Tony and Suzanne Marriott's Phoenix Arizona Real Estate Blog

head_left_image

Advice For Sellers - How To Avoid A Big Trap!!

So, you need to sell your home.

 

 

 

And you have already listed it with an agent at least once, sometimes more, and it has not sold.

 

There are several reasons a home may not sell, preparation, presentation, location and a few others, but the single biggest culprit is................

 

PRICE!!!

 

Every property will sell at market price - the price the market is willing to pay for that property in it's current condition, based on where it is located.

 

You can't change the location.

 

You can ensure that the property is in the best possible condition if you are interested in the market being interested at the highest possible price.

Some repairs and/or enhancements will be "profitable" - others you may not recoup the cost of said repairs and/or enhancements in your eventual sale price.

 

You can also hire a Listing Broker that uses a professional photographer to showcase your "Ready for Showtime" home with a TourFactory.com Virtual Tour - and a Listing Broker that ensures your home receives the widest possible exposure to the 99% of the Buyers who use the internet to select the properties they want to see in person.

 

But your home was immaculate last time it went on the market and then expired, and the previous agent did use a professional photographer.

 

What now???!!

 

You need to avoid repeating the "trap" you fell into last time - where you listed with an agent who either suggested a list price which the market did not support, or who did not have the integrity to be honest with you about the lack of market support for the price you stipulated.  

 

The listing agent reserved their "strength" for the "price reduction" discussions to come after you were locked into a Listing Agreement with them.

 

So, how do you avoid the "trap" of listing, again, with the listing agent who promises (or agrees to) the highest list price?

 

It's quite simple.

 

You tell them up front that while you are willing to list with them because you don't want to leave any money on the table, the moment they ask you to reduce the list price to a point which matches what the realistic Listing Broker advised you in the first place, you will immediately cancel the listing with them, and re-list with the realistic Listing Broker, and you require that language be part of the  Listing Agreement!

 

I guarantee you, listing agents who "specialize" in taking over-priced listings will not like that stipulation one bit!

 

Case in point - about 2 months ago a Seller who we met with and had been previously listed at $740K (then expired) decided to list with an agent "who specializes in their price point and their area".

 

We had advised them that the likely sale price would be somewhere in the $650K to $665K range based on market data, but would be willing to set an initial list price of $700K, given it's not unreasonable to expect offers within 5% of list price in that price range.

 

They need to be sold and closed by the middle of December.

 

They re-listed at $725K!

 

Then reduced it a few weeks later to $700K.  

 

The latest reduction to $675K translates into a $50K list price reduction in less than 2 months - still not under contract - and time is running out!

 

Does the listing agent who agreed to over-price the listing really care - given that they will still receive their commission when the property eventually sells?

 

I doubt it!

 

 

Sellers, If you really have to sell, you need to be realistic about price!

 

Those that makes promises they can't keep, will cost you significant amounts of time, stress and heartache!

 

 

-----------------------------------------------------------------------------------------------------------------------------------------------------------------

 

Click the button below to Subscribe to our

Arizona Real Estate blog!

 

 

 

 

 

All images purchased and  licensed from Shutterstock , shared from YouTube, sourced from Vectortoons, sourced from Pixabay, 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 Haven Express @ 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 Executive Officer - Haven Express @ Keller Williams Arizona Realty

Suzanne Marriott - Chief Learning Officer - Haven Express @ Keller Williams Arizona Realty

Associate Brokers, REALTORS
Haven Express
Keller Williams Arizona Realty

Comments

Hi Tony Tony and Suzanne Marriott, Associate Brokers What you are saying is that you need to be smart. Some agents only want under-priced listings so that they can "guarantee" a fast sale and their commisiion.

Bill Roberts

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

Excellent I see this all the time some folks do not understand that the first ten days of a listing is the most important when marketing.

Posted by Donald Urschalitz, P.A. Realtor ABR RSPS North Palm Beach County (One World Realty Inc.) about 3 years ago

Hi Tony and Suzanne Marriott, Associate Brokers  - I recently was the "realistic pricing REALTOR®" and lost the listing to someone who overpriced the home. In less than a month, the home has had 2 price reductions and is still on market. Your post hits home and sellers should take heed! You are telling it straight. This is what gives real estate agents a bad name. 

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

I know there would be more than a few agents out here that would turn green when hearing that stipulation in the listing agreement.

Posted by Chris Ann Cleland, Associate Broker, Bristow, VA (Long and Foster REALTORS®, Gainesville, VA) about 3 years ago

Unfortunately there are plenty of smooth talking agents out there willing to overprice a home, knowing full well it won't sell at that price.  Price reductions are a crucial part of their marketing plan. 

Posted by Sharon Tara, New Hampshire Home Stager (Sharon Tara Transformations) about 3 years ago

marti garaughty, abstract art, graphic design, marketing, WordPress consultant

Posted by marti garaughty, a highly caffeinated creative type... (garaughty.com) about 3 years ago

This is the 2nd post I've read about this very issue today.  Many years ago a wise broker taught me about overpriced listings and what typically happens. It's a long painful and not fruitful path to take for anybody.

Posted by Anna Banana Kruchten - Phoenix Homes Sales, 603-380-4886 (Phoenix Property Shoppe) about 3 years ago

That's another way of looking at it Bill Roberts - thanks for stopping by with a comment!

 

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (Haven Express @ Keller Williams Arizona Realty) about 3 years ago

They are indeed Donald Urschalitz - thanks for stopping by with a comment!

 

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (Haven Express @ Keller Williams Arizona Realty) about 3 years ago

It's an "unfortunate practice" 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 (Haven Express @ Keller Williams Arizona Realty) about 3 years ago

I fully agree Chris Ann Cleland - thanks for stopping by with a comment!

 

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (Haven Express @ Keller Williams Arizona Realty) about 3 years ago

It's really a shame Sharon Tara - thanks for stopping by with a comment!

 

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (Haven Express @ Keller Williams Arizona Realty) about 3 years ago

Thanks marti garaughty !!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (Haven Express @ Keller Williams Arizona Realty) about 3 years ago

We are on the same page Anna Banana Kruchten - always good to hear from you - thanks for stopping by with a comment!

 

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (Haven Express @ Keller Williams Arizona Realty) about 3 years ago

This blog does not allow anonymous comments