Picture it... 11 homes listed in this subdivison. It's a beautiful community made up of 92 gorgeous homes. The community is brand new. The developer closings on the first house took place a year ago and the more recent ones were finished 6 months ago. As a matter of fact, the builder still has 3 properties for sale (not listed on the MLS). They're finished, but sitting vacant. In addition there's also a FSBO fighting for attention from would-be buyers. The homes are mostly 2-story beauties with many upgrades. Even the smaller models are eye-catching.
The listings range in prices from $320K to $480K. That high end of the range is pushing it quite a bit as it really should be listed at around $435K tops. The one at $320K is a pre-foreclosure, priced to sell at exactly what the owner paid 11 months ago and it's been on the market exactly 2 months today without going pending yet. Nothing is moving!
Then along comes Bozo and lists his phenomenal house at $589,000! No that's not a typo. He (or his Seller) actually thinks someone out there is going to be umm... shall we say stupid enough to pay a full $125,000 more than the other one just like it that's listed (and has sat for 3 months without selling)? Let me repeat that, $125,000. One hundred and twenty-five thousand dollars. Does anyone other than myself realize how much money that is? At the federal minimum wage of $5.15 it would take a person 11.66 years to earn that kind of money! And that's a bad comparison since the person is expected to actually spend the earnings to live. Have we lost our senses? And get this, the owner bought the house almost 6 months ago at $435k! Does he not realize they will use his own house as a comp on the appraisal? HELLO?? Anybody home?? To add further insult to injury it's been 2 weeks and there are no pictures. This home is so stunning that pictures wouldn't do it justice, I guess (that's sarcasm, in case you didn't catch it).
For those of us who might want to offer the benefit of the doubt and say...
- But Maggie, maybe his house is better. It isn't. Don't argue with me. The builder made them pretty much the same. Upgrades were extras such as a second sink in the master bath for an extra $550.00. How many sinks could he have gotten? Even an Octopus family wouldn't need that many sinks!
- But Maggie, maybe he improved it. What can you possibly do to a brand new house that's already got vaulted ceilings, high-hats, granite counters, cherry wood cabinets, keystone pavers in the driveway, 20 x 20 ceramic tile, etc? OK let's say he did want to make improvements, I still need to interject this, we're in Dade County; where a contractor who shows up when he says he will is as good to have as the very best neurosurgeon. He would have had barely enough time to pull his permits in the 6 months since he bought.
- But Maggie, maybe the agent is just using this listing to get buyer calls. Aha! I knew you would go that route. Wrong again! There are no signs allowed in this community. A 12x12 inch sign may be placed inside the window. How much exposure is that going to provide to anyone? My riders are bigger than that!
- But Maggie, maybe the house really is worth that much money. I'm shaking my head now. If I have a buyer who can afford to spend that kind of money, I would advise him to go where the average home is worth $600K and buy the cheapest home there. Better ROI in anyone's book.
My take on this is pure and simple. The seller is greedy and the agent is clueless. He needs to add a curly red wig and a rubber nose to his business attire. I'm disgusted with these people.
Maggie Dokic, SFR is a licensed real estate broker in the state of Florida selling residential real estate in Miami, Palmetto Bay, Pinecrest, Coral Gables, Gables by the Sea, High Pines, the Redland and other select areas of SW Miami-Dade County.
Maggie has earned her SFR certification to be able to better serve the needs of her customers in today's non-traditional real estate market. SFR is a Short Sale, Foreclosure Resource Specialist. Designees have been trained to understand the highly specialized options available to Sellers facing short sales & foreclosures and Buyers looking to buy them.
For more information on our local real estate market, or to see or sell a home in Miami, Palmetto Bay, Pinecrest, Coral Gables or the Redland, visit my Miami Real Estate blog or contact me at Maggie (at) TheBlogThatAteMiami (dot) com.
The opinions expressed herein, are those of the author, and not necessarily of Keller Williams Realty.
None of this information is to be deemed legal or financial advice. Please contact your attorney or accountant for same.
Maggie, but why don't you really tell us how you feel about that listing agent? It's reverse psychology....they're going to bring people in just because they are curious! I don't understand their thinking, it makes absolutely no sense and don't even think it's worth spending any energy to try to figure it out.
WOW! Call the agent and ask for his rationale and post it. We'd love to hear what his good reasonis.
Everyone has one.
Go git em Maggie, lol.
That has so backfired on so many people here! The house just to our north is an example. They bought it for $395 back in 2005, listed it three months later in the upper 400's. Had two bad renters that beat the snot out of it and now it is listed as a rental, AGAIN! What both sellers and listing agents think when they do this?!?!?!?
