[Music]

good evening so we have the situation right now in the marketplace in the housing marketplace where people are starting to question why their deals aren't going swell you know like for the last two years you list your house and it goes for like three times over asking I'm exaggerating but I mean it's like you're you're done within the first weekend you price whatever you want to cuz somebody's going to pay more than that and and you just go down the road and then maybe you go and buy another house and you get in the same situation where you overpay for a house so that's that's the way it's been for three years now I don't want to get into like overpay as far as look maybe if that's what you thought you should pay you go right ahead I mean I know I mean I had I had buyers that I had to help um buy a house and they wanted that house and so we had to go over asking so I I don't want you to think that I'm I'm criticizing anyone for that but but but it's it's starting to become a situation where real estate agents have to work again and what I mean by that we've had to work very very hard during this situation as far as writing contracts and showing showing houses and then um writing offers and then there's 30 other offers and you don't get the house and so you show more houses and you show we worked very hard for the past three years but what I'm saying is is now we have to work really hard to sell homes and that hadn't been the case as far as you list a house you put it up there and you make sure that it looks somewhat decent and someone will likely Buy that's those days are coming to an end and that's okay this is more what I'm used to as an agent uh so let's get into the get into this this is from Reddit I just wanted to read it and I just wanted to go over um you know kind of my thoughts on it I thought it was interesting so is it normal for your realtor to ask to reduce the price by $50,000 in the first two weeks well that is an interesting headline let's look more into it it says our realtor gave us a recommended price and we accepted it they told us that if we paid for staging that they thought we would get a really good showing with that price and hopefully get into a bidding war so we spent 5,000 on staging also updated painting painted the exterior the color they recommended for selling as opposed to a color we would like plus plus a bunch of other smaller updates oh shoot got to check something not good um so sorry about that I gotta go here so now two weeks later we haven't gotten much interest mostly the people who have toured have said that the layout doesn't work for them one suggested that they'd make an offer for a much lower price because the buyers don't need all the bedrooms and would want to afford to tear down walls and renovate to build larger rooms our realtor thinks that we should lower the price $50,000 to get interest and wants us to do it ASAP so that we will have still have the home staged for showing the thing is if we' known that we'd be looking at $50,000 less we wouldn't have paid for staging I don't know that we would have even moved forward with selling it would have been a very different conversation and we told the realtor up front that we had hard requirements for selling price without leading them to what our price would be so they promised they'd get us a good estimate up front now we feel like we're in the whole more than 10,000 considering pulling the house off the market is this a typical seller experience I've never actually sold a home through a realtor before edit to add information being requested we did not pressure the realtor to list higher we asked them what they thought it would list at then went with that price we also asked them beforehand to be thoughtful about list price because we needed to know what was reasonable to expect in an income so that we could make plans for my parents' living situation they told us that we were going to do that they were going to do a careful market analysis before they got back to us on the list price now this this is bizarre now I don't mean it's bizarre

um not that it couldn't happen but there's so many questions here that we don't have the answers to so here's some of the here's some of the things we don't have the answers to okay one why are you moving okay we get some sort of weird Glimpse here at the end it says so that we could make plans for my parents living situation now I don't know what that means does that mean you need to sell your house so that you could use that income to help your parents but then what where are you living so so that's one of the questions I always like to ask when I meet somebody up front is um first of all because I I figure they're going to be shopping my services to three other agents anyway so might as well get that out of the way that is you know why are you moving because if if you can't give me a good reason why you're moving or you're selling then you're just you're just looking for an estimate for me for free and I don't really have the time for that I mean to be honest so so what is the motivation here why are we why are we selling so we don't know that second thing is we don't know the price if this is a million-dollar house cutting $50,000 off of it is nothing it's nothing hell $100,000 nothing at least in say Louis wouldn't think anything of it I know that sounds crazy but it's it's all kind of a percentage game just as an example I had a house that was they were asking uh 400,000 for it this past summer and it ended up selling for 560,000 that's $160,000 over asking okay did the realtor not do their job there or did they do too good of a job or did it have anything to do with the realer at all so that's questionable the other thing is we're we're going through this the just you know line by line I don't mean to pick at these people they they they admit themselves they're not like sophisticated Sellers and that's okay that's okay but they said they told us that if we paid for staging they thought we'd get a really good showing with that price and hopefully getting to a bidding war so we spent 5,000 on staging also updated painting painted the exterior color they recommended for selling as opposed to a color we would like plus a bunch of other smaller updates very interesting thing so when you see in parenthesis as opposed to a color we would like as as someone's selling a house okay it's not about you and so this leads me to believe that they may have reservations about selling in the in the first place like they just kind of put the market up they put the house on the market for uh just to see what would happen but that doesn't account for the $5,000 on staging now I can get staging for less than two here in St Louis so I'm a little confused why they're all the way uh well I could back then I haven't needed to Stage a house in so long maybe it's but it's not that much more so maybe this is a larger house again it lends Credence to that idea that this is a more expensive property uh it says now two weeks later we haven't gotten much inces well look if you missed the first weekend all right you missed the first weekend and you didn't have many showings then you you you're done you you're no longer going to get the price you were asking it's over like that's that's the way it is and you're definitely not going to have a bidding war now no one's no one's going to come and say oh and so that may be the motivation for dropping the price 50,000 if the house is worth say it's worth I mean say you came in the market $225,000 too much you drop it down 50 you're going to get people to come through the house okay will they make an offer at that number maybe will they get into a bidding war and get up to the 25 more probably not probably not but anyway um it's kind of fascinating so one suggested they'd make an offer for a much lower price because the buyers don't need all the bedrooms and would want to afford to tear down walls and renovate to build large rooms now look I am an experienced liser of property okay of houses and I would just say that whenever someone sends me buyer feedback whenever an agent sends me buyer feedback it's normally BS okay it's normally the house was too expensive for the buyer in the sense that they didn't want to pay what you were asking and rather than tell you like you know hey uh your house is too expensive they come up with some sort of reason that has you know that's going to be the least uh inflammatory possible and let me just tell you real world I one time I told somebody I was like there was a dude uh with a motorcycle doing wheelies in front of the house and my buyers just wanted nothing to do with it okay why would you want to live in a neighborhood with that and that I mean that's that was the fact and I got this nasty email back from the realtor's like what's what's the matter why why can't kids be riding wheelies on their motorcycles down the road and like I don't I'm not interested in arguing with you about why they can't or why they should or I that's that's not where I'm at I'm just telling you why my buyer said no and so ever since then I've I've not been interested in saying anything other than e the buyer found another house or the buyers aren't interested and just move on it's better than it's better than the the the stuff that you have to deal with as an agent so now the thing is that if we'd known that we'd be looking at $50,000 less we wouldn't have paid for staging now look this is monetarily this is a little confusing so you were willing to pay five to make 50 but now you're willing to pay zero to make

