Is it OK to tell a broker you think their listing is WAY overpriced?

Sorry, actually it's overpriced by more than $700K. I'm being generous here.

Posted by: guest at October 19, 2007 6:11 PM

no hope

Posted by: guest at October 19, 2007 6:28 PM

You can tell the broker anything you want. Just keep in mind what you want to get out of that conversation. If you are trying to help them by giving them this info, go for it. If you want to buy the place if they drop the price, don't hold your breath. If you want to keep working with this broker, be gentle or avoid the covnersation entirely. I think this can be told in the right way and the wrong way, and just be outcome focused (for you!!!) when you have this conversation with them.

Chances are, if there is such a huge price differential between what you think it should be and what it's priced, one of you is just flat out wrong, and it's more likely to be you than the seller. I know that everyone is inflating their prices a little, but not to the tune of $700k. That would ultimately just hurt them b/c they can't move the property. So I think you might be underestimating its worth (easy to do in this totally inflated market!).

Posted by: guest at October 19, 2007 6:33 PM

OP here. I would never say I think it's overpriced by a certain amount, nor would I be rude about it. I just don't know whether to smile and nod when asked what I think, and wait it out to see if it drops, or whether it's ok to diplomatically say it's a "bit" too much for the amount of work it needs. Do brokers want honest feedback? Is it ok to mention the comparables on the same block?? Of course I could be the one who's wrong, but this house has been on and off the market for the past year and has not moved at this price.

Posted by: guest at October 19, 2007 6:45 PM

What is the point? What are you trying to accomplish? If you want to buy the house, put in a bid. That's how it works. This isn't dating.

Posted by: guest at October 19, 2007 6:50 PM

You do have to think about this in terms of what you want.

If you want to start a real estate argument with the broker, then just tell him that it's overpriced. He will get defensive and start defending himself.

But, if you see the place, know it's overpriced and express interest but don't put in an offer or do any other flirting with him/her, and then watch, then you might be able to get somewhere.

If it's really overpriced by $700K, it won't move. And eventually the broker will call YOU if you left your information and expressed a little interest.

And you can play hard to get and say that it's a great place but that you don't feel comfortable making an offer based on the list price.

And if it really is that overpriced, then it will still be around when you go in for the kill. Broker contacts you a third time, and you offer him a little over what it's really worth, and present your comps at that time, and be the good guy.

I do know two people who have successfully bought houses like this, both in LIC, not Brooklyn. Both houses were *ridiculously* priced by small real estate agents, and each person played with the real estate agent for the better part of a year.

Posted by: guest at October 19, 2007 6:51 PM

6:50--you really suggest I put in a bid at around $750K below asking? I can't imagine the broker and seller considering that anything less than offensive.

6:51--thanks.

Posted by: guest at October 19, 2007 6:56 PM

If you really want the place, I would just tell the broker your position. Remember, the #1 rule in real estate is to "control the real estate". Meaning that if you sit around and wait for the price to drop, it could easily be snatched up by someone else- and maybe at a really low price comparable to what you would pay.

If the place really has been sitting around on and off for a year, I would be they are going to be willing to at least listen to your feedback. If you show them a genuine interest but explain that in your opinion it is way overpriced and show them comps to back this up, you will then be justified in the offer you put in, at the price you think is right.

In other words, put in an offer if you want the place - at the price you are willing to pay. As 6:50 said, this is not a dating game. You need to control the real estate. If you're not willing to pay the current ask, then really what do you risk by "offending them"? But if you put in a genuine offer and give them a reason why you think this offer is fair, they just might consider it or better yet, agree to the price.

Go for what you want at the terms you think are fair. If they get offended, oh well. Even if they reject your price though, if the place continues to languish and not sell, there's a chance they'll come back to you later - esp. if you tell them to do so if the price drops accordingly.

Good luck!

Posted by: guest at October 19, 2007 7:02 PM

OP- I think 6:50 is right actually. Yes, it may be "offensive" but not if you back it up with why you think that's the right price (comps). If the place hasn't sold in a year, I bet they're already thinking the price is too high.

Posted by: guest at October 19, 2007 7:03 PM

No don't put in a bid 700 below ask, because as previous posters have stated they are probably right and you are probably wrong. Move on.

Posted by: guest at October 19, 2007 7:05 PM

Uh, what I don't understand is, what broker allows a place to sit around for a year without dropping the price to try to move it? Esp. in this market. That is beyond weird and frankly a little fishy.

Posted by: guest at October 19, 2007 7:06 PM

There are actually lots of places that sit around at high prices until they're eventually lowered a bit, if ever. Or they're taken off the market. Anyone remember that really nice house on Wash Park (?) that had been restored and was asking $4 million? It was slowly, very slowly reduced over the course of a year and just closed in June for 1 million less. Then there's that Clinton Hill house that started out at 3.5 over a year ago, and ONLY now has been slashed to 2.7, and is still sitting there. Oh and the Pfizer mansion also. So what does a broker say or do when you show them comps? I've always wondered...

