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I helped my parents sell their house a while ago. Their agent asked me what the lowest we'd go was and wouldn't you know it, she came back with an offer a few days later for that exact amount. Yep, pretty sure she told the other agent what our bottom line was. So much for good faith. Agents aren't too far from car salesman. Some agents.
And that's also why I don't my clients to give me their "number". If I don't know if I can't even subconsciously guide someone that way. It is ironic how often that "number" is where you end up.
Would you decline a listing if the prospective client required to list low to get attention?
Legit: A listing is nothing but a solicitation for offers.
The listing price is not "The Price."
I would tell them I think it is a terrible strategy, but if they want to take the risk to lose money, it is their money to lose.
Out here in order to be on our MLS, the seller is agreeing in the MLS contract that they sign that they are willing to sell the house at the price listed on the MLS. So if someone came in with a cash offer, no inspections, they are agreeing to sell it at the price listed on the MLS. Our listing agreements also state they agree to sell it at that price.
I would tell them I think it is a terrible strategy, but if they want to take the risk to lose money, it is their money to lose.
Out here in order to be on our MLS, the seller is agreeing in the MLS contract that they sign that they are willing to sell the house at the price listed on the MLS. So if someone came in with a cash offer, no inspections, they are agreeing to sell it at the price listed on the MLS. Our listing agreements also state they agree to sell it at that price.
I assume your MLS contracts don't require that?
Not at all, to my current knowledge.
I haven't read the MLS requirements in detail for some time, and haven't had access since 9/30/2022, but I doubt there has been a change. And, legally in NC, as I mentioned, a listing is "a solicitation for Offers." "The Price is not THE Price."
When I last read the MLS rules, IF a seller declined to accept an offer at list price, the listing agent had to "notify" other MLS members of that fact, and the method of notice was not defined. Maybe in "Agent Remarks?"
I never saw it done, however.
Of course, focusing on price alone, and holding sellers to that term of the MLS listing only would be short-sighted. Plenty of other stipulations and contingencies blow up deals before they get off the ground.
FWIW, I think IF the terms meet the Seller's price and terms as stated in the listing, the seller should sell. But, that is not the case in regards to the rules.
I have met a LOT of real estate agents, and I agree with that.
I don't think I ever asked a seller what was the lowest offer they would accept. Agent should present the offer(s) to the sellers, list the term details and the strengths and weaknesses. Make recommendations, and the seller decides.
It is really that simple, and often the easy part of getting to contract.
Yes to finish the story. I tried to counter and got the "best and final" within 5 minutes. I don't believe she acted in good faith. I don't have proof of course, but I'll say the number I gave was an odd number, not a round number like 200k or 300k.
Yes to finish the story. I tried to counter and got the "best and final" within 5 minutes. I don't believe she acted in good faith. I don't have proof of course, but I'll say the number I gave was an odd number, not a round number like 200k or 300k.
This reminds me of a loan I lost today....a preapproval, not under contract.
He calls me, "so and so can give me xx%, can you beat that?" I tell him it's pointless to shop for a mortgage for best price if you do not have a property. I could give him a rate 1% below market and he would not know if that's real or not.
He's gone radio silent and that's okay. See, I realized even though I did a little paperwork, I never really had the loan to lose.
Sounds like the OP's agent is in the same boat. She's going to lose a listing she never really had.
I would tell them I think it is a terrible strategy, but if they want to take the risk to lose money, it is their money to lose.
Out here in order to be on our MLS, the seller is agreeing in the MLS contract that they sign that they are willing to sell the house at the price listed on the MLS. So if someone came in with a cash offer, no inspections, they are agreeing to sell it at the price listed on the MLS. Our listing agreements also state they agree to sell it at that price.
I assume your MLS contracts don't require that?
I'd be curious to read the actual wording of your MLS contracts and listing agreements. Certainly, a contract can obligate them to pay a commission if a certain full price (and terms) offer is received, but a brokerage can't require them to sell--regardless of the price offered. Being "willing to sell" and actually selling are very different. They may expect that they would sell at a certain price but they aren't prohibited from changing their mind. A brokerage isn't a party to the sales agreement so, from what you have written, it sounds like your MLS contracts and listing agreements may be overstepping their bounds, IMHO.
