I base my decision more on the sellers ability to understand it is over priced, we can try their price for a week and then it needs to be priced at market value. When they are firm on their over price, that is when i may decline a listing

I always want to be the last agent at a listing presentation.  I never considered at what percent I would walk. I definitely would have a mark down built into the contract. 

I much prefer to be the second or third agent in on a listing with unrealistic sellers after a home has failed to sell--by then they get real and are ready to sell. I don't have any hard and fast rules at what point I walk away from an overpriced listing--depends on the home, the neighborhood, the sellers' willingness to drop price after a certain point. But typically once it gets 10% or more, I walk. Charlotte tends to price homes very close to market value, so if  you overprice you don't get traffic and sales. All you get is a stale listing.

It depends on the property and how long it has been brewing on the market with an unsuitable price tag.

My offers generally reflect more of what I think it is worth and seldom the asking price.

If they are adamant and will not sign a reduction in price schedule it would be a thank you nfor the opportunity.

I don't take over priced listings ever - I don't want to get a reputation for over pricing

I agree with Nina Hollander - best to walk away if you know it will be overpriced.

Michael,

It is a case by case situation, and it really depends on your relationship with your client.  We know agents who will not take an overpriced listing under any condition, and those who do.  Those who do usually have a great relationship with the seller and an agreement to lower the price.  A

Yeah, no, not taking that one.
And yes - first love, second wife and 3rd listing agent . . .  <3

Hi Michael - We're pretty confident with our CMA's and for most properties, our comfort level is around 5%. Much more than that is going to be an unhappy experience for us and the sellers.

   If a house is easy to comp / CMA, in a cookie-cutter subdivision, then 5 % or 10% is the max.   If the Seller has ordered an appraisal, I won't go over that appraised price.

The thing is that you may get lucky and be in the right place or time when that asking price is negotiable. For everyday something doesn't sell, the seller feels it...You want to be there when they act on it

It depends.

On the property.

On the seller.

On my own sanity.  

Michael J. Perry A well planned CMA has a low to high range taking condition, location, etc. into consideration. Chances of selling above the high end may be a waste of time. Next!

The gap is too great! Don't waste your time. The listing will expire in 6 months and you can try again!

I have not yet seen a magic formula.

That would be too off for me.

It has to be under 2.5% over for me, even at 5% on my average $550K home I sell, is $27,000 over-too high. I don't like to be more than $15K "pushing it", because most will negotiate still on $10-15K over, much more than that and we look out of touch and ridiculous to negotiate with.

Agree with you. The second or third agent usually wins out in these cases. The walk-away does depend on the price point and the differential.

you are right! 

With that price difference, I would too.

I'd have to have a compelling reason to go 10% or more over my best estimate. If I can't get a client on board with my strategy, I'm better off walking away.  I did one a couple years ago for some friends, but we spelled out our planned price reductions and explained why it was a bad idea. Friends don't always make the best clients. We got it sold, but it wrecked my statistics for a while. 

It doesn't work in our area to be higher than 5-10%. The properties will not move or get showings. I move on.

I get worried at 10-15%.  If they insist I'm likely to walk.  In this market though, they may get that price if they wait a few months.

It really depends on the situation and the market conditions, With our rising prices, a list price over comps from the last several months can work

oh, if it were only that easy....there are too many scenarios and factors to even begin to answer that question.....but I wish you well with it....

I don't have a percentage over. If people want to haggle over what they pay me or pretend to know more about the market than I do ... I generally avoid it. The energy it takes working with them can be life-sucking and negative. 

If you can get them to contractually agree to incremental price reductions week over week ... and you feel you can work with them ... that might be a good option for you. 

How motivated do they seem?  Is the listing in an area that will bring you other business?  What's the competition?  Answers to these would be key for whether I would take the listing or not.

Park and reading on this

Most are listed over 30% and expect higher prices. They do not want to even see the sold comp.

It depends on the home.

what Peter Mohylsky said...

The list price recommendation is not necessarily at the CMA price.  For example, you might suggest a list at 25% less than CMA but the seller wants to list at CMA.  Do you walk?

Houses are like water. It will seek its own level with time. The sellers who are overpriced are still trying to recapture the missed opportunity of 2006.

To me, it doesn't matter what the listing price is, I'll offer what I'm willing to pay for it. And if these seller get 10 offers at the $430 to $445 range, they will come to realize it.

It's a judgemnet call but I like to be in the position of #1 competitor. Sometimes it's described as being the next home to sell in that neighborhood. If the price falls close to that criteria it's all good.