The Consequences of Non-Competitive Listings
Below is an article sent to real estate agents about the dangers of overpricing listings. In the next posting, The Consequences of Non-Competitive Listings Part 2, I write an article with my advice to agents and to sellers about overpricing.
Pricing 101: A Lesson for Real Estate Agents by Rich Casto
Right now it is critical to get real estate listings priced competitively. This can be a tough task with some of the sellers that are out there.
- No one in that neighborhood will ever list with you. Sellers will pay for results. You didn’t get one.
- All of the seller’s friends, co-workers, and family will never use you either as the seller is blaming you for their misfortune.
- If the listing was a referral then it spreads like a disease throughout your database and you wonder why you aren’t getting any more referrals!
My favorite answer is “at least I get sign calls.” At what expense? You, your office and your brand getting thrown under the bus? Brokers and managers are complicit with the agent. Seems the broker is not in tune with how many irritated sellers and ill will is created. Now they wonder why their company is in trouble in the bad times.
Your solution is simple.
Never take an overpriced listing again. Make sure you price it within the competing house to include new construction. Quit using the CMA program that base pricing on sold properties. This telegraphs incompetence. How many sold properties did your last buyer view before they made their buying decision? That’s right…none.