Spilling The Tea~In Real Estate #3

Dated: September 8 2022

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Real Estate agents use “inside” verbiage when talking to each other. As with any business we speak our own coded language.

Today we will talk about the term “Buying the Listing”. 

Basically straight to the point, what it means is that the agent agrees with the seller on the price of the home and lists it for that price. The seller has a preconceived idea of what their home is worth or what Zillow said it’s worth even though it isn’t. 

The agent who is licensed is usually very knowledgeable on what the house is worth and has spent a few hours doing comparisons on the property. They know exactly what the house is worth but maybe their price that they come up with is lower than what the seller really has in their head.

We’ve all dealt with those adamant sellers. But now the agent is at a crossroads.

1. Be honest with the client and tell them it won’t sell for that price and risk losing it to another agent.

2. Agree to the price the seller wants to list it for and hope that it will sell. If it doesn’t sell then there is a risk of it getting shopworn. (Which is another term realtors use. Just meaning the listing gets old and nobody wants to go see it anymore.) Then usually the price is reduced way below what the value was even in the first place.

Here’s an example: Years ago, I met with a seller who wanted to sell her home for 1.3 million. First the seller met with another agent who said that her home was worth that. When I met with her I showed her the comparisons and the facts on paper and told her that her home will only sell for 1 million. (of course I factored in everything wrong with the house so I could be honest with her. The pink and green marble from Italy in the bathroom and the kitchen was not doing her any favors.) 

The seller decided that her price was right so she did not want to go with me and went with the other agent. The other agent listed the house for 1.3 million and it sat on the market for ONE year with no offers. This client was paying on two other homes, one in San Francisco and one in the Hamptons. In the 12th month the home was listed I noticed that the real estate agent finally got the listing down to 1 million and it sold. At 1 MILLION!

In the end she got $25,000 in commission. The client paid a mortgage on a home she didn’t live in for 12 months. I got nothing except for the satisfaction that I was right in my comparables and held true to myself.

None of us are perfect in doing comparables for sellers but if we are off we should be quick to adjust within at least three or four days if we see there’s slow or no showings.

Lisa Lê

Lisa@lisaleproperties.com

Lisa Lê Properties, A Boutique Experience

 

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Lisa Lê

Lisa was raised on a family farm in Iowa. The many chores that came with farm life taught her that hard work results in rewards that cannot be measured. She moved to the beautiful Northwest in 2002. S....

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