I took photos for some people I now consider my friends about a month back who were listed with another agent. And please if you visit that link, don’t let the rage here spill over into there in the comment. This is the Agent Break Room Blog for me, the other is kinda my Front Desk Agent On Duty Go Fun Happy Blog.
The starting price/CMA was $534,900.
Offer at $450,000 declined at agents suggestion.
Cut to $499,000.
Cut to $469,000. Getting good showings, but no offer as yet.
I come in to take photos. Agent suggests a fire sale open house price of $449,000.
Offer accepted the day after I finish shooting, before photos are uploaded to the MLS.
Time passes until closing day…
Final sales price revealed on MLS… $430,000.
Are you FLUFFY BUNNIES kidding me?!? Whiskey Tango Foxtrot…
So the listing agents CMA was only 24.4% off the final sales price. Awesome.
The agent suggested turning down a $450,000 offer but the sellers end up having to take a $430,000. Again awesome.
I know this is all basically none of my business, and I know they just wanted the transaction over, but I’m upset that my photos didn’t get the chance to save them a suitcase of money on the sale price.
Oh and the zestimate… last time I checked it was $473,000 or something. I would have stayed priced at $469,000 and tried the photos.
Zillow 1 — Realtor Slime 0
Maybe we should start trusting the software a little more…
January 5, 2008 at 3:25 pm
Nice example of “chasing the market.”
Whiskey Tango Foxtrot … Lemon Onion Lemon!!!
January 5, 2008 at 3:28 pm
Not really chasing Mariana, total days on market was 107. It did drop a tad Sept-Dec, but not 24.4%.
January 5, 2008 at 3:33 pm
I guess I mean “chasing” by not accepting the $450k offer and selling for the $430k price. THat is how overpricing games usually end up.
We had a listing a few years back that the owner refused to take a market value offer in the first few months of the listing – against our recommendation TO take it. 2 years and 6 RE agents later, it sold for $100k less than that original offer.
January 5, 2008 at 3:59 pm
I agree that over pricing usually ends up in those “gah we should taken that first offer” RE Moments.
But if the agent hands over a 25 page CMA saying the house is worth $535k and the first offer is $450k, and the agent says “you can get lots more than $450k” and the seller trusts the agent and turns it down… well I kinda blame the agent.
I was taught that “the first offer, negotiated to it’s highest point, is usually the best offer the seller will ever get”.
January 5, 2008 at 6:05 pm
I completely agree. Your specific incidence was DEFINITELY the agents fault … the agent wound up costing them $20k.
January 5, 2008 at 8:41 pm
I read your other post this morning and thought it sounded a little too “happy and nice!” WTF for sure! The other agent just waited until they were desperate and sick of being on the market.
Karma will make up for it eventually!
January 5, 2008 at 10:34 pm
We have a listing now where the owners turned down an offer – ended up renting it for 6 months and we now have it listed below the offer price. Sometimes the customer wants to play hard ball and they end up loosing more than their minds.
January 5, 2008 at 11:29 pm
Why do you say it was the realtor who is the bad guy in this, it is the seller who makes the decision. Zillow 1 Homeowner 0 Agent –
January 6, 2008 at 4:18 pm
Unfortunately Benn the Realtor Code of Ethics, plus my brokers request prevents me from discussing all the details I know of this transaction.
Lets just say I’m finding this transaction a rich vein to mine for consumer orientated posts that will be spread out over a few months.
I do agree that the seller makes the decision. Mostly we’re used to pig headed sellers resisting our pleading to take the offer.