“I have some good news – and I have some bad news.”
That was what what an agent in a fellow broker’s office stood up to announce at their weekly meeting.
“I just picked up a new listing.”
And the laughter ensued.
Many of you know why… ’cause you get it. For the rest of you – here’s the reason:
Listings cost time and money – make no mistake. Unless you’re one of these agents who take a listing – stab a sign in the yard – hang a lockbox on the door – and then get back to work prospecting for your next listing… you’re going to be spending precious time and money attempting to sell the property.
Another broker was telling me that the number of listings she is holding is at an all-time high. A couple of years ago, this would be welcome news. Today, however, it is not. It is indicative of a slow resale market.
Many listings that were held by good, responsible agents end up expiring – and turned over to the next agent… who – oddly enough – also cannot sell the property at the price the seller wants.
I get many requests for CMA’s (comparable market analysis) each week… and the sellers, for the most part, don’t like the numbers I give them. So sorry. I am not trying to woo anyone with faulty data or promises. The market is what it is.
And the costs for the agents continue to go up. Look at Russell Shaw’s post regarding Realtor.com. Everyone has their hand in the agent or broker’s pocket – tempting us with the latest method to either acquire new business – or sell our inventory.
So to all you sellers out there – I have some good news and some bad news:
The good news is that if you’re serious about selling your home – it can be done.
The bad news is that it probably won’t be at the price you were hoping for.
.
Richard says:
How funny. What happened to the old saying Listers Last.
October 23, 2007 — 8:24 am
Jeff Brown says:
I’ve been at this long enough to have a little fun when this happens. I just allow the seller to study the comps at their leisure, telling them to call me with their opinion.
I quickly go through the locations/addresses of the comps so there can be no debate — they are real comps.
The longer it takes for them to call me, the better chance they have waved the white flag — and faced reality.
The alternative is for them to look me in the eye and call a pig a horse. And yes, every now and then, someone does their best to convince me that pig is really a new breed of short, pink horse. 🙂
As usual, you’ve nailed it.
October 23, 2007 — 8:52 am
Doug Quance says:
>Richard: I would rather work with a motivated buyer than a less-than-motivated seller, right now.
>Jeff: The trouble is that most sellers believe that their home is better than the comps… and you do run the risk of insulting them when you explain that it’s not.
😆
October 23, 2007 — 9:04 am
Kaye Thomas says:
Welcome to Real Estate 101.. it has always been this way.. When prices are trending upward sellers can’t raise their home price fast enough. On the other hand when prices trend downward snails move faster then sellers in making price adjustments between their “wish price” and the market price.
October 23, 2007 — 9:28 am
Jeanne Breault says:
I have ZERO listings right now, because the ones I had were overpriced so I let them expire, telling the seller the only way I would renew them is with a significant price reduction, a 12-month listing, and staging if needed. Obviously none of my sellers agreed!
Here’s the downside – listings make phone ring! The buyer may or may not be serious, but at minimum it’s a very warm lead!
October 23, 2007 — 9:32 am
Doug Quance says:
>Kaye: Yep – couldn’t agree more. 🙂
>Jeanne: I have heard that from several agents… I can’t say I blame you. The problem is that most of these listings do NOT make the phone ring right now.
October 23, 2007 — 9:36 am
Sean M. Broderick, CCIM says:
Amen, Doug..
Same holds true in commercial.. we also have the saying:
“Buyers are liars, but Sellers are worse”..
October 23, 2007 — 10:30 am
Ken Smith says:
I have argued with agents for years that you don’t need listings to last. Some of those same agents today will not even take on a new listing as “none of them are selling”. IMO it takes a good balance of business if you want to be able to capitalize on any market.
October 23, 2007 — 1:32 pm
Doug Quance says:
>Sean: Aha! Commercial, too, huh? I guess people are people!
😆
>Ken: Hmm… interesting. It’s nice to know I’m not the only one who feels that way!
October 23, 2007 — 3:01 pm
Chris says:
It all comes down to motivation. What are the motives of the sellers? Are they going to lose the house to the bank? New job? Do they have to move by a certain date?
If there motivation is we need to get XX price, or we are not selling, and XX price is above market, why take the listing? I wouldn’t.
Listings are taken for two reasons:
To sell.
To get buyers.
Know your market, know your comps, show the sellers what is going on. The market is trending down so price listings a bit below market. If the sellers won’t do this, don’t take the listing.
Lucky for us the coast of CT is still pretty strong, we are not getting hit anywhere near as hard as FL, CA, or Arizona.
Buyers can be nuts to these days, they love to offer $100k below asking.
As for me I’m thinking of getting out of the residential sales side and into the commercial, investment, building side. I rather build stuff.
October 23, 2007 — 8:19 pm
Robert says:
-The number of people losing their homes in metropolitan Phoenix is at its highest point since the real-estate recession of 1990, primarily a result of subprime loans. Rates on those adjustable loans that thousands of homeowners took out during the housing boom are climbing. Many can’t make the higher payments or refinance into a better loan. Defaults on subprime loans nationally are causing an implosion among lenders that isn’t over.
Arizona is second only to Nevada for subprime loans, and the mortgage industry is bleeding billions of dollars from losses on those types of loans. Interest rates on the biggest block of subprime adjustable-rate mortgages are set to climb by the end of the year, prompting market watchers to predict the largest jump in foreclosures to happen in early 2008.-
http://www.azcentral.com/arizonarepublic/news/articles/1021bad-loans1021.html
October 23, 2007 — 8:37 pm
Heather says:
Chris & Jeanne, you’ve both nailed it. I’ve developed a tougher hide & more brusque manner this year than I thought possible. Fired more sellers than I care to count, and never looked back. The only listings making my phone ring are priced well under market. The others? Just a drain on my marketing budget. 0% of nothing is still nothing.
October 23, 2007 — 10:05 pm
Doug Quance says:
>Chris: Agreed. And I can understand the desire to leave residential. 🙂
>Robert: The problem shouldn’t be laid squarely on subprime loans. It should be spread amongst the stupid buyers and overzealous appraisers as well. No one held a gun against their collective heads to get a $400K home on a $50K annual salary.
>Heather: You exhibit the traits of a seasoned professional. 😆
October 24, 2007 — 3:07 am
Mike Taylor says:
Great post Doug. I couldn’t agree more, I don’t even go after listings anymore unless they fall into my lap. Even then I take them reluctantly, knowing it will only cost me money and probably strain the relationship I have already built with this client. “List to last” is not true today.
October 24, 2007 — 5:21 am