nothing the the problem I have with this is is is is something that happens to me often is somebody will come in and they'll call me and they'll say John what do you think this house will go for and I I look at the comps and I look at some of the other houses available I say I think you got to a range probably be around in this area here okay and then I say uh if you do these things I think I can get this number okay right so if you do these things but you know what always happens they don't do those things the sellers don't do those things and then they still want to listed for that high price it's like ah now you could say and fairly John you you're marketing it wrong you're doing the wrong thing by by telling them to do these things for that price when you know they're not going to do it well I don't know some people do some people do listen to you and some people don't you just never know who that's going to be so it says we told the realtor upfront that we had hard requirements for selling price without leading them with what our price would be so they promised to get us a good estimate UPF front now here's my question did you only talk to one real estate agent or did you talk to three real estate agents and take whatever number was the highest cuz it says here like to edit to the information being question we did not pressure the realtor to list higher well if you had three real estate agents and they picked the highest number anyway and you were the one that's called buying the listing by the way it's a it's it's a strategy that's older than time because once you have a house under contract and listed why would you switch agents you've already got it listed it's it's it's it's not a great I mean it's not something I I particularly find enjoyable or something that I want to be involved with but I've definitely lost listings because of it it's I'm quite aware of it so it says uh but just like if you ever thought see here's the thing it says we also asked them beforehand to be thoughtful about the list price because we needed to know what was reasonable to expect an income so we could make plans for my parents living situation but have you ever thought that your real estate agent might just be a a bad real estate agent do you know how many people list houses like terribly as real estate agents like I mean taking pictures with their iPhones and stuff like that for listing pictures I mean it's horrible I mean the idea I mean what makes you think you got a good real estate agent is is my question did they did they just sound you know did they did they say a good game and you just fell for it they told us that they were going to do a careful market analysis before they got back to some L well what are they supposed to say we'll just throw a number on it and see what happens I mean they real estate agents they have to say

something so like we don't know enough we literally don't know enough to know what's going on with this situation we know that you're not getting showings okay and we know that they've asked for now look some real estate agents say it's a price Improvement which I've always thought as garbage it's a price change they low in the price it's not an improvement okay I hate that now you can like it and everything that's fine it's just I always like to try to be honest with my my Sellers and it's like look if we missed on the price then we need to lower the price I don't think that it's wrong the timing to lower the price now you know it says in the first two weeks I definitely don't think that's wrong because look it's obvious that you've missed on price so let's let's go and um and see like what would I do so the first thing I would do is I would uh go and I'd look at a bunch of other houses that are currently for sale in the area with the same characteristics as this home and see what they're selling for if I see comps that are like $100,000 less than what we've listed our house for and we already don't have showings we got to lower the price okay now as far as the uh the staging normally you get staging for like six like six I think I got it for six months last time but maybe I'm wrong so we got an opportunity to remarket this property and reposition this property maybe we take it off the market for a week or two and we get the thing looking much much better um even with the staging maybe maybe there's things that are that are that are not right but but those those are the places where I would start obviously you're wrong on prize okay now as far as what should you do well I don't know your situation right I don't know these people's situation so I don't know I mean are they going to stay in the home and just like eat the 10,000 that they that they've got out and staging and I guess uh painting and what what you know is that option if it's not an option then you've got you're going to have to lower the priz that's all there is to it I feel bad for these people um I was just I was just doing an article about um you know real estate agents it's so easy to be a real estate agent we make too much money all that kind of stuff but then you see articles like this where it seems like these people did not have success with their their listing and I feel bad um who knows it's a it's a wild thing are we going to see more stories uh going forward about how houses haven't sold and how my real estate agent thinks we should lower the price and things of this nature yes yes same like when there was the buying Mania do you remember all the stories where people were upset with or they experiencing buyers remorse with their home in a hot Market it's going to be one one group is going to complain all the time unless it's a very balanced market and right and really it hasn't been a balanced market for years either the buyer buyers have had all the power or the sellers have had all the power and it's just been one thing after another so yeah I just wanted to put that out there you think like hey the market is just just on fire right we should list our house $30,000 more than any house in the neighborhood because we we bought this house and since we're so great everyone else is just going to know that we're great and then and then they'll just pay extra money for it you know it's a great Market it's hot we should just take it Advantage you just need one sell you just need one buyer right you only need

one still got to price it right still got to price it right they've missed they need to reposition the property immediately the agent we don't know if it was a bold move because we don't know what the what the you know asking price of the home is we don't know what kind of home it is but something's got to be done there don't be surprised if you see more stories like this going forward though that's all I have for you tonight thank you for watching thank you for listening and I will catch you on the next one