Let that guide you.  

Sep 20, 2016 01:05 AM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

If the home is under contract why in heaven's name would you drop the price? By the way, the primary purpose of representing a seller is to get their home sold, not to gain new buyers. 

Sep 20, 2016 01:30 AM
Rainmaker
679,404
Diana Dahlberg
1 Month Realty - Pleasant Prairie, WI
Real Estate in Kenosha, WI since 1994 262-308-3563

The first thing in real estate is to treat others like you would want to be treated.  If you know the property is priced too high, be straight with the Seller and advise if you take the listing at this price that he must be willing to reduce the price  every few weeks or he (and you) are just wasting your time.  

Sep 20, 2016 01:18 AM
Rainer
45,957
Andy Madrid
Hawaii Coast Realty, LLC - Kailua-Kona, HI
Expertise, Professionalism, and Service

You aren't that far off from the target price where it should sell.  I would take the listing, do your very best for the client.  show the homeowner the comps and continue to guide him.  

Sep 20, 2016 03:07 AM
Rainer
66,409
Kartik Subramaniam
Adhi Schools, LLC - Rancho Cucamonga, CA
Market Analysis--Educational Content, Adhi Schools

I would agree with the others and talk to your broker. They will have more specific information and experience for your market. Depending on how "hot" your market is, being the best house in the neighborhood for 50k more than the closest competition may not be an insurmountable problem. It could be an issue of finding the right buyer for that neighborhood. But if your broker sees a problem, time to shoot straight with the seller. Since you've already talked them down some I would follow the advice some of the others have posted here and consider the "Hey Client, I know we have this listing price but I still think it's too high, we can leave it if you want but be prepared to drop the price every few weeks while you're still making morgtgage payments and struggling to time a move to a new place" argument. Frame it in a conciliatory way and you have a better chance of not offending your client.

Sep 20, 2016 01:59 AM
Ambassador
2,436,099
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Congratulations on your first listing!

Did you have a discussion with the seller about the price point when you signed the listing agreement? If yes, I assume you already discussed the comparables and he would only go down to $700K. So perhaps you could list at the agreed upon price but tell him you'd like to get his agreement to reduce further if there are no offers within a certain amount of time.

The primary goal should be to sell his house - your broker would be able to direct you on the best course of action to get that goal completed.

Sep 20, 2016 01:51 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Devon,

CONGRATULATIONS on a great listing! This is really exciting and will prove extremely educational and beneficial for you.

So far you have done the RIGHT thing. However, knowing how you have prepared the seller for the existing market conditions will prove important.

Sharing an info-graphic such as the one to the left, it becomes clear to a seller that market status changes based on price segmentation.

Such information preconditions the owner to prepare for the strategy the market condition requires and the results on the ground confirm.

Now, at this time it becomes essential for you to understand how this collateral can be leveraged to 'Gain some buyers' to propel your business objectives. The options available to you were established over the dining room table when you discussed the listing agreement and your market plan.

Traditionally, the 'open house' is a tool most agents rely on to advance their business. However, most do a dismal jog advancing their business and a great job spending time and entertaining lookey-loos.

How can you be different?
By understanding an open house must have a purpose to be successful. Without a purpose the agent is practicing 'Accidental real estate.'

There are five purposes for an open house. One of them is, "Get more buyers." So, why not have an open house zeroed in on that purpose.

To do so, you need to know the top three or five question EVERY buyer has on their mind, but will never reveal to you if you ask. So don't ask but set the stage for them to indicate to you what is on their mind.

Be aware, a properly planned open house will be so well attended that you can not facilitate it alone. You need no less than three assistants, one of which is a lender whom you trust NOT to spill the beans to other agents.

In the house, place at strategic locations resources that address the question they have. For example, (does not apply to your situation) a flier or display stating "Move-In for $2,100 a month, NO MONEY DOWN" will be attractive to the shelter seeker or move up buyer. When they pick up that color coded flier, your team will have been coached regarding how to engage this 'self-selecting' buyer.

There is much to learn, and the good news is you learn by doing, not warming a stool in a training room.

Congratulations!

Sep 20, 2016 01:47 AM
Ambassador
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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I think honesty is the best practice here, and being straightfoward with the client is important. As others have suggested I would have a conversation with your broker

Sep 20, 2016 01:28 AM
Rainmaker
4,936,558
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Wow, first guy really had it over price

 

Sep 20, 2016 07:39 AM
Rainmaker
1,502,998
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

If he dropped 150k to be only 50k over the market, you may be able to get reasonable-ish offers if you're in a hot market and the house is truly the best one out there.

I'd let him know that you think it is still somewhat overpriced but you're willing to give it a try but they should be open to reducing it if there isn't any activity/offers w/in 2 weeks.

Sep 20, 2016 03:55 AM
Rainmaker
900,128
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Write into the contract a 30-day review/reduction clause, but speak to your broker first.

Sep 20, 2016 02:44 AM
Rainmaker
911,228
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

$50,000.00 overpriced on a $700,000.00 property is probably workable. Discuss reduction schedule if you don't get any showings in the first 30 days. Markets continually fluctuate.

