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 REALTOR® 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?

Published: September 15, 1999

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.