Tony and Suzanne,

You have great answers here, especially Sandy Padula and Norm Padula, JD, GRI in terms of getting the reduction in writing.  We have agent clients who only take listings at the "right" price.  That is their way of operating and they are very successful

Like  with everything else there are always exceptions.  Some luxury agents will take an overpriced listing just because the seller insists that they "try" it this way.  And high end successful agents who have quite a few listings aquiesce to these demands.  Thse sellers don't have to sell the property, they have plenty of money.

The costs are minimal as these are advertised with the rest of their inventory which is well priced.  When we asked, why do this?  The reply was, "sometimes, we have been surprised that it does sell at that price because, someone really wants that property.!"  

Case in point, the Playboy mansion is priced at 200 million.  This is where the "bigger fool" theory of selling comes into play...A

I don't have the luxury of pricing being an exact science in my market.  Rarely are one of my listings going to find a comparable that has sold or even one that is still active.    We have had appraisers come in pre-list and can have them several 100's of thousands apart. 
My Sellers are aware that their showings will be fewer and further apart than some cookie cutter homes and that it will take considerably longer to find the Buyer; and they're usually overseas.  They understand the market very well. 

I just sold one that has been listed with me for 2.5 years and it sold at full asking price, cash closing in 30 days.   The Seller was surprised it sold "so fast!"

We pretty much slug it out upfront. However, when I have to go along, yes we do discuss lowering if no response

The situation would need to be extra special. We have done it, but have also insisted on scheduled price reductions in writing.

Tony and Suzanne Marriott, Associate Brokers I don't take over priced listings any more. They are just expensive overhead. Even though the property is over priced, it is the agent's fault if it doesn't sell. I don't need the hassle. As far as agreeing to a Listing Agreement to a pre-determined price reduction, get the seller to sign off on it at the listing. Sellers have selective amnesia when it comes to reducing the price at a later date.

Tony and Suzanne Marriott, Associate Brokers - taking 'overpriced' listings with a condition to adjust the price if there are no showings in 10 days or no offers after 10 showings is something that one should use. May be, little flexibility in the standards, perhaps - but need to adjust the price, knowing that it is overpriced listing is must.

it depends on the market and how overpriced.... if it's within a reasonable range and the seller acknowledges that once showing stop or slow significantly, the price will drop, then we will take it...

I do not know your definition of 'OVER PRICED."

Many agents have suggested my listing was over priced as I sold that property for 17% above calculated value and 25% above their suggest selling price.

Do I take listing with the full intent of price reductions. Of course.

Many buyers put a property on ''watch" looking for an indication of being negotiable. So, I make that happen.

No, I do not make a seller commit to a schedule of price reductions. I let the market response data drive those issues. L1 +L2 showing compared to monthly sales is the control factor.

If the seller creates a situation where there can exist no benefit for me or means to recoup my time, effort and resources, I do know exactly what to do.

We've only done this when it' been a referral. We like to price it"right" from the start to get the most exposure and interest as qucikly as possible.

i wouldnt unless, the listing was prominent , something that would help my overall exposure and contribute to the bottom line even thou this one likely is a bust. consumers will often blame the agent for overpriced.

not frequently.  This week however I had a seller turn down was a really great offer.

They sign the predated price reduction addendum at the same time as the listing in my case.

I have if I feel that I can talk some sense into the seller in the near future

There is an addendum used for all properties to help get the price lowered.

Over priced will start in two weeks and then monthly.

In a good market, I will take an overpriced listing with a one year listing agreement and with the written notice to the seller that I believe they have overpriced it.

I don't. Not to brag but I have wrong once over the last 8 years. Once you give into unreasonable demands then you are reduced to a commodity and anything that goes wrong is your fault and then when a real offer comes in, your opinion is not respected. 

I always have the discussion on why I feel a certain price would be the smart one to list at - usually on the lower end of the window. I try hard to convince them the asking price is not a sales price, but just a marketing price to attract potential buyers in. Usually they understand, but sometimes not. If not, I will never lose a listing unless their number is so irrational it will make me look silly. I also do't put reductions into the LA because it's hard to know exactly what it might be reduced to. I like to leave that open and I've never had a problem. 

