| Steve Horrillo 2005-07-05, 6:25 pm |
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On 4-Jul-2005, "V" <krazygirl@yahoo.com> wrote:
quote:
> The point you made that
> I *strongly* disagree with is that you'll only get results if you sell
> under
> market value. I do not under-price homes nor does anyone in our office
> that
> I know of.....we look at the same MLS system to pull comps as a full
> service
> agent does. I refuse to list if it's grossly over-priced just like you or
>
> anyone here probably has. My sellers have input as to where to price the
> home, but I still reserve the right to accept the listing or not.
I find it hard to believe you walk away from overpriced listings. It's their
home, they have the right to at least try to sell it at the price they want.
They may need to sell it at that price or they won't have the money to
accomplish their goals or pay off the liens on the property. If you did a
Net Sheet you might discover that they have no choice but to over-price the
home. Do you do a Net Sheet? Do you know how to get a lender to take a Short
Sale?
Realtors, as part of their sales pitch, often use the rationalization that
if the owner initially puts the price too high, "they miss out on the
initial "buzz" that's created among the Butyer's Agents. That's true if you
don't have any skill beyond what the average Realtor has. At any time you
can cancel that listing and republish it with a new price, pictures and MLS
Number. This causes a whole new set of emails to be sent out as well. Not to
mention you should send out emails to all the Agents in your area. When I do
that I get 20-30 responses that I would ordinarily not have had. Do you have
a method for bulk emailing fellow agents? My list is 50,000 and growing.
When your client's home gets shown do you follow up with the Agent to see
why they didn't put in an offer? Do you offer them ways to try to compel
their client to buy? Do you try to get the seller to sweeten the terms
rather that lowering the price.
They also rationalize that if it's too high price the house won't appraise
and buyer won't get the loan. This may be true if you don't know how to
market the home properly. It's a number's game. The more potential buyers
you have, the greater your chance of finding someone who has no problem
putting 20-30% + as a down payment. If you're not skilled at influencing an
appraiser. If you don't have a good mortgage broker. If you have a scarcity
of buyers. Then yes, you need to compensate by lowering the or the price the
listing.
Like I said in previous posts. I would routinely put the home in the MLS and
in the For Sale By Owner system. At least 3% higher in the MLS. The MLS
consistently out performed the FSBO advertising. To not put them on the MLS,
you're simply getting their business by appealing to their innate greed. As
a Realtor you should know by now the MLS is the best way to go. If you have
a FSBO advertising system set up then use that too and price it lower in
that system. But to not put them on the MLS when you have it at your
disposal is pure negligence.
I started out at a company like yours. I too rationalized away the truth
that was staring me in the face. But if you have any sort of conscience
you're eventually going to become disillusioned.
In sales "the drop" is a method used by sales people who have no other
negotiating or sales skills. Drop the price. Drop your commission. Appeal to
the sellers greed. It's the easy way out. That's the only thing an unaided
FSBO has going for them. As a Realtor you have a lot more tools at your
disposal. You are not acting in the best interest of your client if not use
everything you have at your disposal.
--
Warmest regards,
Steve Horrillo, Realtor / C.Ht.
http://BrokerAgentTraining.com (MLXchange & Computer Training for Real
Estate Professionals)
http://over100percent.com (Realtors Earn Over 100 Percent at EXIT Realty)
http:/HipFSBO.com (Object to Paying Commission? Find a FSBO Friendly Real
Estate Professional)
http://eLOWn.com ("Got a heartbeat?" Get a loan! Credit Repair Library)
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