By Karen D. Friedman | 10.05.20
In real estate, it’s all about getting the listing.
When marketed correctly, listings lead to sales. You have the listing, buyers come to you, they make an offer, and you get paid.
Having the listing is also a great opportunity to capture buyers who may not be represented by another agent.
So, it sounds like a no brainer. Getting listings is the best way to get sales, right?
Well, not all listings are created equal. Sometimes, it’s smarter NOT to take a listing.
Are there really going to be times to walk away from a listing? The answer is “yes.” You’ll save yourself a lot of time and energy knowing the warning signs of a listing that is just not worth it.
Let’s talk about some of those warning signs to look out for.
#1. Divorce During the Real Estate Listing
#2. Homeowners Owe Too Much
#3. Overpriced Real Estate Listing
Here’s another scenario on a hot button topic: an overpriced real estate listing.
You meet with a seller and prepare the sales comparables. You share with the homeowner the price they would receive on the market. But the seller asks you to overprice the listing, substantially.
Now you have a very important decision to make.
Do you take this overpriced listing?
Some agents will take the listing in hopes that having their sign on the yard will lead to other listings.
They don’t realize that taking an overpriced listing can have negative effects. They figure that any listing is a good listing. As we’ve been discussing, this is not the case.
The fact is, most overpriced listings don’t sell. You will spend a lot of time, money and effort on a listing that will just sit on the market. What generally happens is that this overpriced listing turns into an expired listing.
Another negative effect? Your reputation. As a real estate agent, you want to convey to potential sellers that if they list with you, their home will sell fast.
Having expired listings will not instill confidence that you can sell their home quickly.
So are you ready to gamble your good name on the possibility of selling an overpriced listing?
Remember that you are the real estate professional. If a seller is not willing to sell their property at the price based on the numbers, it’s not a listing worth taking.
Final Thoughts on Walking Away from a Real Estate Listing
Yes, we all know that listings are the key to sales. Getting listings will have the buyers coming to you and will lead to a successful real estate career.
Success in real estate doesn’t come from selling as much property as you possibly can but knowing which property to sell.
But we now know that not all listings are smart to take and when it’s smarter to walk away.
So, remember the warning signs:
- DIVORCE – Couples that are splitting will make the whole process messy.
- WHAT’S OWED ON THE PROPERTY – Homes in danger of becoming short sales will lead to a long and stressful transaction.
- OVERPRICED LISTINGS – Listings that don’t sell, will become expireds and negatively impact your reputation.
Look out for them and realize it’s ok to take a pass. You are better off letting some else take on these risky listings.