Kate Elim, Lake Anna Real Estate Specialist

THE TRUTH DOESN'T ALWAYS PAY.  I have found this to be true especially during this tough real estate market.  It was always true to some extent but a depreciating market increased the number of times I was reminded of this.

One of the backbones of many Realtors business is having a number of listings.  This is something I've heard this told many times during my two decades as an agent.  Unless you are going to work strictly as a Buyer Agent you will no doubt find truth in this statement.

Like many agents I am always interested in good listings.  Good listings mean listing that have a high probability of selling.  To get most listings it requires doing a listing presentation for the home owner(s).  I enjoy doing these.  I know what my strengths are and I know that I have a good shot at getting most properties sold.

However, some sellers do not want to hear the truth.

In fact sometimes when you tell the truth you lose the listing.  You immediately lost the ability to earn the listing commission.  I don't mind if I've lost it to someone else they feel will do a better job.  My disappointment is when my suggested list price is not considered high enough that I have to shake my head in disbelief.  I don't just grab a number out of the air.  I'm disappointed not just for me but for the seller.  Chances are they are not going to have a quick sale and no matter what they say, most do not want their homes languishing on the market only to eventually reduce them over and over again.

Someone might wonder if I come in below market value.  The answer is:  ABSOLUTELY NOT!

One recent example is a house where I suggested a sale price just over the half million dollar mark.  Instead it got listed with someone else for $599,900.  Months go by.  No contract.  Reduction.  Months go by. No contract.  Another reduction.  Still no contract.  Now it is listed below my suggested list price.  Would the owner have been better off to list lower to begin with?  I would certainly think so.  Perhaps he does too.

Could I have done something different in order to change the outcome?

Definitely! I could easily have suggested a much higher list price.  Chances are I would have gotten the listing because, in the example mentioned above, I had been called in to provide advice on fixing up the property months before it was put on the market and continued to do that up until I presented him with my suggested list price.

Did I change my business practice based on losing this listing (or any of the others)?

No!  For me it's better to lose the listing than to do that.  Real estate can be a very stressful business.  I do not believe in knowingly adding to the stress in my life.  Over-priced listings are exactly that...unnecessary stress.

Lesson learned:

Know your market inside and out.  Work at it until you are comfortable with what your gut tells you the value is and then double check the numbers to make sure you are in the ballpark. Stick with the facts and work with those that appreciate your honesty.