Ever heard this agent brag "Yeah,..........I got $15.4 million in volume!" Wow! That's a lot, isn't it? You must be a successful agent,....the #1 lister in your area.
What does it really mean? It don't mean a thing! I simply means you have 15.4 million worth of listings. It's not $15.4 million in your pocket, it's not $15.4 million on your SALES record.
What I'm trying to say is: listings are liabilities, they are NOT assets. When looking at the number of expired listings each day (in my market), I would say "listings are liabilities and the vast majority of them are doomed from the get-go". I mail expired listings and I take a good look at those properties each and every day. Most of what expires is absolutely beyond belief! When I then look at comps down the street and what they have sold for I can't help but think the listing agent must have pulled the listing price out of a fortune cookie instead of doing a proper CMA. However, I'm sure those agents volumes look impressive and they have a print out hanging somehwere in their cubicle.
Andrea Mills - "Listings are Liabilities, not assets" Copyright 2008 *All Rights Reserved
This article was originally posted on http://sebring.activerain.com/
Wait, you refer the listing to another agent in your office (let's assume that agent takes the listing) but you still advertise it? Where's your pay off? 25% referral fee?
I like the concept. However, I'm the "rookiest" agent in my office, I don't think I could pull off a referral.....
Terry, I heard a seasoned realtor say a while ago "Imagine what would happen if all agents took their overpriced listings off the market". Now going back to what you said, imagine how that would drive the business!!!!!!!!!!!!!!
It seems scary to me to think agents over price as much as they do, just to get a listing... Clients are mad and hurt that the home they payed $150K for is now worth $125K; but you can't let a client dictate the price. We are the experts and the ones who should be explaining the real situation.
Now to the point that a listing is a liability.... I agree. With todays market and the lesser amount of income agents are making you have to look at the cost of marketing a home vs. what your going to make cause it may not be as high if you factor gas prices, advertising costs, housing market...
Hm, I agree with the point that listings translate into signs and signs are exposure. I also agree that overpriced listings are still an opportunity to put out a sign = exposure. However, there is a certain fine line and after the DOM are beyond that fine line, the exposure from the overpriced listing backfires - IMHO.
I remember this one realtor's name from my former life as a SAHM. Mind you, here signs were on the same properties forever and I felt that if I ever wanted to sell a home, she'd be the last one I'd call.
I agree with the point that listings translate into signs and signs are exposure. I also agree that overpriced listings are still an opportunity to put out a sign = exposure. However, there is a certain fine line and after the DOM are beyond that fine line, the exposure from the overpriced listing backfires - IMHO.
I agree 100% with this, plus time and marketing cost if any to try and sell an overpriced listing.