Tony and Suzanne Marriott's Phoenix Arizona Real Estate Blog

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Fantasy Island - Revisited!

It seems that many Sellers are living on Fantasy Island.  What's more - they have managed to convince supposedly "professional" real estate agents to move there with them! (Click the graphic below for video)

 

 

I continue to be amazed by the number of overpriced listings - and I mean overpriced to the point where there is absolutely no justification or reason for the list price except that's what the Seller wanted to list it for.  

 

These overpriced listings either Expire, Cancel or experience dramatic price reductions.

 

It takes two - perhaps three - to create these listings.  The Owner / Seller, the Listing Agent, and the Listing Broker who blesses it.

 

Why would the three of them do such a thing? 

 

 

Is it a "Hail Mary" football pass hoping that lightning will strike? 

 

Is it that the Listing Agent will take a listing at any price just to have inventory to hold Open Houses in search of unrepresented Buyers or Sellers?

 

In this market - make that in ANY market - we have a fiduciary responsibility to our clients.  I don't see how participating in their pricing fantasy is fulfilling that responsibility to them.  Perhaps I'm overlooking something when I'm looking for the "Win-Win".

 

It doesn't matter what price the Seller "wants" - the market will bear what the market will bear.

 

It doesn't matter what price the Seller "needs" - the market will bear what the market will bear.

 

If the Seller MUST sell, they "should" receive Market Price for their property IF it has been offered at an appropriate List Price.

 

On the HUD1 - or today's post TRID equivalent -  it will either show an amount as "proceeds to Seller" or "amount due from Seller".  If the Seller doesn't have the "amount due from Seller" that's called (at best) a Short Sale and requires lender cooperation. 

 

Win - Win = Priced for the market, property sells, Seller and Broker meet objective of getting the property sold.

 

 

 

Lose - Lose = Priced at Fantasy Island pricing, property fails to sell, Seller disgruntled, Broker out of pocket time, money and effort.  A waste. 

 

Let some other "professional" buy the listing - and get on with taking saleable listings priced realistically for the market. 

 

Am I missing something??

 

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All images purchased and  licensed from Shutterstock , shared from YouTube, sourced from Vectortoons, or were taken by the author unless otherwise noted.

About the Authors - Updated 2018

If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with the BVO Luxury Group @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.

Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!

Tony Marriott - Chief Operating Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Suzanne Marriott - Chief Learning Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Associate Brokers, REALTORS
BVO Luxury Group
Keller Williams Arizona Realty

Comments

Tony and Suzanne

We are still seeing this here, as well. You can always tell, because the well-priced homes are selling quickly in our seller's market, and those that languish tell the story of an over-zealous seller and an agent willing to go along with it.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude (Solutions Real Estate ) over 2 years ago

There are some areas in San Diego (Encinitas) that every home is listed high. The worst part is all of the neighbors start thinking, "If they get that for their house, I am selling the next day". Everyone knows they are overpriced they are just pricing high to see what they can get, but they are hurting the whole ares in the long run.

Posted by Matt Brady, Lending With Competence And Character (Skyline Home Loans) over 2 years ago

I just do not get it. I wrote about this week as many sellers go with the agent who give sthem the highest price only to see their home go unsold 6 months later Tony and Suzanne Marriott, Associate Brokers 

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) over 2 years ago

You know, I used to think that way.  I recommended realistic pricing for sellers... and saw them list with other agents over and over and over again, at inflated prices.

They would sit for weeks and weeks... they would take reductions... and eventually sell for a price similar to the one I recommended.

So, the agent who recommended the too-high price, is the one who got the sale.  And now and then, some idiot would come in an buy the property at the too-high price.

Pricing is a skill, but knowing when to flex is also a skill.

Posted by Alan May, Helping you find your way home. (Coldwell Banker Residential) over 2 years ago

Yes, you are missing something. You are missing the hundreds of buyer calls that turn into sold transactions. You are missing the eventual reconsideration of the seller to lower the price that will turn into an actual sale down the road. You are missing the fact that people driving by that sign every single day see your name and recognize it. You are missing the fact that even on Fantasy Island, sometimes a buyer will do whatever it takes to buy that home.

Posted by Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents, Put 40 years of experience to work for you (Lyon Real Estate) over 2 years ago

It's interesting that the brokers actually agree with this method - take the listing and get the price reduction - of course that seldom works!

Posted by Jennifer Mackay, Your Bay County Florida Realtor 850.774.6582 (Counts Real Estate Group, Inc.) over 2 years ago

You got it Jeff Dowler CRS - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Agreed Ronald Gombach - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

A vicious cycle Matt Brady that does nobody any good... - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Unfortunately agree Scott Godzyk - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

I suggest to Sellers that tell me they plan to list elsewhere due to price - to ask that agent if they will agree to let the Seller cancel the listing if the Agent EVER suggest a price reduction.  Why spend money, time and effort on a doomed venture Alan May .  Yes - some may sell at some point in the future - with price reductions - but the expired and cancelled stats in the MLS make it very clear that would be the exception - not the rule...

