A recently divorced friend called the other day upset because his wife had put their former (now her) homestead on the market for $100,000 more than it was worth.
"How can the realtor do that...? Isn't it Unethical ?
I Can't report her for an ethics/moral/professional violation ?"
The divorced friend had to quit claim the house to his ex-wife and still "has an interest" in the house. He knows that starting at such a ridiculous price will mean that the house will be on the market forever and not only not sell at THAT price...but likely a much lower one than it would have sold at had it been priced correctly in the first place.
If there were Real Estate Police...how many fewer realtors would be in YOUR market...would you be one of them ? As a seller...don't try to set a price...don't list with the realtor who gives you the highest price,...look at the actual SOLD homes in your neighborhood of COMPARABLE homes...it's ever sooo hard to be objective about your own home...ask your best "Devil's Advocate" friend to help you if you don't think you are being objective...or don't like what the realtor is telling you....Ethical realtors wish there WERE Real Estate Police....police your own market...and your listing...price it correctly.
Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS
I'd say that ex-wife doesn't want to sell the home. Probably ex-hubby is paying the mortgage payment. I guess you can't blame the realtor because they may sell other properties when folks call about this overpriced one.
Yup...you can on this one Barb....we have a house listed in far better condition for over $100,000 less...no he isn't paying the mortgage but has first right of refusal if she defaults on the mortgage. The realtor is part time and nearly retired and my guess didn't really care what it the price was.
As an ethics instructor I have to disagree with your post title. There ARE real estate police. We are the police. Along with our code of ethics, in Maryland the law requires licensees to report unethical or illegal behavior. If you don't you are considered guilty also. If we don't self police then we will be policed from outside the industry (even more) and that is not a good thing. I suspect you can contact your local licensing authority and relay the situation. It's one thing if the one spouse is wanting to price the property so it won't sell but that doesn't relieve the Realtor from truthfully representing the value of the property.
In a perfect world Larry that would work....realtors over price all the time and no one here will do anything about that...often times larger listers who will never be "scolded" by their brokerages or boards....
I also am an instructor and I agree with Larry in that we do need to police our self. Our state association president recently had an article in our monthly magazine encouraging members to report all violations. I think most agents just will not take the time, or they are afraid of repercussions.
The penalty for over pricing a home is "no sale" and "long days on market." I haven't read in my code or cannon of ethics that "bad pricing" is a violation. There are agents who will price a home to get the listing and they will price it at what their client wants; even if it does not look favorable in the comps. Agents representing buyers will run their own comps as well as the property history and know right away that a home is over priced. If they have buyers interested in the home and submit an offer you can certainly expect that offer to be low and within the value range of their analysis. Sellers, however, who have unrealistic views of value will most likely reject that low offer and the home will continue to be on the market.
While over pricing is not in the code of ethics....being honest is...and "buying a listing" is not honest...there is no one at least in this market to tell....agents are always free to over price...and you are so right...not sell.