Hawaii Randy's Real Estate Opinions: Good Listing vs. Bad Listing

Good Listing vs. Bad Listing

While showing properties you run into the occasional listing that makes you ask the question... ThumbsUpWhat were they thinking?

A little while back I was checking on an area just above our town that has five condo complexes.  All five complexes have a series of concrete buildings with identical floor plans all built in the early 70's.  There were several 1, 2 & 3 bedroom units for sale.  They units are popular among the investors; they generally run about $50,000 to $100,000 less than those in the planned community right next to it.  The prices very by about $20,000 from the worst to the nicest most upgraded 1 bedroom/ 1 bath unit.

Let's see we there are a few they are priced ranging from $170,000 to $187,000. 

Then there are two others one listed for $129,000 and one for $249,000. 

The one listed at $129,000 was sold in 4 days for $125,000 with the listing agent representing both seller and buyer.  I wouldn't want to be that agent if the seller ever decides it was severely under priced.

The other for $249,000 was also interesting.  The highest ever closing in that complex since construction in 1973 was $187,000. 

I called the agent and asked what a $249,000 looked liked (the listing had no pictures of the unit).  I asked why this was unit so much higher than anything else ever sold?  She responded that it had granite counter tops.

Hmmm.  $1000 worth of counter tops raises the value $60,000 to $70,000.  I am ThumbsDownputting granite in everything from now on.

The listing recently expired after one year.  And surprise, surprise, it didn't sell.

I understand how young agents will take on anything that they can get their hands on.  I also understand that those who lack sales and negotiating skills will be afraid to say anything to the seller they may not want to hear for fear of loosing the listing.  You need to insert common sense in the process.

By picking up a bad listing:

  • You will do nothing to build your reputation.
  • You will spend good time and money to market a failure.
  • The seller will never be satisfied with the job you did, so forget about referrals.
  • The time spent on this loser could have been spent finding a money making piece of business.

You will know you have turned the corner as a professional when you go on a listing call and you there to find out two things:

  • Does the seller want to list with you?
  • Are you willing to accept this listing?

Always remember a bad listing makes no one any money.

 

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Randy L. Prothero, REALTOR®

Broker-in-Charge, ABR, AHWD, CRB, CRS, e-PRO, GRI, MRP, SFR

eXp Realty

Team Leader - "The Prothero Group"

Randy Prothero is well established as an expert in working with military / VA clients and first time home buyers.  His home seller's (listing) campaign is one of the most aggressive marketing programs in the area.  His luxury home listings sell faster and for more money.

Based out of Mililani, Hawaii. Randy services the island of Oahu (Honolulu County) Performs mediations and ombudsman services for the Board of Realtors.  To improve overall professionalism in his area Randy also offers classes for real estate agents. 

www.HawaiiRandy.comOahu (Honolulu County) Property Search  Hawaii Military Relocations

Comment balloon 15 commentsRandy Prothero • November 24 2006 12:16AM

Comments

Randy,

You are not the only one, It has happened to me the same experience and believe me, they are not young, I believe that they are experienced agents, hm...  what a shame to have these kind of situations.  Once, I have a very bad experience with one of those bad apples, they are stubburn and they believe that it is in that way,  I just leave them, but I laugh of it, how ignorant they are and they still want to sell it at that price.  I have posted something on my blogs about appraisals, I will bring it to you, so you can read a little.    I am not an appraiser, but I understand very well how it works.

Ray Saenz, Realtor
Colorado Real Estate

Posted by Ray Saenz, Homes for Sale in Laredo, TX - Texas, Realtor (Exit Realty Laredo) over 11 years ago

Randy, when we're first starting out, we tend to be a little more desperate and willing list anything and everything. Once we've developed our business and built some consistency, we have the luxury of being more selective.

Posted by Rich Jacobson, Your Kitsap County WA Real Estate Broker (Fathom Realty West Sound) over 11 years ago

Ray - The ones that kill me are the agents who seem to oblivious to the fact there is something wrong with their pricing.  One day they may learn to look at comps.

Rich - The one piece of advice I give to out newer agents is when you are starting out chase every lead even if it is a long shot.  But be careful not to let the client jump off a cliff.

One thing a really good agent in my office does from time to time is have a couple of us see her listings and give feedback to her client before the first showing.  We can say things that she may be a little shy about saying.  The clients usually respect our opinions and it has been a helpful tool for her

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 11 years ago

Randy,

Something more, some buyer's agents do not check the comps before submit and offer for their clients, and when it gets the time for an appraisal, appraisal do not come to the price that was agreed on the contract, and it starts the big issue.   Bahh :)

Ray Saenz

Posted by Ray Saenz, Homes for Sale in Laredo, TX - Texas, Realtor (Exit Realty Laredo) over 11 years ago
You're right, it's not always the new agents. Sometimes agents buy their way into upper end listings by overpricing and undercharging. What's the old saying? You can fool some of the people all the time and all of the people some of the time, but you can't fool all of the people all of the time.
Posted by Sharon Simms, St. Petersburg FL - CRS CIPS CLHMS RSPS (Coastal Properties Group International - Christie's International) over 11 years ago

Just a few thoughts here...