Maybe you can show it and he can send you a feedback form :snicker:
Maggie,
Interesting... Seems you have the brain dead agents down there too. These agents set the bar very low... Even the newest rookie can excel against them... Bet if you check, this agent does a whopping 2 or 3 sales per year...
Let us know how it goes!
Maggie,
I think the real question becomes this. Is the listing agent that desperate for a client? Agents need to stop appeasing outrageous sellers' demands and walk away from such ridiculous listings! Enough is enough!
Rhonda Fee
Realtor, ABR, e-Pro
Not only will the agent loose time and money on this dog listing, but what ever reputation they may have had is being ruined. How will anyone take that agent serious.
Hey Maggie - I see it time and time again - had a listing in one of these subdivisions and we were under the new homes just like it and still could not get it sold... why not spend the extra $10,000 and get new was the buyers thoughts.... but I have a question.... what is a high hat? Either we do not have them, or after 12 years of real estate lingo I am having a brain fart.
Same question - what is a high hat?
Clueless agents are everywhere. Earlier this week I posted about a new townhome listed for $359,900 when another in the same complex is $249,900.
Yeah, inquiring minds want to know....what is a "high hat"?
Funny post, funny imagery, not so funny listing agent...this seller won't be laughing all the way to the bank, rather his neighbors are the ones having the last laugh!
Me, too -- High hat???
Maggie, congrats on your star!! VERY good post, reminds us why it does not pay to overprice and you said it with such humor! So, is this your contest submission??? Maybe it ought to be ... !!! :o)
Hi folks. Thanks for stopping by at my ranting party. I must be PMS'ing. oooops. Can I say that on here?
Since so many of you asked....high hats are recessed lighting. I guess other places just call them by their proper term. If your area does, use high hats in your description next time and see if you get any comments. :)
Ines - how I really feel is.. lol I think the only way this guy will get someone in there is if he's hosting an Open House when someone goes to see one of the other listings and people don't know the price upfront.
Ardell - that's not a bad idea. I hadn't thought of that. It might be interesting to hear his take on this. But I guess I can't tell him I blogged about it. Or maybe only tell him after I speak with him. Calling him Bozo and all.....
Laurie - rofl. I'm chomping at the bit already. GRRRR!
Renee - I love that snicker! I get it. hee hee that may not be a bad idea. I have my response already. O-V-E-R-P-R-I-C-E-D.
Patrick - yes, your area doesn't have the market cornered on the idiots. They're all over. We must all deal with them. But this business just seems to get an overabundance of them.
Rhonda - you're right. I actually feel a little bad for this guy. He might be someone who hasn't discovered his backbone yet. Then again, he might just be the type of agent who goes around listing the FSBO's at whatever inflated price they have, knowing that at some point, if they're serious about selling, they'll have to make a price adjustment.
Randy - you're right on the money. Good thing the majority of local folks aren't on AR then as I would be speeding up the demise of his questionable reputation with this post.
Thesa - (high hat response above). Paying a small premium for new seems to get the buyers around here too. Love that brain fart. Every time I hear that expression it makes me laugh.
Kaushik - yes, that's the sad part. I see it everywhere and it doesn't seem to be slowing down any.
Sharon - thanks for stopping by and commenting! I missed that one. I'll make sure to go read it. That difference is even worse percentage wise....egads! Can't wait to hear your take on it.
Deborah - (high hat tabloid above lol) yeah, it's really not so funny. Obviously the seller wants that price. A little educating by the agent was required. Time will educate them both, I guess.
Sarah - this style was a bit different for me. I'm trying out new ones as I go along. Thanks for seeing the humor. I wasn't sure if it sounded like I was just ranting. No, I hadn't thought of using this as my entry. Mark said to keep it positive. Not sure if this would qualify. But I had to get it off my chest I tell ya! (I'm very much looking forward to your entry ::plug for Sarah::)
Danny - hey! No singing today? I did so enjoy that. =) I agree with you. At some workshops I've been to some of the top producers admit that they will take an overpriced listing but ONLY if it's got the price reduction written into the listing agreement. 3 weeks and no showings? BAM! The price comes down.
Hi Maggie,
Great post--I totally agree with your premise. Unfortunately, I see the same phenomena in our local market here. My own sister listed her house way too high. Guess that shows how much influence I had on her!
Chris - even at today's increase in new pool prices (40K in my area) that's insane. It is nUtZ, isn't it? Common sense ain't so common! Thanks for stopping by =)
Diane - lol don't fret that one. I have similar stories with friends and family. Even more insulting ones that I won't admit to. LOL
oooh oooh Jonathan, if you're reading this. I would really love the opportunity to read The Cluetrain Manifesto. Thank you!
Maggie,
Congratulations on your featured post! The Cluetrain Manifesto is on it's way to you!