Realtors and Sellers Need to be Realistic

Daily Real Estate News | March 24, 2009 | Share

Practitioners Get Tough in Current Market

Chicago-area practitioners say they are increasingly likely to walk away from would-be sellers who insist on setting the price too high.

For instance, Michael Shenfeld, an associate at Koenig & Strey GMAC in Lincoln Park, refused a listing when he couldn’t persuade a potential client to list his condo $25,000 lower than others were selling because it was in poor condition.

"I walked away and said, ‘This is not the best use of my time or your time,'" he says.

Customers can be especially difficult to deal with if they are underwater on expensive properties, says Scott Foster, a practitioner at RE/MAX Exclusive Properties in Chicago. When he suggested a short sale to owners of a $500,000 apartment, “I was shown the door,” he said.

Source: Crain’s Chicago, Kevin Davis (03/23/2009)

I have been there and done that. It never ceases to amaze me how sellers can think one characteristic, that may or may not be a plus, can justify listing their home for more than market value. For example they may love the orange shag carpet, wood paneling, or funky layout and believe their home is worth more than the home down the street that has been updated and has more square feet, but the reality is, it is not. They refuse to see that larger homes are selling for less and somehow think that because they feel their home is worth more every buyer will be willing to pay more as well. I have passed on taking such listings because when the home doesn't get an offer, the seller will blame it on the pictures, the sign, the flyer, my marketing and yes, eventually me. If an offer comes in at the market value many sellers will be insulted and reject the offer. It is a no win situation that ends up being a huge waste of time, money and energy. Just as I qualify buyers before taking them out to see properties, I also qualify the seller before taking the listing. Seller's are hiring me to do a job, if I can not honestly say I can get the job done, I am not going to take the listing and set them up for a disappointment.