Well, congratulations, Cheryl. That's the kind of tricks I am now ready to engage in myself. List at over $100,000 than what the market will bare and sell it in house for the true value. I'm loving it. In the past I was stupid enough to tell someone what the real value of the home was and never got the listing. Here's a link to one that I didn't get because I'm stupid:

http://www.jerseyshoremls.net/njs/maildoc/a002YI5203.html

Check out the price today and the price the other agent started with over 200 days on the market. It is now where I told the guy almost a year ago I could sell it for. Of course, today, if I were going to be honest, the seller would need to adjust downward in price. But, I think some people will still look at it with the price I recommend to him almost a year ago.

Yes, you are one smart cookie! From now on - I'm in the game. The sun is shining and its a beautiful day!

Congrats on the SALE!!!

I have mixed feelings about taking an overpriced listing. Listening to the seller complain about why their house isn't selling - when you've explained to them it is overpriced is like pulling teeth for me.

Also, beating them up on the price constantly just to get it lowered to the right price is not the best scenario.

Nonetheless, sometimes we do win when they drop their price and it can put money in our pocket in the long run.

The downside is we can damage our reputation when the home doesn't sell and the seller tells everyone we don't know what we are doing or don't know how to sell a house (their opinion).

Regardless, GREAT JOB Cheryl & happy thanksgiving everyone!

I wrote a post about this a few months ago. I had lost two listings to two veteran agents, not because of their experience, but because they told the sellers that they could get about $25,000 more than everybody else including me. The market was at its peak back then.  Fast forward a few months later and guess what; both houses are still on the market, now are vacant since the sellers relocated to other states, and to make it worst, the market took a downturn. No wonder many people have lost and will continue to lose their homes to foreclosure. Buyers and sellers determine the price, that's true, but is up to us "the experts" "the professionals"  to make sure they don't make decisions without accurate facts because at the end they are the ones who bear the consequences.

After all these years, I know what price range a property will sell for, in a reasonable amount of time, for the existing market conditions.  Have I taken a listing that are overpriced, yes!  I know that it is my obligation to continue to educated the sellers.  That doesn't mean talking with the clients once a month, but contiuing to provide market information to the clients.  I learned a long time ago, that I am a knowledgable and professional agent.  I can only do my best, and the sellers need to take responsibility for their decisions.  If they are required to continue to reduce their price, then it is ther fault not mine.  I don't know where I learned this phrase, "How fast your home sells, will depend on how you use the information the market provides you."  That phrase is the first page of my presentation book.  It has served me well.

Many agents say they never take an overpriced listing, if you continue to provide your seller with great communication and marketing information, they will continue working with you.

Also remember the math!!

0% of $749,000 = $0.00

3% of $ 569,000 = 17070 x 70% split = $11949.00 / 80 hrs of work = $149.00 per hour.  Not a bad return on your time

Hey Cheryl, here is another link to a listing that just sold:

http://www.jerseyshoremls.net/njs/maildoc/a001aG7164.html

the agent listed it at $1,200,000 and had it for over 400 days. The previous agent couldn't get it sold the asking price of $929,000 and had it on the market for over 380 days. But, this guy wanted to beleive the "new" agent could get it done for over a million bucks. She got both sides of the sale. She ROCKS! I'm in the game. You guys have taught me. Thanks

Sometimes you are between a rock and a hard place. If you give them the information and they still want to sell at a high price and avoid doing  all repairs do you take the listing and hope you can convince them to do repairs and lower the price - later? You find problems come up when the listing goes nowhere, you could get blamed for it not selling and the sellers may decide to find another agent because could not sell it... either way  - big stress.

Experience has taught me to state the case up front and walk if the client refuses to heed my recommendations. Do you have time to beat a dead horse or do you need your time to find a paying client? This is will be my self talk from now on.

To use Dennis' analogy   - % of $700k? or 3% or 525k?

Pauline, the house sold for $715,000 the listing agent got both sides of the sale because no other agent knew the seller would accept such an offer. It is just plain genius. I am in!