I have come to find out that there are good agents in this business and then there are the not-so-good agents.
There are the ones who will give up their commissions without so much as even a effort to make sure that they are paid what they are worth...or then again maybe they are paid what they are worth. Then there are the agents that overprice a listing just to get their sign in the yard in this market.
I think the second, overpricing a listing, is worse than the first.
Why...why...why...would you do that? Why, when you have the numbers so readily available would you knowingly inflate a listing price just to get your sign in the yard? I personally will walk away from a listing if I know that the seller just will not listen to what the market is saying and insists on overpricing the house. BUT, I can then continue to conduct my business with the integrity and high standards I always try to commit to.
Do these agents NOT understand that they are doing several injustices by doing this?
They are first and foremost doing a injustice to the seller. They are basically saying to the seller that I am not good enough to tell you the truth...but I will lie to you in a second just to get my sign in your yard. Think that is the only thing I will lie about? Think again...
Secondly, they are doing a HUGE injustice to themselves. I KNOW that I am a good enough agent to analyze the numbers and interpret them CORRECTLY for my sellers. I KNOW that my services are worth every bit of the commission I charge. I KNOW I owe it to myself and to my family to conduct my business in a truthful manner. And lastly, but not least...I KNOW that my business will grow further and be stronger for conducting my business by those beliefs.
Third...they are doing a HUGE injustice to the market. Overpricing a listing makes that listing sit on the market LONGER and that's where the bad news of the market not moving is being generated. I always feel for those agents that are so inept in thier business that they must do this and then they have a listing that has been on the market forever. Apparently their training is really lacking or they just don't care about what the reputation they are building for themselves is. I take pride in telling my sellers my average DOM, I just wonder if those agents who are knowingly overpricing the listings share their DOM with the sellers or if they just paint a beautiful picture for them.
I have had two listings in the past month...NEITHER made it to the 30 day mark before having a FULL OFFER and accepted contract. I am proud of that and my sellers love me. I tell my sellers upfront at the listing appointment that I am not going to tell them lies, that I may say something they do not want to hear but they need to hear. I tell them the truth.
I never want to be in the shoes of the overpriced listing agent. I NEVER want to have to admit to my seller that I was way wrong on my numbers and now they must reduce the house (losing money that they were already looking forward to) just to make it competitive. I cannot think it would be pleasant to have to answer the bombardment of questions from the seller and to deal with them being upset because I failed to do my job.
I wrote all this as a result of my local MLS. Everyday I check the newest listings on the market. EVERYDAY there are several that are way overpriced. Everyday I see agents stooping to the level of letting the home seller set the price no matter what the market is saying.
I say this must be brought under control, NOW! The agents that are doing this practice are the ones who are feeding the media the news that the market is so bad. I don't know about your area, but houses are still moving in my area...but if these agents continue to overprice that will soon stop.