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A few things. First, taking an overpriced listing doesn't mean the agent is a lousy agent. We've all done it. Sometimes we are wrong about our pricing,.
You just admitted that you couldn't price correctly. A good agent knows what price to list at. I repeat, strike #1.
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Originally Posted by Bill Keegan
sometimes we take it thinking that with the proper marketing we can get peolple in to see it who might then make a low offer and at least get the negotiations started. .
This shows you are lousy at presenting the facts to the potential seller. If you were believable up front, the seller would've left you in control. When you cannot list at the range you reallly want, then you did a lousy job convincing the seller. If you cannot convince, you shouldn't list then because you are wasting everyone's time.
As a buyer, if I know the asking price is just a "Suggestion", then I'm much more likely to throw out an offer that suits me. If I interpret the asking price as "firm", then I'd just walk (assuming the firm price was too high). So in that sense, this tactic could lead to offers when otherwise there would be none. They might be lowball offers - but then again, maybe the sellers agent could use those lowball offers to manipulate the seller, and get the place sold in the long run?
Assuming it is lawful, it seems like a desperate tactic that should only be used in desperate situations.
I wouldn't expect any more of them from that point than I would of a stereotypical used car salesman.
@ Tungsten: I don't know who you expect the listing agent to represent, but if you're a buyer, it's not you. Go get your own agent if you want unbiased opinions. When you are talking to the seller's agent, you should expect that agent to effectively be an extension of the seller. Believing otherwise is naive.
@ Bill: I don't think the answer to the question could be any clearer. The fact is that the listing agent's opinion about what the listing price should be is just that - an opinion. The "correct" price is not an objectively determinable fact, so agents should have no concern about nondisclosure of a fact.
A listing agent's opinion about any aspect of the house is completely irrelevant (if you think the house is ugly, do you feel an obligation to tell potential buyers?), and if an agent who has low opinions of the house doesn't know how to gracefully deflect inquiries about their opinions, they are a lousy agent. Disclosing your opinion that is contrary to the interests of the seller is a breach of fiduciary duty.
@ Tungsten: I don't know who you expect the listing agent to represent, but if you're a buyer, it's not you. Go get your own agent if you want unbiased opinions. When you are talking to the seller's agent, you should expect that agent to effectively be an extension of the seller. Believing otherwise is naive.
Right. I wasn't saying that I expect the seller's agent to be honest to prospective buyers, just saying that I like when they are--and they're likely to have much better success with me when they seem honest (although really, who will know other than the agent in many cases), and beyond that I was clarifying what I'm referring to by honest.
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if an agent who has low opinions of the house doesn't know how to gracefully deflect inquiries about their opinions, they are a lousy agent.
On the other hand, I tend to get annoyed at "deflected questions", so that's not always the best tactic, either . . . but it depends on the person you're dealing with.
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Disclosing your opinion that is contrary to the interests of the seller is a breach of fiduciary duty.
That could be, but I'm also pointing out that that can be incompatible with being honest.
Right. I wasn't saying that I expect the seller's agent to be honest to prospective buyers, just saying that I like when they are--and they're likely to have much better success with me when they seem honest (although really, who will know other than the agent in many cases), and beyond that I was clarifying what I'm referring to by honest. On the other hand, I tend to get annoyed at "deflected questions", so that's not always the best tactic, either . . . but it depends on the person you're dealing with.That could be, but I'm also pointing out that that can be incompatible with being honest.
I guess I'm very different than you are. As a buyer, if I see a seller's agent stabbing their client in the back, I am much less likely to put any trust or faith in what that agent says or does.
You just admitted that you couldn't price correctly. A good agent knows what price to list at. I repeat, strike #1.
This shows you are lousy at presenting the facts to the potential seller. If you were believable up front, the seller would've left you in control. When you cannot list at the range you reallly want, then you did a lousy job convincing the seller. If you cannot convince, you shouldn't list then because you are wasting everyone's time.
No, it shows that, despite what an agent says to the seller, and what facts are presented, the seller will often insist on a certain price. Is it a mistake on the part of the agent to take that listing? Sometimes. It's a business decision the agent makes. Is evvery decision the right one? No. Find me ANYONE who never makes decisions that, in retrospect, are not great decisions, and I'll show you a liar.
But that's not the point of this thread anyway. A question was asked. Thanks for stating yrou opinion, irelevant as it is to the question. Would you care to answer the question now?
This is one of the reasons I don't list homes that are grossly overpriced because in the end when it doesn't sell the homeowner will make it my fault. In my office,when we as individual agents have questions about the listing price of a home-either because it is a unique piece or the seller wants it listed at a price that the comps for the area does not support, we employ the "marketing team" approach and have at least 3 other agents from our office give their opinion about the pricing. That is as far as I tend to go in trying to persuade the seller to reconsider the sale price. For a number of reasons I don't like listing property with a plan to reduce the price every 2-3 weeks to get it to the correct pricepoint.
We all know that our fiduciary responsibility is to our client. If that client is the seller then we cannot betray that trust by saying anything that undermines the seller's asking price.
this talking about an agent taking an overpriced listing, and whether they should or shouldn't.... brings to mind that I am a professional but I cannot see the future. Believe it or not, strange things have happened. I cannot say with absolute certainty what a house will sell for. I can tell you what my professional OPINION is.... but that is all.
Sorry, but I do not set the price and if the owner and I have an agreement on what we will do to price, it may be the best way to move forward. again, ultimately it is my opinion.
And just like I won't tell a buyer my clients house is overpriced (or underpriced). That is an opinion!!! it is worth what YOU (or any other buyer) are wiling to pay.
Sorry tungsten, but just becuase you think it is overpriced, and I don't agree with you... you call me dishonest? Not sure I agree with you.... : )
shelly
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