I have done that, but without scheduled reductions it can backfire. I have also lost listings to agents that were willing to overprice at outset, only to see them sold much, much later at my lowest price range.

We are launching one next week $4.25M and seller won't even allow mls.  Sothebys Zillow and Trulia marketing only.  Goes against my regular listing standards however the summer in La Jolla does bring in outside money that could fall in love with the view.  Huge gamble but many listings over $3.5M in San Diego are. 

I used to do that until sellers no longer held up to their part of the agreement so I no longer take these listings. After they refuse to lower price, there is the 'they can always make an offer' segment. 

I like to price it"right" from the start while obtaining the most exposure and interest as possible! Rarely would I agree to start the pricing where I don't agree.

If it's not too far over I will. But I discuss putting a planned price reduction strategy in place, and even ask some to sign a listing amendment showing new price and dates price will be dropped.

There are always exceptions to the rules but the practice of taking over priced listing can create many unproductive efforts and expenses. Time and money can be better used when focusing on realistic expectations.

I have only done this a couple of times and did have an agreement in writing for a price reduction. I want to get it right upfront

  Not something we like but we have done it with the stipulation we drop the price in 30 days.

That's exactly how we do it, when a seller wants to 'test the market' over our objections. "Price to be automatically reduced by x amount should Property remain unsold by x date."

There's a formula I use that offers a range of limitation. Outside of that range I walk away but will also implement a multi-faceted price structure when within range. Time is money still applies to all livelihood issues and I cannot afford to waste it! 

I've only taken 3 over-priced listings in my 17 year career. The circumstances were: 1. (2000)I was new and nervous, 2. (2004)My first listing in San Diego 3. (2013) A friend begged me to try, to avoid a short sale.

Based on the fact that none of those 3 sold and are my only expired listings in my career, I'd never do it again. I lost a listing last year that would have been over priced, being true to policy. But, having been there, if you were going to, I'd recommend 2 things: 1. What Tony and Suzanne Marriott, Associate Brokers suggest above and that the seller pays for all the marketing during the over priced period, since it will be a waste of money.

In buyer markets, I have gone with a price, but put into the listing contract a date we will reduce if no offer is received.

I don't ever take overpriced listings intentionally but have overpriced them and regretted it.

I really avoid over-priced listings like the plague. They are always a problem. But if the seller is a good/former client, I will take it only under the arrangement you described. And then a lot does depend on how much over-priced the listing is.

I try not to.  Having pre-set price reductions may lead the seller to think you didn't do anything during the higher priced time.

The listing price determines the commission charges. If it is high I charge higher commission or I give it to a team member.

If they are in the market value range I will take them. If grossly overpriced, I will not. Last year a seller wanted to list at 25% over the top of the range and I said it was a waste of her and my time. I passed on the listing and the last I checked it was priced at exactly I told her. But after 6 months it probably wouldn't get that price. It is an omen that sellers don't trust you and want to do it their way so I choose to not load my plate with this type of seller. 

Not in the listing agreement. I go in with a plan, a CMA and nicely say that I will market your home to the best of my ability. I will show how high above market value the property is and then show the range in where they should be. I also say that with that understanding, I will gladly market your home to sell. In our market we have a lot of families on the verge of short sale because home prices have not held steady. Sometimes the only way they can sell the house at fair market is to be priced higher. 

yes

Depends on the property and the situation.

Tony and Suzanne - Who is to really say what price is considered over priced compared to a list price that is reasonable? Pricing is not an exact science.

I saw a listing that was priced over $60k higher than any other in that neighborhood, and was better than most, but certainly not $60k better, or at least that's what the comps suggested. My buyers made an offer that was significantly less than list, and the sellers did not accept the offer. Within a couple of days, the seller got a full-price offer. For me and my buyers, the home was at least $30k over priced, but to another buyer, paying $60k more than any other home in that neighborhood was just the right price.

I provide my analysis, offer a range where I think the home should be priced, and more often than not, the sellers will want to list within that range. If they don't, I will let them know that I will try it at their price, but they need to be open to price reductions if they really want to sell. Sometimes people don't need to sell, but will sell if someone is willing to pay them what they want.