Tony and Suzanne Marriott's Phoenix Arizona Real Estate Blog

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Page 17 - Don't Do It - You Won't Regret It!!

Earlier this month I wrote: Page 16 - Another Ping!!!
 

We attended the listing appointment described in that post.  

 

The property had languished on the market for almost a year.

 

 

When it expired, it was priced at $740K.

 

Showings had been sporadic.

 

No offers.

 

Period.

 

It turned out that the second decision maker was available to be there after all.

 

It was a great discussion.

 

They want it sold and closed by December of this year. 

 

They had an appraisal a couple of years ago that valued the property at $700K, so this was/is the bottom line number in their minds.

 

We did discuss Market Value versus Disposition versus Liquidation appraisals.

 

Digging deep into the history of the gated community where their property is located, it became apparent that properties sold very slowly, and that those that did sell were not at the price point they were seeking.

 

Without boring you with the nitty gritty of the analysis, our recommendation to them was to list it at $700K, and be prepared to accept something around the $670K-$680K mark for the time frame they were looking to sell.

 

They interviewed five other agents.

 

They selected the agent who claimed to be a "specialist in their price point" - and relisted at $725K!

 

 

 

I wonder if that agent shared with them what percentage of their listings fail to sell - Cancelled and Expired - and how many of their listings are nowhere near that price point?!

 

 

 

 

We'll be here to help the Sellers pick up the pieces when they "Expire" or "Cancel" again a few months from now.

 

The moral of the story is "However tempting, there is no point in throwing out a list price to Sellers at which the property won't sell, unless you want to waste time, money and effort marketing a listing that will never sell at that price!"

 

Is it difficult to turn away business at that price point?

 

It depends (channeling Michael Jacobs).

 

There is no point in engaging in something that doesn't at least hold out hope of being a Win/Win, in my humble opinion.

 

What say you??

 

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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

Thank you for the post. I must have missed the previous posts. I will read them.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 3 years ago

Hi Tony and Suzanne Marriott, Associate Brokers - This is something that I just had a similar experience in.  Very similar scenario except there was no time frame of when to sell. I couldn't believe the price it listed for. $70,000 over what I stated the property would sell for. In 2 weeks there was a $30K list change drop and 2 weeks later a $20K drop! - Some agents take on a listing ...no matter what. Probably the hardest part of our job is trying to convince a seller that we might just know a little more than they do! (Even with all the proof and comps on our side!) YIKES!

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Residential Brokerage) almost 3 years ago

Well Tony Tony and Suzanne Marriott, Associate Brokers Pricing is both ART and Science and with a little bit of mysticism thrown in. And then there is the marketing. The right "mix" is what it takes to sell a property (at any price).

With all that said, not every broker is an expert, even if they claim to be.

I think that the sellers need to be listened to and worked with. Just maybe they are right about price, but wrong about the marketing.

Bill Roberts

 

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) almost 3 years ago

This is where experience and knowledge in the local market make such a difference. While we never want to leave money on the table for our Sellers, we certainly do not want to start the relationship on a false pretention of allowing them to believe their value is higher than it is. Research and history of a neighborhood is imperative with value! 

Posted by Alex Gandel, Simi Valley CA Agent, Simi Valley Real Estate (Top Producing Agent, Pinnacle Estate Properties) almost 3 years ago

Hi Tony and Suzanne --- thanks for the mention and I'd say you may likely be right about receiving that call sometime in the future.   

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 almost 3 years ago

Taking an overpriced listing, unless your sellers agree to a price reduction strategy if the property does not sell at "their" price is a waste of time, energy, effort - and your reputation as an agent that gets their listings sold!

Posted by Lynnea Miller, Premier Real Estate Service in Central Oregon (Bend Premier Real Estate) almost 3 years ago

Taking overpriced listings is risky and something I like to avoid. That said, I see agents having success in listing homes at a higher price and then talking the sellers down to a lower price over time. I guess there's more than one way to skin a cat, but personally I have my reservations about this strategy. I prefer to educate my sellers before I list their houses and not do the educating while the house is listed. Plus, there is data out there to support the fact that houses that sell quicker, sell for more. Pricing a home right from the start is the best way to go. Anything else is a bit of a lottery game.

Posted by Denise Hamlin, Broker/Owner, Helping Happy Clients Make Smart Choices (Cardinal Realty ~ 319-400-0268) almost 3 years ago

We have had this same scenario occur to us numerous times in the past and I will bet you 'dollars to donuts' if it does sell while listed with this $725K agent, the final price will be $680K, Tony and Suzanne Marriott, Associate Brokers !

Posted by Sandy Padula and Norm Padula, JD, GRI, Presence, Persistence & Perseverance (HomeSmart Realty West & Geneva Financial, Llc.) almost 3 years ago

They must not be too motivated to be willing to "play" the market again. 

Posted by Carol Williams, Retired Agent / Broker / Property Manager (Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals.) almost 3 years ago

I say you dodged a bullet.  Maybe next time around they will be more informed . . .

Posted by Margaret Goss, Chicago's North Shore & Winnetka Real Estate (Baird & Warner Real Estate) almost 3 years ago

Good morning Tony & Suzanne.  Good thing yo walked away, I know I have on people who just won't listen.

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty) almost 3 years ago

Thank you Gita Bantwal - hope you enjoy them - 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) almost 3 years ago

It was so much simpler with Short Sales where the Sellers didn't really care about the sales price Sheri Sperry - MCNE - 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) almost 3 years ago

Anything is possible Bill Roberts - in this case the Sellers have a particular challenge:

1. Sell their price to a listing agent

2. Sell their price to a Buyer

3. Sell their price to a Buyer's appraiser!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) almost 3 years ago

Absolutely Alex Gandel - 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) almost 3 years ago

We've had Sellers come back to us before Michael Jacobs - let's hope history repeats! - 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) almost 3 years ago

Agreed Lynnea Miller - 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) almost 3 years ago

We prefer to maintain our track record of selling every listing we have taken since June 2011 - Traditional and Short Sale Denise Hamlin - 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) almost 3 years ago

I'm not allowed donuts right now Sandy Padula and Norm Padula, JD, GRI NMLS#1483386 - but I'll take the dollars!! 

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) almost 3 years ago

They "think" they are - but - their game plan may well unravel before their eyes Carol Williams - 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) almost 3 years ago

I think so too Margaret Goss - 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) almost 3 years ago

The best thing to do IMHO James Dray - 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) almost 3 years ago

Hi Tony Tony and Suzanne Marriott, Associate Brokers I know it hurts to lose a listing, but not every listing can be gotten, even by the best team in Phoenix. And just maybe they have been able to do #1 and #2, but #3 will be the real test.

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) almost 3 years ago

Great post I always tell my Seller's you want to list the property to sell not just list the home. Thanks for sharing I hope you have a great afternoon.

Posted by Pat Champion, Call the "CHAMPION" for all your real estate needs (Coldwell Banker Camelot Realty) almost 3 years ago

We will bide our time Bill Roberts - 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) almost 3 years ago

Right on target Pat Champion - 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) almost 3 years ago

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