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Thinking about thinking...

Realtors® who are customers.

By: John Bourassa
Thursday, May 03, 2007 8:37 PM

So often I hear stories from fellow Realtors® who vent out about how their day went showing properties to the "jerk customers" they recently worked with or how stubborn the "dreaming a-hole seller" was at the listing appointment. "That jerk found tons of faults in every house we saw and he shouted that each house was way-way overpriced." Or, I couldn’t convinced the a-hole seller that he wants $10 million dollar way too much for that shack is trying to sell." And so on.

How do we Realtors® act when we become buyers or sellers?

In my career, I have observed that those Realtors® above become the same customer as those they have ridiculed.

Five weeks ago a well known Realtor® looked at one of my condo listings on the beach priced in the high $500K ($35K less than the precious identical sold unit in the building, same stack but mine was two stories higher than the other one). She later presented an offer at $125K less than the asking price which reflected a price equivalent to that of 30 months ago. My Seller was upset and flat out rejected the offer without even counter it. The Agent degraded my seller by calling him stupid and he will be sorry later for not having countered her offer. Two weeks ago we’ve accepted another offer at $40K less that the asking price.

Meanwhile, there are a gazillion of houses and condos for sale in my county. I love to go to open houses. Ironically, many of those overpriced homes belong to Realtors® ". You go in and you hear the same excuses from that seller-agent as you would hear from a layman seller: "My house is worth so much more than all of those in this neighborhood because I filled out all the cracks on the driveway an on the garage walls and I carefully touched up with paint over the filler lines; I am the only one who has a Gardenia bush on his yard; I just put in a new asphalt shingle roof and my lot is a foot wider than any other lots around."

If you are in a downward real estate market price correction of the country, did you or will you price your home at fair market value based on the present comps? Or if you are a buyer anywhere, are you a low-baller too?

Yes, Realtors® are humans too but isn’t this sort of behavior kind of awkward, though like the clergyman preaching morality while engaging in adultery?

John

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Comments

Rick  Belben
Member Since '06

Rick Belben said:

I have found them to be the worst as sellers! Realtors own houses tend to always be overpriced.

Sometimes I think they just list their own house to get leads/activity

May 3, 2007 7:10 PM
John  Bourassa
Member Since '03

John Bourassa said:

Good point, Rick.

john

May 3, 2007 7:16 PM
Mark Cohen
Member Since '03

Mark Cohen said:

Believe it or not we are all human, with the same human faults.  Buyers, Sellers, Realtors, everybody is the same.

May 3, 2007 8:05 PM
Timothy Cregan
Member Since '07

Timothy Cregan said:

When people want to list at a price you know is absurd, ask when the last appraisal was done on their home?  I will pay for an appraisal myself to help the seller see what market value of their home is! (and to let them know that nobody will finance at that price) A freind of mine does this for me and charges very little, but it is well worth the money to get the home at a price that will sell!!  Well worth the $150 out of my commission check!

May 3, 2007 8:16 PM
Todd Clark
Member Since '06

Todd Clark said:

John,

Are you saying that we are not superhuman and we don't deserve better than the general public. This is one of the problems that the general public has said about Realtors for a long time. Even the stats from NAR shows that Realtors homes go longer without a price reduction than we ask our clients to go.

We need to keep in line with what we tell the public. If we say after 30 days price reduction then we should do it on our own homes!

Todd

May 3, 2007 9:09 PM
John  Bourassa
Member Since '03

John Bourassa said:

Hi Tim,

That is a good suggestion to help persuade our sellers and or buyers to adjust their listing price or their purchase offer.  But I think you are missing the point here.  

This is not about how to convince the sellers or the buyers, it is about us, Realtors.  How would YOU act when YOU become the seller of our own home or the buyer for a personal home?  Will you then have an appraisal and sell it for exactly what he is came up with.  If he says that your house is worth $100K less than what you think it is worth, how much will YOU then list your house?

John

May 3, 2007 9:36 PM
Ronda Kaufman
Member Since '06

Ronda Kaufman said:

I sold and bought a new personal house in Sept. I listed my house for $2000 less than the comps and it was under contract in 13 days. I bought a preforclosure at a price so the owner had to bring $5 to the table and I got a house $25,000 below appr. All this within 45 days. Both closed and everyone was happy.. The agent who had my new house listed called me last week and gave me a referral that I'm going to list this Sat. I guess I was good after all....

May 4, 2007 9:07 AM
Mipeco Realty, Inc -  Michaela Krestenic, Broker-Owner
Member Since '03

Mipeco Realty, Inc - Michaela Krestenic, Broker-Owner said:

I've had a chance to work with MYSELF as my client recently and have to admit, it's not easy. We bought a second house last year when market was still good but by the time we put the old one for sale (about 2 months later because we wanted to finish some remodeling jobs first), the market came basically to a stop. There were very few comps to use, had it listed as the only home on the market in our subdivision and about 10th cheapest home in town (started at about $324900), out of about 160 at that time. Took me nine months and several price changes to sell the home. At one point it was the 2nd cheapest home (and completely updated / remodeled) on the market, which still didn't help. Need I say that I felt like firing my agent quite a few times for not DOING ENOUGH! So when an offer finally came in, I had to listen to the great advice of my agent, myself that is ... and work something out. Ended up selling for $292K, which included credit towards buyers closing costs and was lucky to just break even after what we put into the house. And just like our sellers, had I received this offer last year, I would had never accepted it ... but as we all know, things change. I too thought my house was worth more ... and according to an appraisal of the home it was. But what good was it when there were not buyers willing to pay that price?

The thruth is that when we are the clients, whether buyers or sellers, we should still treat ourselves the same way we would treat our other clients. Otherwise we aren't really working in our best interest!

May 4, 2007 9:52 PM
Candice A Donofrio
Member Since '07

Candice A Donofrio said:

I try to be really cool and cooperative with agents when I am the client, out of respect for the hard work I know they do--and I know it feels to be mistreated by a fellow 'professional'.

I've had these things happen with licensees I represented:

Buyers take too long to get their financing together despite reminders that 'time is of the essence' so they couldn't close timely and lose their deal.

One broker/owner of 2 offices in two different states who just couldn't be bothered to fund an escrow told me he wasn't in breach because he said so! They had to pick me up off the floor laughing so hard . . .

Buyer waiving all appraisal and financing contingencies in an executed contract, then stating the seller would 'have to reduce the price if it didn't appraise' weeks into transaction.

Seller telling me that he didn't have to perform to the contract because even though he signed it, he didn't read it and he would claim to a judge he didn't understand . . .

I am not making these up . . . LOL

It's very difficult to work with many agent clients as you tread such a fine line between working hard to protect your client and maintaining professional courtesy when they are obviously not acting in their best interest . . .

May 5, 2007 9:53 PM

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My comments herein are not authotitative; they are humble expressions of my wanderous mind or they are recollections of my past or present real estate experiences, whether they are good or bad. Hopefully, someone may profit from them.