Over Priced Listings- No One Wins.

Silly as it may sound, lots of real estate agents -- even in a buyer's marjet where little is selling --
take overpriced listings.

Sometimes its deliberate. As a seller interviews each agent, often the estimate of value creeps upward. Each agent interviewed will top the price of the agent before knowing the seller wants to hear a high sale price. A seller who chooses an agent based on which estimate is highest is the ultimate loser. Yet almost every seller operates in this manner. It's a shame so few agents take the time to educate sellers that other factors such as marketing plans and the agent's negotiation abilities are far more important than estimate of value. The comps speak loudly if an agent and seller take time to look at them. Ultimately, the market place establishes value.

Sometimes the Seller has Unreasonable Expectations. This still doesn't excuse the agent from explaining how appraisers determine value. A home on a storybook street in a desirable area was priced $100,000 too high. When asked why, the agent replied, "I know it's overpriced, but I would have lost the listing to somebody else if I didn't agree to that price." Turns out a home two doors down sold for a high figure, but that home had been meticulously maintained, and it boasted a newly remodeled kitchen with top-of-the-line appliances. By comparison, this home was a fixer, but the seller insisted he could get the same price as his neighbor.

Some sellers and agents consider starting high and reducing later. Studies show that interest in a home typically wanes after a few weeks, so there are fewer buyers for that home when the price falls. Buyers also think there is something wrong with a home that doesn't sell right away or they worry the seller dropped the price because a major defect was discovered. Long days on the market and big price reductions hurt. They hurt the seller, and they often make a buyer wonder how much lower the price could drop. So, a buyer will often offer even less after a price reduction.

In conclusion, choose your agent based on honesty, ethics, experience, competence and marketing, and don't chase after those tossing around the biggest numbers