We all know it's stupid to list a property at a ridiculously high price because --- duh --- listings that don't sell are bad for business. Right? Wrong. If an agent "buys" enough listings he or she can successfully leverage those listings....and use unwitting clients....to make quite a lot of money.
Some agents strategically go after overpriced listings because the more listings they have the more they get from other sellers impressed with their significant listing volume. What the sellers don't understand is they are actually being used by the listing agent who is advertising their properties simply for self-promotion and to pick up buyers.
This practice is a disservice to everyone---the seller who anguishes over the property languishing on the market while losing its value, the buyer who is misled into thinking the listing agent must be a "Super Agent" due to the number of listings they have, and those of us in this business who are committed to delivering the most realistic pricing guidance to our sellers. Isn't that our fiduciary responsibility?
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707.337.1182 | Kirsten@KirstenLindquist.com | SonomaIsHome.com
Pacific Union International & Christie's Great Estates
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Kirsten, it is too bad that there are people standing in line to take advantage of ignorance.
We can only protect our selves and our clients through consumer education.
Taking overpriced listings simply for inventory and exposure is an open door to have it come back and bite your reputation. There is a particular Realtor team in our area who has touted multiple deals over their competition by overpricing and selling to unsuspecting cash buyers... Reputation is now knocking them out of the box.
Thanks for the overpriced listings but no thanks!
Kristen, this approach seems to be counter productive other than having a lot of listing that won't sell. Yes, it is our fiduciary duty. Thanks.
Kirsten, did you run across this situation recently? What do you do to conteract this other agents behavior?
Anthony:
It's not an ususual situation at all. There's not a lot you can do to counteract the other agent's behavior which is rewarded each time they buy another listing. I think sellers should be advised to list with agents who can document a high rate of successful sales....rather than a huge number of unsold listings. I also think sellers need to know that agents who buy listings are not highly regarded by their colleagues...and good agent-to-agent relationships are often what closes a deal.
Hm... looks like you have another good post to write. I would think you reply is a good starter for an advisory post to the consumer.
We reward "good behavior" of Buyer Agents who have Buyers who purchase our short sale listings. "Bad behavior" is .... "discouraged".