Yes, you heard me right, I am not happy to see so many real estate agents take advantage of you and all the other home sellers out there. When something seems too good to be true, it is too good to be true, period.
I have seen it happen so many times, I wonder if there are still any good agents out there, I am sure they are, but not many. Here is what I am referring to. It is the real estate agent that comes over at your house to have a listing appointment. (To basically discuss with you the strategy of listing your home, and eventually the selling price.) As I said in previous articles, no agent is alike, but let’s pretend that you got three agents that you interviewed. The marketing was the same, the strategy was the same, the communication in the same ballpark, however the price was not.
Two agents bought you $355,000 and $345,000 as the listing price. The third one throws you a number that is music to your ears. $385,000. Sounds awesome to everyone. And after a quick consultation with your spouse, you decide that $385,000 sounds great! You pick that realtor and place the home on the market.
Here how that situation will most likely play out. The home will be on the market for about 30 days and no offer comes through. Your realtor is doing just fine, he is getting noticed, as he has a for sale sign in front of your property. He got a few calls, it was overpriced, and most likely showed those customers other properties. He is basically using your property as bait to “fish” other leads.
Now you get a call from your agent that you need to lower the price, you eventually do lower the price and possible 15 days later you get a lowball offer. You decide that is it waste of time so you decline the offer and continue to look for other buyers. Thirty days later you drop the price again, and get a few offer that still seem low. Since they are the only serious offers in over two months you decide to give it a shot. At the end of the transaction you probably sold the property for $335,000, maybe, maybe $340,000.
This scenario could play over two, four, six or even twelve months. Either way, you have wasted a lot of time, stress and frustration and lost anywhere form $10,000 to 20,000 ($355,000 - $335,000 = $20,000). Because you have used the agent that overpromised on price, you home lost the two weeks period where it was “hot” on the market, became stale, and the buyers were no longer willing to see it or pay a reasonable price for it.
If you were to go with agent A ($355,000) it would probably sell for that amount. With agent B ($345,000) it would probably sell for $345,000 or even $355,000 if it was underpriced. However you ended up with only $335,000. And it is not your fault. The agent has overpromised when he or she knew that it cannot be done. She got the listing, she got the exposure, she got the other leads, and you were left with the short stick.
Here is what you can do to avoid that situation. Have your agent show you the comparable properties, based on which he or she came up with the price. Have the agent explain any price differences between yours and other homes and see if it sound logical. If it does not sound logical, most likely it is not.
I hate the agents that uses you to get ahead. Don’t ever let that happen to you again. Give me a call to discuss your property and get the great idea of the money you can make with your home sale.
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