Sep 20, 2016 02:29 AM
Rainmaker
290,969
Allie Angeloni
Long Realty - Oro Valley, AZ

Major 'Congrats!' on your first Listing!!  If you have a mentor, they can guide you throught this process, and if you do not, then your broker Devon mann.  I would not be asking him to reduce a second time, since he has already gone down 150K.  Hopefully you have had, as part of a previous conversation, comments about a further price reduction, after a period of time, if there are no Offers.  I understand wanting to get potential clients from this, though would totally focus on this Seller, because they are your top priority, and it's truly 'all about him'.  Outside of possibly getting Referrals from this Seller, others in the area/neighborhood will see that you sold this Listing, and that alone, can get you clients.  Now if this area is your niche, then meeting neighbors, if you are planning an Open House is very advantageous - Best of Luck - and have your mentor or broker assist.

Sep 20, 2016 02:28 AM
Rainmaker
5,772,575
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Devon,

I am thinking exactly what Nina Hollander said.  All the best to you.  A

Sep 20, 2016 01:41 AM
Rainmaker
2,182,502
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Does Big Z , T ,R and RPR agree with your thoughts ? If so bomb him with copies of these !

Sep 20, 2016 01:28 AM
Rainmaker
4,882,355
Richard Weeks
Dallas, TX
REALTOR®, Broker

You need to hit the market with the property priced correctly.  An overpriced listing is a liability not an asset.

Sep 20, 2016 01:21 AM
Rainmaker
1,751,129
Mike Cooper, Broker VA,WV
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Overpriced listings are always tough, but I would sit down with your broker and have this discussion. It's always client first, but sometimes you have to walk away from a listing that has no chance to sell. This one sounds like it might be borderline rather than way over the line.

Sep 20, 2016 01:14 AM
Rainmaker
4,572,117
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

It seems you have a lot going on with this question and likely need to get your broker involved.  Good luck.   

Sep 20, 2016 01:05 AM
Rainmaker
544,014
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Yes, it's a seller's market. However, the market will teach some irrationally exuberant sellers that they can't get whatever price they conjure up.

Nov 26, 2017 01:53 PM
Rainmaker
1,622,432
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

It is already a great accomplishment to get 150k price correction. I hope, all went well with this sale. 

Nov 11, 2017 03:20 PM
Rainmaker
318,802
Monique Combs
Royal Shell Real Estate - Bonita Springs, FL
Royal Shell Real Estate - Monique Combs

Run comps for your client when you list and let them know it is over priced. If you can get them to agree, after so many days (15-30) to have a price reduction or a couple (in writing in the listing agreement). this will generate more activity each time you reduce. If they are really stuck on the price, you might just want to move on if it is really overpriced. 

Oct 14, 2016 01:53 AM
Rainmaker
3,416,038
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

SHow them why it is over priced with sold comps. Then even take them to a house or homes so they can see value and why they are over priced

Sep 20, 2016 11:30 PM
Rainmaker
989,652
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Wrong wrong wrong - your job is to sell the house, not use it to get buyers unless you are having an open house

Gotta change your thinking

Sep 20, 2016 11:24 PM
Rainmaker
7,835,694
Roy Kelley
Retired - Gaithersburg, MD

Move on to a motivated seller.

Sep 20, 2016 09:07 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Devon mann - it's a good thing that you are starting your career with a $700K listing.

Work with your broker and some experienced agents in your office to sell it for few weeks - if no showings, ask seller to 'adjust' the price.

Sep 20, 2016 01:40 PM
Rainer
97,816
Carol Wilson
Your $imple Home - Toronto, ON

Hi Devon mann, I suggest you have the conversations with broker and client that others are suggesting, and then turn your mind to the staging.  Does the house call to you?  If you are on the fence about it, feel free to send me some photos or a link and I'll let you know what might make a big difference. (Perhaps I can use the photos in a blog, with permission...)  I'm in Toronto, Canada, so I won't be driving by to have a look, lol!

Sep 20, 2016 12:35 PM
Ambassador
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Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

I've taken many listings that other people thought were overpriced, and they sold.

Sep 20, 2016 12:12 PM
Rainmaker
1,153,794
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Devon, I see where you stated that "we have the best house in the neighborhood" your job is to sell it. Read your listing contract and you'll find that is what you were hired to do at that agreed upon price. Now do it!

Sep 20, 2016 11:28 AM
Ambassador
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Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Keep it where it is.  After 30 days, go for another price reduction.

Sep 20, 2016 09:13 AM
Rainmaker
1,725,996
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Hit him weekly with neighborhood market updates and re-valuations of the listing as others sell. Work him, but do not scramble his brain!

Sep 20, 2016 07:38 AM
Rainmaker
1,239,901
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Here you go. You go with what you got. After 30 days crying wolf.... 100 groups came they thought the price was high.  

Sep 20, 2016 06:39 AM
Ambassador
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Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Well since it is the best on the block maybe it is worth the $50k.

If you are sure that it is not then tell him that you have professional integrity an will not damage his reputation or your by poorly pricing a property.

Insist on the proper price, and point out to him that if it is under priced he will be seeing multiple offers and the price will land where it is supposed to be.

Sep 20, 2016 04:32 AM
Rainmaker
2,781,163
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

You need to connect on this subject between you, him & the market. I am talking intimacy not talking people into things. Go realness as in Real Estate

Sep 20, 2016 03:46 AM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Devon mann You're not doing this seller a service by taking a listing that is overpriced. Since this is your first listing, learn a valuable lesson from this experience.

Sep 20, 2016 02:43 AM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

I suggest you say NO THANK YOU

Sep 20, 2016 02:35 AM
Rainmaker
5,216,387
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Speak with your broker about office policy. How might overpricing effect the advertising done for this listing?

Sep 20, 2016 01:19 AM