I absolutely hate taking an overpriced listing and simply would not do it. It seems like one big waste of time to me since the market has been declining for the last 4 years. It is like going to work and not receiving a paycheck.
If a seller is overpriced from day one then they will really be overpriced 3-6-9 months down the road. However, the market is looking more positive as inventories are declining and unit sales are up. It appears that we are in or coming close to a bottom.
So should you start building your listing inventory even if the sellers are overpriced?
If you ask some of the largest producers in your market they will probably say yes.
I’m always looking to learn in this business so I like to observe the biggest producers. Most of them take a lot of listings. There is definitely a direct correlation between being a huge listing agent and selling a lot of real estate. If you look closely at some these large producers you will notice that they don’t always take a listing at an aggressive price.
In fact, many of their listings are over priced. However, in time they manage to get the seller to see the light and eventually many of them sell. Start observing the larger producers in your market and I think you will see the same patterns.
I read recently that a seller accepting the realities of the market is similar to the stages of the grieving process.
Stage 1 – Denial
During this stage the seller does not believe that the value of their home has fallen that much. They read stories and hear the news about the horrible real estate market but somehow their home and neighborhood are different. Those things apply to everyone else.
Stage 2 – Anger
When reality begins to set in the home seller will likely get angry. “How can my home be worth this little? After all I bought it before the housing boom. I am not going to give my house away!”
Stage 3 – Bargaining
When the seller gets past the anger stage they will often look for ways to bargain. Reality has not totally set in. There is a search for ways to get most of the “perceived value” that they had in their heads. This might come in the form of listing with that one Realtor who gave us the price we liked (1st listing agent).
Stage 4 – Depression
When it finally becomes clear that the bargaining is not working the home seller may face a period of depression. They see no working solutions and cannot accept the fact that their home is worth much less than they thought.
Stage 5 – Acceptance
The final stage is acceptance. They realize that the perceived value in their head was wrong and the market dictates the value of their home. They are not happy about it but at
least they can now move on to the next chapter in their lives. This is where they might be on to the 2nd or 3rd listing agent. As a listing agent these are the sellers you want to find.
If the market is flattening out and you have the time and patience to hold the hand of a seller during the grieving process this may be a great time for you to start taking those overpriced listings. If you get a number of them chances are good that the seller will eventually see the light and accept the market realities. When that happens your overpriced listing can quickly become a very attractive, aggressively priced one.