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I have a client who owns a mult-mil property.
The short-version of this story is that the owner put a price-tag on it that the owner thinks it should sell for.
That price was based on a number that the owner had gotten from a professional appraisal. I was originally told (I thought) that this was done last fall. After further and recent questioning, I find out that it was appraised by a professional at the height of the market...
I am running the comps and seeing that the homes in this area are selling at .80-.90 below town appraisal, and that this is priced almost +200 town appraisal...
I am approaching a talk with him about #s, and he is standing firm that I can show the #s, but that he will never reduce.
It is a fabulous property, but this approach just won't work for anything; getting it shown, offers, and if it comes time, negotiations...
I understand that a seller can ask anything he/she wants, but where I am getting concerned, is about the time, money and effort that has been put into this.
I guess in short, I am wondering if I stay with the effort, or just walk away. I watch other agents wait a seller out, but this property needs constant attention, and I am not sure what I should do.
I just don't know what to do.
Any advice from fellow agents? Just agents, please.
If the marketing plan has helped you pick up some solid buyers I would stick with it. If not, then I would move on especially if the maintenance cuts into time that could be better used making $. I would also factor in my current inventory - when ones inventory gets too high some listings you can't afford to take, as the realistic sellers tend to get less attention since it's often the unrealistic ones that call and bug 5 times a day which can suck up ones enthusiasm and time which hurts the sellers that are being the most fair to you.
I have a client who owns a mult-mil property.
The short-version of this story is that the owner put a price-tag on it that the owner thinks it should sell for.
That price was based on a number that the owner had gotten from a professional appraisal. I was originally told (I thought) that this was done last fall. After further and recent questioning, I find out that it was appraised by a professional at the height of the market...
I am running the comps and seeing that the homes in this area are selling at .80-.90 below town appraisal, and that this is priced almost +200 town appraisal...
I am approaching a talk with him about #s, and he is standing firm that I can show the #s, but that he will never reduce.
It is a fabulous property, but this approach just won't work for anything; getting it shown, offers, and if it comes time, negotiations...
I understand that a seller can ask anything he/she wants, but where I am getting concerned, is about the time, money and effort that has been put into this.
I guess in short, I am wondering if I stay with the effort, or just walk away. I watch other agents wait a seller out, but this property needs constant attention, and I am not sure what I should do.
I just don't know what to do.
Any advice from fellow agents? Just agents, please.
I agree with Eric in that IF you are getting clients off the marketing, then you're seeing a benefit from keeping the listing, as you're obtaining more business/potential good buyers for other properties. However, if this guy is high maintenance and 10/1 he will be because clients this unrealistic, even when presented with b/w evidence that their property is over priced, tend to be whiny and high maintenance about 'why oh why aren't you doing a better job selling my house' AND if you are not receiving any benefits from the marketing cut him loose.
You're wasting time better spent on other clients, securing additional inventory, buyers etc. etc. etc. It's always a hard decision, but I've 'fired' clients as well because they simply would not listen, we were wasting way too much time on a property that would never sell plus then have them 'blame' us because their overpriced property was getting zero interest. Good luck - I know this is not an easy decision to make.
Question is... can the property appraise now for anyone that is going to finance? If not, then what is the point?
Exactly, and based on my data, I feel the answer is no.
At one point, I thought this would hold for a bank-appraisal, but that was when I was told that the owner had it professionally appraised, last fall, now to find out that it was at the height of the market.
And maybe there would be hope for that if a savy buyer and his/her agent could look at the comps and negotiate down, but right now, one of the issues is that the owner is literally saying that the owner would not take a penny less than asking price... this is frustrating!
I agree with Eric in that IF you are getting clients off the marketing, then you're seeing a benefit from keeping the listing, as you're obtaining more business/potential good buyers for other properties. However, if this guy is high maintenance and 10/1 he will be because clients this unrealistic, even when presented with b/w evidence that their property is over priced, tend to be whiny and high maintenance about 'why oh why aren't you doing a better job selling my house' AND if you are not receiving any benefits from the marketing cut him loose.
You're wasting time better spent on other clients, securing additional inventory, buyers etc. etc. etc. It's always a hard decision, but I've 'fired' clients as well because they simply would not listen, we were wasting way too much time on a property that would never sell plus then have them 'blame' us because their overpriced property was getting zero interest. Good luck - I know this is not an easy decision to make.
I have had about 4-5 open houses this spring, and with minimal traffic flow. Lots of nosy neighbors, but not many serious buyers...
I have had about 4-5 open houses this spring, and with minimal traffic flow. Lots of nosy neighbors, but not many serious buyers...
Well then I think you just answered your own question. Cut him loose and focus on other clients, utilize any advertising dollars you spent on his listing to promote your areas of expertise to pull in 'real' buyers and/or promote realistic priced inventory and let someone else waste their time with him.
You'd be better of spending your time volunteering and meeting new people doing some good. You'd spend less money and probably get more benefit than keeping this listing.
I had someone who I am doing other work for ask me to list his house. I said, sure, how much are you looking for? He told me. I said..well, let's get an appraisal. I was there with the appraiser listening to what the seller was telling him, pointing out, etc. The appraisal came in. The seller was furious that it came in where it was he just KNEW his house was worth more because of how it was built. He asked me to take the listing at over $165K more. I told him no, give it to the agent that lives in your neighborhood...I don't have that kind of clientel. He said..what does that mean, that kind of clientel?
I said...well, I just don't have people that are foolish enough to over pay for a house.
Didn't take the listing, still doing other work for him and he would gladly refer people to me. Just be honest and move on. You know it's available, if you end up with a buyer that just might over pay, bring 'em to the property.
I agree with all the other posters but have one thought to share. When you know you can handle the "loss" of a possible client, after you have given them all the data and information possible, and they're still stubbornly hanging on to their unrealistic price, ask them this. "Do you want an agent that will not only work hard for you, but will tell you the truth even if it's a somewhat unpleasant "truth"? Or, do you want an agent that will just agree with anything you have to say, or will say whatever they think will pacify you for the moment?" Then, the ball is clearly in their court and it is their decision. I have had these types of persons both in sales and property management. Most will seriously reconsider when you put it that way, and if they are basically intelligent they see the value of what I said. We may argue in a civil manner, so to speak, but the bottom line is they are asking us for our professonal opinions and experience to help them. If that person just wants some yes-man to browbeat, count me out. This is not a good use of your time. Agreeing with this person is just setting yourself up for unnecessary stress.
I always listen to what they say, and even use some of their suggestions if it makes them happy. But if it doesn't work pretty soon (like they want to re-word the ad copy), I tell them, "Okay we tried that and it isn't working" and I just go back to what I feel is correct.
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