Because the OP was UNWILLING to accept that lower list price amount. It is one thing to list at a lower price than you think you might get if your seller is willing to accept that lower price if you are wrong. It is another thing to list at a lower price than you think you might get if your seller is unwilling to accept that lower price if you are wrong.
Listing at a lower price than your seller is willing to accept makes absolutely no sense. That is false advertising. I 100% stand by my comment, and I find it highly unethical to do so.
Price is a marketing tool. Sometimes it's effective and achieves the goal and sometimes not. To me, it's not significantly different than when a seller wants to list at an astronomically high price "just to see what happens." I don't take over priced listings because you'll never get an offer. I will take an underpriced listing because you'll discover the true market value in that situation. If the value is something the seller is wiling to accept is another issue.
Quote:
Originally Posted by beer belly
No CMA shown to justify 10% increase.....no listing contract viewed or signed either.
That doesn't inspire trust.
Quote:
Originally Posted by CamThomas
I helped my parents sell their house a while ago. Their agent asked me what the lowest we'd go was and wouldn't you know it, she came back with an offer a few days later for that exact amount. Yep, pretty sure she told the other agent what our bottom line was. So much for good faith. Agents aren't too far from car salesman. Some agents.
That definitely smells fishy. I'm glad you qualified that at the end with "some agents."
Quote:
Originally Posted by Brandon Hoffman
And that's also why I don't my clients to give me their "number". If I don't know if I can't even subconsciously guide someone that way. It is ironic how often that "number" is where you end up.
In almost 20 years of doing this . . . I don't think I've ever asked a client for their bottom line. I give them an expected sale price and I ask "would that work for you?" I just want to know if they're willing to sell at what the market is likely to bear.
Quote:
Originally Posted by Silverfall
I would tell them I think it is a terrible strategy, but if they want to take the risk to lose money, it is their money to lose.
How are they losing money?
Quote:
Originally Posted by Silverfall
Out here in order to be on our MLS, the seller is agreeing in the MLS contract that they sign that they are willing to sell the house at the price listed on the MLS. So if someone came in with a cash offer, no inspections, they are agreeing to sell it at the price listed on the MLS. Our listing agreements also state they agree to sell it at that price.
First off, I find it hard to believe that your MLS can legally compel a seller to sign a sale contract and a deed.
Seems odd! What if suddenly the seller's situation changes and they don't want to sell anymore and an offer comes in before they can pull the listing? Doesn't seem right to me.
Also . . . does your MLS require a closing date in the listing? If not how can they compel a seller to take an offer. All they have to say is "the terms don't work for me." Yes, you can get a list price offer that's totally clean and closing in two weeks but . . . what if the seller says "this offer doesn't work for me. I wanted to close on 10/25/2027 and I need a 30 day rent back after that."
Quote:
Originally Posted by Silverfall
I assume your MLS contracts don't require that?
Our MLS doesn't provide forms with the exception of a form allowing us to withhold our listings from MLS and another one allowing us to delay the start of showings and that's basically it.
Quote:
Originally Posted by jackmichigan
I'd be curious to read the actual wording of your MLS contracts and listing agreements. Certainly, a contract can obligate them to pay a commission if a certain full price (and terms) offer is received, but a brokerage can't require them to sell--regardless of the price offered. Being "willing to sell" and actually selling are very different. They may expect that they would sell at a certain price but they aren't prohibited from changing their mind. A brokerage isn't a party to the sales agreement so, from what you have written, it sounds like your MLS contracts and listing agreements may be overstepping their bounds, IMHO.
Me too. Seems odd that someone could compel a seller to accept a contract that doesn't necessarily work for them.
Our MLS doesn't provide forms with the exception of a form allowing us to withhold our listings from MLS and another one allowing us to delay the start of showings and that's basically it.
....
Someone at your firm/market center signed a contract between the firm and the MLS, agreeing to abide by the MLS rules and regs.
Someone at your firm/market center signed a contract between the firm and the MLS, agreeing to abide by the MLS rules and regs.
Ah yes. Add that form to the list I guess although I was really just considering forms used in transactions which they do not for the most provide.
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