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Disagree Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents - you provide a list of reasons of how it can benefit the agent - but not a single one that benefits the Seller.  The objective is to get the home SOLD!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Agreed Jennifer Mackay - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Sellers chance to be the star of the Real Estate show and overpricing is their own encore...This is a business not a show. However, he who has the gold...still rules

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) over 2 years ago

Many agents will say "If I don't take that overpriced listing, someone else will." As Alan May said, sometimes you receive a gift in the form of a buyer who actually buys the property.   I'm not saying this is a good way to run your business - but every now and then you take it and run with it.  

However, when an entire neighborhood, city, or even state, has overpriced listings and homes aren't moving, that's a huge problem with dire consequences.

Posted by Margaret Goss, Chicago's North Shore & Winnetka Real Estate (Baird & Warner Real Estate) over 2 years ago

Tony and Suzanne, our market is so wacky that I'll walk into something thinking it is ridiculously overpriced, and then the listing agent smugly tells me they have three offers registered!  Go figure?  

And we are seeing serious underpricing here, too.  It's so important for us to do our homework before recommending a price, and I think some agents just stick their finger in the air. 

Posted by Patricia Kennedy, Home in the Capital (RLAH Real Estate) over 2 years ago

That has always been my argument -- that we have a fiduciary responsibility to tell our clients the truth -- when we take on grossly overpriced listings against all odds in most markets, we are at least tacitly telling our clients that their house is worth that much. We all know there's no perfect price for any home... but we also know when we are getting close to Fantasy Island.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage | Charlotte, NC) over 2 years ago

A fiduciary duty is "obedience" to the principal.  If the listing agent takes the listing and the seller instructs the agent to list at that price, the listing agent has two options . . . obey, or move on and let the next listing agent take up residence in Fantasy Island.  

Posted by Carla Muss-Jacobs, RETIRED (RETIRED / State License is Inactive) over 2 years ago

I am not a fan of taking over-priced listings. I understand the benefit to the agent ... I see no benefit to the sellers.  

Posted by Kathleen Daniels, San Jose Homes for Sale-Probate & Trust Specialist (KD Realty - 408.972.1822) over 2 years ago

Tony I agree. There are far too many overpriced listings and especially in Scottsdale where they sit on the market and then get re-listed 6 months to a year later with yet another agent.  That old saying 'I list to sell" applies! Not I list to list....:)

Posted by Anna Banana Kruchten CRB, CRS 602-380-4886, Arizona's Top Banana! (Phoenix Property Shoppe) over 2 years ago

Tony and Suzanne Marriott, Associate Brokers fantasy island - it is. However, there is another school of thought - list to last.

I personally do not like people to live on fantasy island. However, if I don't, someone else will.

Posted by Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners) over 2 years ago

Unfortunately, I think many Realtors (and sellers) are listening to the inflated sale info being put out by Washington D.C. (District of Corruption) and their right hand man (the NAR). Sales info being put out is phony and people are believing it.

Of course in our area, there has always been the one excuse for agents taking over-priced listings. They are hoping for a "low flying mallard" coming here from California!

Posted by Jeff Getman, Realty Executives (Realty Executives of Ravalli County) over 2 years ago

I love the way you put that.  It's just a fact the market will bear what it will bear. We aren't helping anyone if we don't tell them that.  

Posted by Jackie Adams, Jackie Adams over 2 years ago

Sellers who demand a listing price from professionals don't list with them because professionals are fearless and will walk away from such sellers, so, you haven't missed anything.

Imagine hiring a professional regardless of his profession who is scared or afraid, what negotiating skills would he use and if he can't persuade the seller to sell at the market, how will he get a buyer to buy at a price substantially above the market? 

When I see a price reduction quickly from a listing, that tells me a lot about the agent and the agency. it also tells me that they would do almost anything to sell the property and more times than not, the eventual buyer's offer will be less than the existing market price.

When a property is priced to SELL, it will sell quickly depending on the L3 factor and other important elements yet, a professional will know how to frame and close the sale. Always be a PRO.

Posted by Kimo Jarrett, Pro Lifestyle Solutions (WikiWiki Realty) over 2 years ago

I have a limit that I set when I present the seller with my professional opinion of value.  If they are within a small margin I will take the listing.  If not, I wish them well and let them know they need to list with an agent who really needs a listing.  

Posted by Diana Dahlberg, Real Estate in Kenosha, WI since 1994 262-308-3563 (1 Month Realty) over 2 years ago

It is a waste of my time and money to take an over priced listing. Advertising isn't cheap and how else can we sell it without either time and lots of money involved.  

