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Week #8 - To List or not to List PDF Print E-mail
Tuesday, February 17 2009 09:30

 "In most markets around the country there are obviously an astounding amount of active listings.  Locally, where I am in New Jersey, I’ve heard surrounding towns that have up to a 42 month supply of inventory, if no other homes came on the market." writes Scott Friedman for Broker Agent Social.

UFSB Note: Do you know what the current inventory (supply of homes in months) is for Salt Lake County? That is information you should be tracking on a monthly basis. Our Monthly Newsletter that is sent to clients contains this information, so make sure you are reading the newsletter when the proof is sent to you.

 
"Also, in most markets around the country the expiration rate of listings taken is tremendously high.  Again, locally, it was roughly 70%!!  70% of the listings taken in 2008 in my market did NOT sell!! I’m not telling you this for the doom and gloom aspect.  I’m telling you this to show you how you can do your part to help the real estate market, the economy, your sellers and yourself."
 
Friedman goes into detail about a very important aspect of listing homes, DO NOT TAKE OVERPRICED LISTINGS! The point? Overpriced listings cost you time, energy, money and worst of all, a client (and potential future referrals). The end result? "you work your butt off, get stressed, don’t get paid, and ultimately lose the client and any future referrals."
 
"There are many reasons why an agent would take an overpriced listing.  Here are some of those reasons:"
 
  • "Desperate for business, any business - Understandable in these times.  Yet if you consistently go after the business with daily lead generation, you'll have leads and listings and pendings.  You won’t be desperate.  You’ll be able to turn away “business” that won’t actually be business.  And that’s the point: especially in this market, an overpriced listing will NOT sell, so it won’t be business.  It’ll be a headache."
  • "Don’t want the competition to get the listing - Who the heck cares?  You certainly shouldn't.  Other than not wanting another agent to clog the inventory with more unsold listings, why would you care if they decided to take it overpriced?  It’s not going to sell.  If someone wants your trash, who cares?"
  • "It’d be great to have a sign in this neighborhood - I can understand this one, too.  Yet, there are problems with that though process:  First, you’re now only serving your best interests, not your seller’s.  Bad business.  NAR itself has shown that less than 1% of buyers buy the house they call in on.  So, you're only looking to get leads, not neccessarily sell that house.  Second, the normal conversion rate of sign/ad calls to appointments is very low in this industry.  That rate will seem like Mt. Everest when you’re trying to convert buyers calling in on something obviously overpriced!"

Friedman finishes the article talking about some other pitfalls of taking on overpriced listings and how they are simply an exercise in futility.

 

UFSB Take: Remember, our position as a brokerage is to price all homes competively. We certainly do not want you wasting your time, energy and resources just to get a sign in the front yard or to feel like you have business. If you are considering taking an overpriced listing, please come speak with us. We will be happy to give you advice on how to best handle it, how to get it priced right, or other alternatives to bringing in business.

Read the Full Article here

New Business

New Listings

  • 11882 Quarry Ridge Cv, Herriman UT 84096 - $250,000 - MLS# 863841. For: Sale - Jason Carlson

Listing Updates

  • No Changes to any listings this week.

Under Contracts

  • 1736 Lake Run Rd, South Jordan UT 84095 - Seller Side - Jim Goostrey

Closings

  • No New Closings this week.

News

Board Classes

  • New REPC - Top 10 things to Know. Ryan Kirkahm. Martch 5th 9am-Noon. $15\

Board Events

  • Awards Gala - March 6th at 6:00pm at the Rice-Eccles Tower at the U of U. Cost is $30 (for everyone including members). Black-tie formal event.

Client Event

  • We have decided to do a Salt Lake Bee's game Saturday April 11. It is Easter weekend, so we are unsure of the turnout. Doug will update us on pricing and more logistical information in the next few weeks.

 

 
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