Pearland Real Estate Expert

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The Saga of a Listing Agent....

The saga of a listing agent....

It is late January 2011 and a young professional couple with a 4 month old baby, 3 inside cats and a big inside dog, called me and asked me to list their house.... That’s the good news....  They bought the house new, from the dirt, and put a lot of upgrades in the house and did not use a Realtor... That is the bad news.... They over paid for the house and all of the upgrades 3 years ago and now they want to sell and move across town to be closer to friends and family.... The neighbourhood they live in has been declining in value for the past 3 year and now they are upside down on their house.... I valued the house between $195K - $208K and they paid $225,900.....

They where just devastated by the news... They asked what would be the harm of listing the house at $240,000 and just hoping someone would buy it.... I went through the process of someone buying a house and what every good agent would do when showing buyers homes in their area of town.... The wife was very sad and almost started crying..... I gave them my speech about how they really haven’t lost any money yet, and should just wait to see what the market does in the months to come....

I hope they heed my advice about not listing the house.   I hope they don’t keep interviewing agents until they find one who will list it at the price they want..... This is a big problem. Some agent will say ANYTHING, at ANY price to get the listing.... And that is just wrong.... It is against the Realtor Code of Ethics to take a listing that is OVERPRICED and has no chance of selling..... Do the right thing by your clients.... Tell them the truth, not what they want to hear.... The market will turn around.... It is just a matter of time....

Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources:http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at: http://www.danfrankrealty.com. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.


Remember, Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog
at:  http://www.pearlandrealtyblog.com

 

 
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Comment balloon 4 commentsDanny Frank • January 21 2011 12:10PM

Comments

Well said Danny.  It is sad but I see this happening all over the place, especially newer construction. 

Posted by Amanda Christiansen, Christiansen Group Realty (Christiansen Group Realty (260)704-0843) over 7 years ago

Danny, this is a great post.. I am an agent that learned the hard way don't take an overpriced listing just to have a listing, though once I ran the comps it didn't appear to be overpriced but the time that it has spent on the market shows that it is and a bigger headache than what it is worth. I can assure you I will NEVER do that again.. It is not worth my time, money or effort to market a house that won't sell.

Posted by Stacey Smith, Your Orange County Beach Cities Realtor (Coldwell Banker) over 7 years ago

Danny, for those without a true NEED and motivation to sell now it really is best to wait, you hope that they don't put themselves through a doomed listing at some ridiculous price but you can't make decisions for them, just give them your honest advice. 

Posted by Diane McDermott, Charlotte NC Real Estate Market (Realtor®, GRI, Landis e2 Real Estate, LLC) over 7 years ago

No one wants to be the bearer of bad news, but sometimes you have to be the voice of reason. The same is true for me in the lending industry, sometimes we have to explain a potential clients income and debts are the reality, and that may impact their dream. I spoke with someone this week that earns most of her income from bonus and commission, she has only been in this job for less than a year, and she has an $800. car payment. By only using her base income (because she has no history of bonus a/o commission) her car payment is larger than the amount of mortgage I can get her approved for. DO you think she may consult another lender? The point is this; we cannot in either of our fields of expertise change the reality that despite our desire to gain a client, if we cannot service them (by my approving their loan, or you selling their home) we are only suspending reality, and that can't last forever. The simple rule is tell the truth, and do what's right; if you've done that, then you've done all you can.  

Posted by Bob Ware (AMCAP Premier Mortgage LTD (NMLS# 129122)) over 7 years ago

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