Posted by Rose Mary Justice, Synergy Realty Pros (Synergy Realty Pros) over 2 years ago

Not sure if we are on the same page or not Richie Alan Naggar -  "He who has the gold...still rules"  If the Seller thinks they will "rule" by overpricing their listing - it won't be with us!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

We made a decision to just not do it Margaret Goss years ago - and it has stood us in good stead.

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

There are always exceptions to the rule Patricia Kennedy - which is why if the Seller is insistent we offer them the option of paying for a Pre-Listing Appraisal, which we will reimburse them for at Close of Escrow if they list, sell and close using us as the Listing Broker...

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Agreed Nina Hollander and - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

It never gets that far with us Carla Muss-Jacobs, Principal Broker/Owner - if the owner is unreasonable - we don't take the listing.  Although - you raise a good point - what if the Owner after you have taken and activated the listing and spent money on marketing the home instructs you to raise the price?  I feel an additional clause to our Listing Agreement Addendum coming on...!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Agreed Kathleen Daniels - no argument here - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Good to hear from you Anna Banana Kruchten !  That's what I'm seeing too...

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Then let them Praful Thakkar - and focus on the reasonable Sellers.

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Thanks for the observations Jeff Getman - very much appreciated and - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Agreed Jackie Adams - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

It's kind of like telling a surgeon how to operate, isn't it Kimo Jarrett ! - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Right on target Diana Dahlberg - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Very much agree Rose Mary Justice - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Everytime an agent tells me they are stressed I ask them how many overpriced listings they have.  The stress levels usually are very connected!

Posted by Michael Layton, Michael Layton 7604085300 (Big Block Realty) over 2 years ago

I think you covered it. The market will bear what the market will bear. 

Posted by Marte Cliff, Your real estate writer (Marte Cliff Copywriting) over 2 years ago

From this day forward I will only refer to over priced listings as Fantasy Island Listings.

Posted by John Nash, Real Estate sales and investing (Solutions Real Estate) over 2 years ago

Great post & it is indeed a conspiracy. Depending on your market, there is always someone grasping at straws.

Posted by Lyn Sims, Schaumburg IL Real Estate (RE/MAX Suburban) over 2 years ago

Good point Michael Layton - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Agreed Marte Cliff - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

I think that's a great idea John Nash - I will too!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Unfortunately Lyn Sims - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

We've sold overpriced listings at list price. But mostly we document they are overpriced and take good care of them. Eventually they come down and sell. Send them to us. Only the last realtor to list the home makes the money. And no, I'm never stressed...  ;)

Posted by The Derrick Team - Indy Metro Realtors, Your Pet Friendly Realtors (Carpenter Realtors) over 2 years ago

What is the benefit to the Seller of an overpriced listing The Derrick Team - Indy Metro Realtors ?  Carrying costs for the months it doesn't sell.  I'm well aware of the "benefits" to the listing agent...

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Helping a client who needs to sell their home, eventually proving we were correct, us selling the home and not another agent. Pretty simple really. And in our market homes are tending to sell for more than you think. I just receintly saw a home sell for double what it was worth (cash), and the buyer bulldozed the home to build another. And having a listing is better than not. Everyone has their on way of doing business and we do quite well in our market.

Posted by The Derrick Team - Indy Metro Realtors, Your Pet Friendly Realtors (Carpenter Realtors) over 2 years ago

Good morning Tony and Suzanne, I've walked out of listing appointments knowing I will not get the listing. For me, there's no point in marketing a home that's grossly overpriced. Every market is different though, I'm sure many homes sell well over list price in some parts of the country but not in my area.

Posted by Beth Atalay, Cam Realty of Clermont FL (Cam Realty and Property Management) over 2 years ago

I saw a lot of benefits to the agent in your response The Derrick Team - Indy Metro Realtors - but nothing that really answers "What is the benefit to the Seller of an overpriced listing"

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

Agreed Patrick Willard - thanks for stopping by with a comment...

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

We're on the same page Beth Atalay - thanks for stopping by with a comment!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

There is a listing about 1 block from me. It has been on the market over 20 months and 2 agents. While the water bill can be over $1500 a month in the summer. The plush yard, big pool may not be a problem.  They raised the price by another 100K indicating they are in hurry.  I did not want to go inside finding out an agent brag this is a new listing buy now.  I am in an area where just about any crap gets sold in 1 week over asking price.  My question is what is on seller mind. Do you want to sell or not.....

Posted by Sam Shueh, mba, cdpe, reopro, pe ( (408) 425-1601) over 2 years ago

Thanks for your comment Sam Shueh - always good to hear from you!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 2 years ago

and another one

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) almost 2 years ago

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