Friday, November 14th, 2008 at 7:15 PM
Unforgiving Market
Recently a blog reader asked me to help him sell his home. I had been communicating over the previous few months with my thoughts on the market, and price, and they were considering their options.
Once they were ready, I visited the home and gave my assessment of value. They wanted to start higher, and because the market is tough, I politely declined.
He sent in this follow-up:
Hi Jim,
I just wanted to give you an update on the selling of our home. We took the property off the market as of yesterday after we found a renter and signed a one year lease. Your read of the market was spot on and I think it was smart of you not to be our agent because there was very little chance to sell at the price we wanted.
They only wanted to go 5% higher than my price, but this market is unforgiving. I will list your home at the top of the range, but no higher. It is wrong for agents to take listings too high, it’s a disservice to everyone.
Posted on Friday, November 14th, 2008 at 7:15 PM in Listing Agent Practices | 21 Comments » | 
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I know someone in the Carlsbad 92009 area trying to sell her house. The same model, in better condition, a block away sold for ~$500k. My friend knew this, but her realtor said she wouldn’t be the listing agent if the house was listed for less than $599k. Well, the house has been on the market for at least 6 weeks now at $599k. No takers yet. What a waste of time.
garbler | November 14th, 2008 at 10:06 pmAgents who think their job is to protect their sellers from selling need to retire.
Jim the Realtor | November 15th, 2008 at 5:23 amThis seller is expecting a turnaround in the next year? I think they will be sorely disappointed come 2009 when comps are even lower. They may be landlord for longer than they intend.
Jakob | November 15th, 2008 at 6:46 amIf agents dont take overpriced listings how will they ever get reduced. C’Mon Jim, we are sure you have taken more than your share. You dont have to get up on your high horse. I dont beleive any of us bubblesitters would have a problem with an agent taking an overpriced turkey as long as they pound the price reduction drum on a weekly basis.
Iwannabuyahome | November 15th, 2008 at 8:56 amyou are sure I’ve taken more than my share?
I take offense to that.
Jim the Realtor | November 15th, 2008 at 9:24 amI would think it’s simply a waste of time for a successful realtor to take an overpriced turkey. Nothing personal, no ego, just business.
A realtor who does at this point is either desperate, or misled by the ease of their success over the last 6 years and has no concept of shifting markets (a moron.)
The Blur | November 15th, 2008 at 9:48 am@Iwannabuyahome: Having met Jim in person and having read his blog and seen his listings, I will stick by what he says. He’s honest and really won’t take an OPT. Unfortunately, nearly every other Realtor WILL — because they’re desperate, and they hope someone will buy, or they’ll nag the seller to relent later.
Jim is one of the few Realtors who actually sticks by his word on these. That’s why he has my respect.
-Erica
Erica Douglass | November 15th, 2008 at 11:35 amThe few potential buyers out there (like me) know the market backwards and forwards, and follow the foreclosure market more closely than the stock market. . .we laugh at overpriced homes and condos, and take bets among ourselves as to how long they will be on the market before they appear on Craigslist as a rental. . .my favorite is one downtown here on Kettner that was on the sales market for two years (through 5 realtors) was then listed for rent, and has now reduced his rental price (from above market). . .still for rent after 3 months!!
Mark in San Diego | November 15th, 2008 at 11:48 amAn idea with good potential. You need to be optimistic sometimes.
Shane | November 15th, 2008 at 12:32 pmPerhaps the “more than your share” comment was hyperbole, but can you honestly say you havent taken an OPT in the last few years. I dont think you are dishonest to take them, its part of your job to get sellers properly priced. I sort of remember a single story listing up in Oceanside that you had listed for over a year which was an OPT. I bet there were more. This isnt an indictment for taking them but rather for putting down others in your profession who do. I think you take too strong a stance against your peers as if you are the only competent person out there. My aunt has been at it for 3 decades in LA and does a fine job. She’s a reader of your blog also. I know this is your blog but enough with bashing of every other realtor out there. You are better than that yourself and it doesnt make you look better.
Iwannabuyahome | November 15th, 2008 at 5:38 pmIwanna,
You certainly have no problem bashing Jim in your earlier post, using a pretty weak line of reasoning at best.
Realters who know how to sell need to filter what jobs they take on. Only desperate and ineffective realtors should take on the longshots where the seller won’t budge from an unreasonble price. Bottom line, sellers decide the price they offer the house at, and realters decide whether or not the job is worth their time and effort.
