Sometimes a seller seems to give you no choice but to overprice the home in order to get the listing. Surely your integrity tells you to walk away from the listing, but in a hot seller's market when listings are at a premium, your pride may cost you more than you can afford. How can you get the listing and look yourself in the mirror, too? Chris Newell, a Milton, Ontario REALTORŪ is at such a crossroads. He has an opportunity to get the listing for four properties (averaging $220,000 each) that are being offered by an investor, but in his area's hot seller's market, other competing brokers are suggesting to price the properties more than $50,000 above comparables. Newell wants to price them $20,000 above comparables, but he knows he risks losing the listings if he sticks to his guns. "I've done the CMA's, based on square footage, other sales, assessed value for property taxes, sq.ft. of the lot, and every other way I can think of," says Newell. "With various comparison methods that I used, the comparisons say list at $220,000. I'm saying list at $240,000, and the others are saying list between $270,000 & $280,000." Newell also explained to the seller that the property not only has to be sold to buyers, but also to the bank/appraiser and the rest of the real estate community. "I'm not trying to get a listing," says Newell, "I want to get the houses sold. There's a big difference." Newell has several options open to him. He can hold firm on his evaluation. He can offer to list the properties with an automatic reduction built in as the properties go unsold. He can offer to list at his competitor's prices and ask to extend the listing period. Or, he can walk away from the listing. He considered walking away. But it was four listings, not one. The costs of carrying the listings was reduced by a three fourths. He knew he could afford to carry the listings a long time if they remained unsold. He debated the Realtor logic - that it's good to have a sign in the yard. But what about the negative effect of a non-sale-listing on his reputation? Newell thought the odds of selling the properties were good, but since the investor/seller was unmoved by the comparables, time on the market, original list price, etc., then he needed another strategy. The other competitors were strong on listing price, but how much did they stress sales price? Sensing the other agents' weakness, Newell went back to the seller with the suggestion that they agree to a long listing period, with price reductions agreed to on a monthly basis. He asked the seller one question - "Joe, the other Realtors have told you how much to list your properties for, but did they tell you how much they would sell for? You see, Joe, I don't want to just list these properties; I want to sell them, just as you do." Joe was surprised, because after thinking about it, none of the other Realtors were very specific about the sale prices. He said he would let Newell know on Saturday if he gets the listings. After making his case, Newell has a few days to ponder while the seller makes his decision. As Saturday nears, Newell and the other competitors will ask, "Is there anything I could have done differently?" What do you think? Will Newell get the listings? PART II: Try Other Strategies Besides Overpricing the Listings