Lizette Fitzpatrick, a colleague from Kentucky, writes beautifully about exactly why a Realtor would consider not taking a listing. The public deserves an honest and professional assessment when they ask for the assistance of an experienced agent. After all, if I can't succeed with my own business how would you expect me to succeed with yours? I welcome the opportunity to discuss with potential sellers in the Chapel Hill / Carrboro / Durham market what it will take to sell their home quickly and profitably!
Why would a REALTOR turn down listing your home?
Maybe, It's Nothing Personal...Just Good Business.
A few days ago, I was asked by another REALTOR to take a look at a property out of his MLS area to see if I might be interested in listing it as a referral.
The property was actually a county outside my usual area but, if it were marketable I would be interested.
You never know till you go look and see what is around it.
There are some areas surrounding Lexington and Richmond KY that just take extra time to sell. Even in good times they just take a long time to sell.
I toured the property, but decided it would just not be the right fit for my stable of listings.
(The house picture in my post is not the subject property...just an example)
Factors influencing my decision:
- Too far away (in another county I'm not famular with...never sold a property there).
- The property backed up to a landfill(the tenant said the smell in the winter was pretty strong, not too many people would buy a farm next to a landfill).
- My car would not make it up the steep gravel driveway (we drove up in a front-wheel drive truck and it had trouble getting up the hill).
- House in dire need of repair and not freshly staged (Too many cosmetic repairs needed. A home inspector would find mountains of things to kill a deal with this one).
- Temporary fencing for horses on 15 acres (fencing a farm is expensive for a new owner).
- My cell phone wouldn't work there out in the country (what if I had an emergency?).
I thought it over carefully while I toured it. Since it would be a referral, if I sold it, I have to pay a referral fee to the referring REALTOR. This takes a bite out of my commission if it sells and we make it to closing.
This listing might take years to sell and eat up advertising and gas money. I decided it just might drain my budget right now. We are in a strange economic time.
Now, it's not unusual for me to turn down a listing. It's just the market we are in.
REALTORS work on a commission basis. If we can't sell your home we don't make any money. It's that simple.
To list a home takes advertising money, gas and time. Maybe some REALTORS have a different situation, but I pay for all my advertising. Going into winter, the budget gets tighter.
Gas is more expensive now...so I might not want to list a home that will require a lot of mileage to and from.
Time...I have plenty of that, but a REALTOR's time is just as valuable as an attorneys, doctors or anyone else that gets paid by the hour for services. I make time for what is important and my clients.
You can bet if I have to spend my money to advertise in a slow market, in winter... your house should be in tip top shape and marketable.
It needs to be squeaky clean, polished, staged, freshly painted and looking like a new penny. We have tough competition!
Buyers are walking in and walking out of listings right now. Nice houses are getting showings...but no offers. Some listings are not even getting showings! It's tough for sellers and REALTORS.
I'm all for getting a house sold fast. I have lots of ideas on how to get a home ready to sell.
There are plenty of houses selling now in Central Kentucky. All it takes is a little extra effort in getting one ready to market.
Lizette Fitzpatrick- Principal Broker at Lizette Realty.
#1 featured Kentucky Realtor on Activerain.com and Localism.com.
Publisher/Author for the only Central Kentucky email newsletter on local real estate listings and sold properties, Kentucky relocation, local events, homeowner information and fun!
For more information on Kentucky Horse Farms, Fayette County, Richmond or Lexington KY real estate click on Lizette.us.
Copyright © 2009 By Lizette Fitzpatrick, All Rights Reserved..*Is It Good Business For A REALTOR To Turn Down A Listing? *
It's Simple...When You Have A Great Agent!
SarahGray Lamm is a licensed, full time, residential real estate agent in the Raleigh Durham area of North Carolina. She specializes in serving the real estate needs of home sellers and home buyers in Chapel Hill, Carrboro, Durham and Northern Chatham County.
With over 60,000 hours of experience in NC real estate, SarahGray is proudly associated with Allen Tate Realtors, the Carolinas #1 independent realty company. With exceptional relationships all over the Carolinas and the U.S., SarahGray is able to connect you with other professional Realtors in all areas who will make your search for a new home or your home sale the best experience you have ever had!
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I am not likely to turn down a listing either.... however, if all you said was true... good business decision!!
Sarah...not all homes are in top shape....I always like it when I was called to list a "toilet" because I knew at some point soon, one of my builders would buy it and tear it down....then the new single family, or duplex or triplex or multi or starter home would be built there.....everything has a value....even if the property is worth no more than what the land is worth minus the cost for permitting for tear down & disposal.....I would have taken it, in a heart beat!!!
Jami and Barbara, this is a reblog of a post by Lizette Fitzpatrick and I would take her at her word that this is exactly what happened!
Clearly, the circumstances that would make one reconsider taking a listing would be different in each market and this exact scenario isn't likely in my market. But the principle is the same and her reasoning valid.
Barbara, as for waiting on a builder to pick it up...in the Chapel Hill market it's not so easy to just tear it down and start over due to town requirements depending on where the home is located. Not only that but builders aren't getting loans very easily right now and many are out of the market, not gambling on spec properties.There is also the cumbersome town approval process for a new "project" like you describe...hardly an inexpensive undertaking.
Lizette's points are well considered...backing up to a landfill? No cell phone service? Prohibitively steep driveway? Lack of fencing for what must have been the properties best use? No thank you. I'm in business to make a profit, not just to make money. It's all yours! ;-)