With the current shortage of listings some agents are pushing the limits in a competitive situation. I've several times this month lost listings to agents who took them based on what I would consider "Inflated Pricing Recommendations" to an EXTREME level! Often the Seller believes (approximately 75% of the time) that their home is worth more than it is and the agent should present the facts as they exist, not as the prospect "Wishes" they were. They want to believe their home is worth more than it is - and the agent plays to that. Many Sellers go with the agent presenting the highest price - even if it obviously isn't comparable with sold comparables IN THE SAME NEIGHBORHOOD.
This is called "Buying a Listing" among real estate agents. Sometimes agents also "Buy a Listing" by promising excellent full service marketing at a reduced commission.
Problems -
- The agent does not advertise to the level they should. Their marketing material says one thing - their available budget results in something far less.
- The house doesn't sell - the price is too high.
- The agent goes to the Seller for more price reductions than is acceptable to most within the industry. Price reductions are frequently needed - but they shouldn't be a surprise, and they shouldn't be to an extreme. A request for a 25% price reductions is generally the result of an inflated original list price.
- Listing at an inflated price and then having multiple large price reductions after the home being sold has been on the market for tooooo long can give potential Buyers the wrong impression. You've thought it or heard it - "There must be something wrong with that house!"
Important Lesson -
NEVER, EVER PICK YOUR AGENT
BASED ON THEIR PRICING RECOMMENDATION!
Base it on their marketing program, your impression of the agent - what they bring to the table. How do they take their pictures - a high end camera or a disposable. Is their virtual tour a slide show or does it include panoramic shots? Do they include advertising on specialty websites that cater to your type of home - or just their company website and the bigger websites (almost everyone is on those - what are they doing EXTRA to EARN THEIR COMMISSION?). Are they on social websites? Check them - what kind of "Friends" are they catering to and how recent are their postings? Do they have a blog to pull in Buyers?
Contact me today for an honest and upfront opinion of your home, it's condition, staging suggestions, and where it falls in your market.
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