Two wrongs do not make it right...

I’ve been losing a lot of listing opportunities lately because I won’t play the overpricing game. I work hard to explain the current market to potential sellers, to analyze and position their home in that market and provide plenty of market data to justify my pricing advice. I also alert them to the dangers of finding someone who goes along with their fantasy pricing, just to get the listing; however, the lure of a good lie seems to win the day all too often.

I feel better about being honest and not going along with an ego-inflated starting price, just to get the listing; however, way too many desperate agents in my area seen to be willing to list homes at whatever price the seller wants, just to get the signage exposure. I’m sure that they have plans for talking the seller down on price over time; however, by then the market will have by-passed the house and they will be continually playing catch-up. Have they really served the best interests of the seller by doing that?

I know that the response to this post will be that it’s often better to wait and be the second or third listing agent for sellers like this. By then they have worn themselves down and are usually more realistic about price. Unfortunately, they may also be deep into default by then and headed for a short sale or foreclosure. In the realm of shady practices, I suppose this ethical lapse is relatively minor, compared to some of the other things going on in real estate right now. Still it is that first “little white lie” that puts one on the slippery slope of ethical failure that leads ultimately to the types of real estate fraud that we see in real estate horror stories.

So, I’ll stick to my guns on pricing to the real market and not agree to list at some imaginary market price that the seller might come up with. After all, when they are wrong on price; if I agree with them, that is just another wrong and we still don’t have it right. If we can’t start the relationship on an honest note of mutual agreement and trust, then it’s probably not a relationship worth having. I may lose a few listings, but I sleep well at night.