With real estate professionals running their own businesses, there is a wide variance in the way listing presentations are handled, and some are more professional than others. But there is a trend growing in agent practices that really puzzles me because it is self-defeating and gains no real ground with the seller or the marketplace. The trend is agents taking short term listings.

In many market areas, agents regularly take 30-, 60- and 90-day listings, yet the average time on the market for homes in those markets may be much greater. If your average DOM is 120 days, why on earth would you tell a seller that you can sell his/her home in 90 days?

First of all, this defeats the purpose of the CMA ( comparable market analysis.) This is one of your most important selling tools to demonstrate to the seller what the market conditions are - why would you go against the data? If you are flexible on this point, the seller has no reason to believe that other data on the CMA isn't equally unimportant.

Do these agents truly believe that they can beat the market? Beating the real estate market is like trying to beat the "house" in Las Vegas. What are the odds of doing that? There is a reason why the casinos are so big and opulent -- the casinos do the winning. Taking a listing for less time than your market average is like going to Las Vegas and thinking that you are going to win big. The odds of even a highly skilled agent regularly beating the market are very low.

The reasons why an agent will take a short term listing are many and easy to justify. They think they are appeasing a contract-shy seller and are confident that they will be able to get the listing extended later on. Or, they may think there is a chance that they can sell the home quickly. But, on some level, they know that they can't, and they decide to use the seller for other gains. They will put a sign in the yard to advertise their own names and hold open houses to drum up buyers that they know will probably buy other listings.

But are these strategies really effective for your bottom line? What if your seller demands expensive advertising on top of a short term listing? What if you hold open houses and don't get a buyer? What if your seller refuses to sign an extension and sells the home shortly after your listing expires? You generate the marketing momentum and never see a dime for your trouble.

That kind of gamble doesn't make sense to me.

Don’t let your desire to take the listing interfere with your desire to turn a profit. You have to weigh the risk versus the reward - the gamble versus the payoff. So, what are your options?

Set a standard, based on your market, for length of listings, and stick to it. If a seller is unreasonable about allowing you enough time to market the home, is that the kind of seller you really want? Chances are good that this kind of seller may be unreasonable about other things as well. You will likely run into trouble as soon as you try to price the home, negotiate your commission, and so on.

Tell the seller that a shorter time frame simply isn't possible and be prepared to walk away from the listing if necessary. It’s better to do it now than 90 days from now, when the listing expires. In 90 days you will have invested time, money and emotion. Cut your losses now, at the listing appointment.

Your other option is to have the seller give you a 90-day price for a 90 day listing. A 90-day price is a price that would guarantee a sale within 45 days no matter what happens. Even if swarms of locusts took over your town, or if the region were hit with an earthquake, flood, fire, famine or other Biblical disaster, this home would be attractively priced to sell.

Explain the options to your seller. If s/he wants a short term listing, your only choice is to market the home at a more favorable price. If the seller wants a higher price for the home, s/he must be willing to give you enough time to find the right buyer.

Published: January 18, 1999

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Dirk Zeller is a sought out speaker, celebrated author and CEO of Real Estate Champions. His company trains more than 350,000 Agents worldwide each year through live events, online training, self-study programs, and newsletters. The Real Estate community has embraced and praised his six best-selling books; Your First Year in Real Estate, Success as a Real Estate Agent for Dummies®, The Champion Real Estate Agent, The Champion Real Estate Team, Telephone Sales for Dummies®, Successful Time Management for Dummies®, and over 300 articles in print. To learn more regarding this article, please visit www.realestatechampions.com.