Posted by: guest at October 19, 2007 7:29 PM

I went to Cartier today to pick out a watch for my wife.

I told the saleswoman that the watch I wanted was at least $500 more than I thought it was worth.

She said..oh ok and gave it to me for the price I wanted.

Posted by: guest at October 19, 2007 7:46 PM

Your stupid analogy is pointless. There are houses that sit and sit forever until the prices are dropped. It's what the market will bear, right?

Posted by: guest at October 19, 2007 7:49 PM

Look people, brokers are always the ones asking "what did you think?" after a viewing. I've had brokers email and also call me afterwards to ask what I thought of a house they showed me. Aside from stock answers like "has good bones," "needs work," "great potential", "not for me," I've never touched the issue of price.

Posted by: guest at October 19, 2007 7:56 PM

ok, let me get this straight, you've come to this forum to ask "Is it OK to tell a broker you think their listing is WAY overpriced?"

Now, that is a pretty silly question, IMO.

Yes dear, it's ok, you may tell the broker anything you like and you also have the option of keeping it to yourself!

Such freedom!

Posted by: guest at October 19, 2007 8:04 PM

The broker has no obligation to tell the sellers you said the house was priced too high. But the broker IS obligated to bring them an offer, even a low lowball offer. It's their fiduciary responsibility.

So put in an offer. I don't understand those who are saying it's no use. What's the worst that can happen, they say no? You're a big kid, you can take it.

Posted by: guest at October 19, 2007 8:07 PM

Do your broker a favor and don't bother making a private appointment. Either go see it at the open house or don't see it at all. There is no way any seller would give you it for $700k less than asking. So this is not the house you will buy. Move on with your life.

Posted by: guest at October 19, 2007 8:09 PM

Lots of angry, possibly unemployed, brokers commenting on this post, no?

Posted by: guest at October 19, 2007 8:11 PM

"No don't put in a bid 700 below ask, because as previous posters have stated they are probably right and you are probably wrong. Move on."

wow, great advice. makes tons of sense.

putting in an offer that might get rejected will cost thousands of dollars, so you don't want to do that.

wait, it doesn't cost anything to make an offer so there is nothing to lose? oh.

Posted by: guest at October 19, 2007 8:16 PM

"I told the saleswoman that the watch I wanted was at least $500 more than I thought it was worth.

She said..oh ok and gave it to me for the price I wanted. "

wow, you must have a PHD in economics. this is totally the same situation!

Posted by: guest at October 19, 2007 8:17 PM

Make an offer of what you want to pay. What is the point of telling the broker? Are you open to being convinced that it's worth more than you think? I would talk to the seller. That's me. Using a broker as a liason quickly becomes a that telephone game. If you want the house, decide what it is worth to you and make an offer.If it has been sitting for a long time, the seller may have a sense that the price should be dropped and you may get lucky. Make your case to the seller- be nice and respectful. Find out what they need out of it. Brokers make a mess. It's a common sense conversation. You need a win- win. You have to know their position to negotiate.

Posted by: guest at October 19, 2007 9:12 PM

9:12- you really nailed it. It absolutely has to be a win-win for a deal to happpen. And brokers just create total blindness as to the motivation of the sellers, if not the buyers too. I agree that you really have nothing to lose. Just make an offer and go from there. Believe me, even if they reject your offer initially, you really stand to lose literally NOTHING by making an offer- even a lowball one.

Posted by: guest at October 19, 2007 10:13 PM

I am a part-time broker and property manager. I can tell you that there are many listings on the market right now that are extremely overpriced (in case you haven't noticed). Most of the time, we merely have to follow the owner's wishes in pricing a property. Many owners don't get that the market is softening. Other times though, the broker entices a prospective seller with a fantastical listing price in the hopes that somewhere out there, someone with deep pockets and/or little knowledge of comps will bite. That is the game and I'm sure it's not news to all of you. However, I advise you to make the offer you are comfortable with, even if it's $700K less. I've seen and been part of offers that are well below asking. I was recently instructed by one owner in a prime Brooklyn brownstone area to tell an interested buyer who had visited the property three times (the only buyer to come back more than once) that he'd consider a much lower offer ($790K less) because the owner came to the realization the no one was biting after a few months and that the market was changing. You have nothing to lose by politely making an offer below asking and qualifying it with the reasons for your number. I say do it!

Posted by: guest at October 20, 2007 2:06 PM

Interestingly, we went to an open house today that was laughably overpriced. It was an estate sale but the price tag on the property was absolutely outrageous based on what kind of shape it was in. I thought of this string when we saw the place and was about to tell the broker, but decided against it b/c a) he probably already knew, b/c he was seriously very half hearted in showing us the place- was on the phone most of the time, and b) we are not interested anyway.

But yes, now I am a firm believer that there are properties that are grossly overpriced right now...

Posted by: guest at October 21, 2007 4:55 PM