BDiego | November 15th, 2008 at 5:46 pmThanks BDiego.
Apparently Iwanna has had it out for me for a while, because I don’t know how you can conclude that I’m bashing realtors from this post – it must have been from other posts. I have heeded previous advice suggesting that I lay off other agents.
I, and the seller who sent in the original thought, poured over the text all day before printing this, because I knew somebody would jump on it. I was more worried about him than me, and I’d like to thank those who refrained from tearing into the seller. We’re all trying to find our way here, and learn some lessons.
My intended point was to give other sellers a recent experience to perhaps learn from, not to toot my own horn. I have learned that numerous times – I can’t describe on my own blog any of my actual experiences or success stories without some anonymous reader tearing into me.
Jim the Realtor | November 15th, 2008 at 7:21 pmI’ll lay out the list of complaints from anonymous readers that, once heard, I think I have tried to respect:
1. Cussing (I said JC on a video once)
2. Parking on sidewalks.
3. Filming while driving.
4. Speeding.
5. Running stop signs.
6. Bashing other realtors.
7. Advertising my own listings.
8. Talking about any of my clients
9. Any mention of family
10. No politics.
11. Nothing allowed other than entertaining RE-related stuff.
If I have to tone it down more, it’s going to get pretty boring. Imagine all the real stories going on behind the scenes – if it weren’t for so many anonymous people lying in the weeds just dying for a moment to tear into me……
Jim the Realtor | November 15th, 2008 at 8:00 pmThis is too funny. Nowhere was I bashing Jim. I was asking him to refrain from the bashing and stick to the facts. God help us if only the desparate and ineffective realtors take on the OPT’s. We need experienced realtors like our host to take on these properties because they have the experience and confidence necessary to convince the sellers of what needs to be done. Taking overpriced lisitngs isnt a disservice to everyone, letting them stay that way is. Enough with the backslapping. I get it that Jim is one of the good honest and effective realtors out there.
Iwannabuyahome | November 15th, 2008 at 10:04 pmLet’s get to the real issue here: we should compliment Jim on his recent observance of traffic laws. There’s no arguing his improved behavior behind the wheel. (Although I do miss the commentary on the REO trails.)
The Blur | November 15th, 2008 at 10:34 pmHave you ever tried to convince a seller to lower their price?
There are two main problems:
1. Once they list, they start telling their family, friends, and neighbors, and the first question people ask is, “How much?”.
Once their price is out there, the ego gets in the way – they don’t want to lower their price and have to admit to their friends and neighbors that, not only were they wrong about their price, but that they really don’t know what it’ll take to sell it.
2. When they think about lowering their price, they are thinking $5,000 or $10,000, not 5% or 10%.
The best chance an agent has to make their case about the right price, is from the beginning – once the house is on the market, it’s very hard to convince the sellers to get in front of where they need to be, and you see the results today; sellers chasing the market down, or holding out.
Jim the Realtor | November 16th, 2008 at 7:33 amI still see absurb listing prices in my old neighborhood in Portland OR. Some people (or maybe just the banks) are getting real and lowering 2200-2400sft houses for ~270K. I just saw a new listing for a 1500sft house for $349K in the same neighborhood!! Seriously have these people lived under a rock for the past year? And what about the REALTOR?
anonymous | November 16th, 2008 at 10:55 amJim,
Why are you not supposed to advertise your own listings? Personally, I’d like to see more of them. Yes, I know you have links on the right, but would like some stories if the sellers allow it.
CA renter | November 16th, 2008 at 4:55 pmDitto on what CA renter said. I enjoy the stories…if you are at liberty to share…
Thanks, Jim!
BAM | November 16th, 2008 at 7:03 pmI thought the clear implication was that JTR was no different or better than anyone else and that’s just plain wrong.
DAve | November 16th, 2008 at 10:33 pmIf we refuse to appreciate and celebrate the good ones we’ll have fewer good ones to celebrate.
Jim,
Here is a challenge – Please take just one post and include the following:
1. Cussing 2. Parking on sidewalks. 3. Filming while driving. 4. Speeding. 5. Running stop signs. 6. Bashing other realtors. 7. Advertising your own listings. 8. Talk about any of your clients 9. Mention your family 10. Politics. 11. Anything other than entertaining RE-related stuff.
Could be an award winning performance. And the Oscar goes to…..
Neil Diamond | November 17th, 2008 at 10:08 am