If all new Realtors saved a years salary before jumping into Real Estate full time they would not have to go down the desperate road. Unfortunately, many new Realtors do not look into the future...

A Professional knows that the two key factors in selling Real Estate are honesty and price. Price being the real way to sell Real Estate...

Under pricing a listing is dishonest...

Over pricing a listing is dishonest...

Hmmm. Honesty must be one of the key factors in staying in business...:0)

TLW "The Lovely Wife"...Priced To Sell...:0)...ROAR!

Posted by "The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW. (President-Tutas Towne Realty, Inc.) over 11 years ago

Words of wisdom.  I will add. . . . . .

Words of wisdom.

An over priced listing will eat you alive.
A house with ugly landscaping will eat you alive.
A house with cluttered interiors will eat you alive.
A house with pet odors will eat you alive.
A house with obsolete appliances will eat you alive.
A house with poor access to show (no lockbox) will eat you alive.
A house with loose pets will eat you alive.
An over priced listing will eat you alive.

Leave these listings for your competition.  Listings that fit into the above are NOT worth the angst.

 

 

Posted by Lenn Harley over 11 years ago

I just want to add my 2 cents. I always do what I learned in CRS. Before you go to a listing appointment, write down your walk away price and have it in your pocket. At the point when you are discussing pricing, and have explained all of the dynamics and the client continues being unrealistic, tell him that you have a price in mind that it just would not be in anyones best interest to go above, and that you came to the appointment with it written down. Tell the seller again some of the finer points about pricing to sell. Finally, show them the figure. 

Remember, they usually arrive at their unreasonable price by this formula:  GIGO + 1 SWG = 1 OPT  (Garbage In, Garbage Out) plus 1 Scientific Wild Guess equals One Over Priced Turkey)

Posted by Michael S. Mackey, REALTOR ABR, CRS, GRI, RSPS (CENTURY 21 All Islands) over 11 years ago

Ray - The agent who does not check comps should find another line of work.

Sharon - Good point, there are weak agents handling upper priced properties also.

TLW - I find that most agents who consistently under or over price listings are weak agents.  The higher you sell your listings the more likely other people in the area will want you to represent them.  Having overpriced stale listings that do not sell does not help your cause either.

Lenn - good tip, I will take that listing if you dump the overpriced and one other.

Michael - I do something similar, but I wait until I do good inspection of the home before I come up with a number.  I then give a small list of things to do to get it ready, so we can get that price.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 11 years ago
Yo...My cause is honesty...You must have missed that part...We do not have and never will have underpriced or overpriced listings. That is not the way we do things. We use honesty. Works pretty good for us...God Bless...TLW...ROAR!
Posted by "The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW. (President-Tutas Towne Realty, Inc.) over 11 years ago
Randy, even if that Realtor could find someone willing to pay for the high price unit, how in the world would it ever stand a chance of appraising for that amount even?  Some Realtors really lack in the common since department.
Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 11 years ago

TLW - sorry for the misunderstanding, I was agreeing with you.

George -  I agree it doesn't count unless it closes. 

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 11 years ago
Oh! I'm sorry too. I missed it man...Now that I have read it again I get it. :0)...TLW...ROAR!
Posted by "The Lovely Wife" (Broker Bryantnulls Wife) The One And Only TLW. (President-Tutas Towne Realty, Inc.) over 11 years ago

During last years great market, I had an opportunity to take a listing on a beautiful home.  Maximum sale price after all things considered:  $625,000.  The sellers wanted me to list it for $750,000 because they saw how hot the market was. 

I picked up my briefcase and listing presentation and walked out the door.  During this time I had a trainer at the company I was working for (I was a new agent) and she told me to call them and continue to work them. 

I left that company and moved over to C21.  I am glad that you clarified "young agents" rather than "new agents" in your blog because a "young agent" may have taken that listing but a "new agent" with years of common sense and life experience knew it was a big LOSER!  This is regardless of any real estate experience.

Aloha bruddah!

Posted by 1SG (Ret.) David Kucic, President and Owner (Hawaii Military Realty, Inc.) over 11 years ago

TLW - No problemo, I do this mostly late at night so I had to double check to make sure what I meant was what I said.

David - Excellent point!  New does not always mean inexperienced when it comes to common sense.

Posted by Randy Prothero, Hawaii REALTOR, (808) 384-5645 (eXp Realty) over 11 years ago

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