Selling Your Home - Setting the Asking Price Too High - A Series
So you’ve decided to sell your home and have your idea of what you think it's worth. Armed with this you call at least three area Realtors and schedule appointments. And one by one, they stop by, each coming prepared with a "Comparative Market Analysis" and other supportive documentation for setting the asking price of your home.
But, to your anger and disappointment, two of the Realtors have come up with prices that are lower than the figure you had in mind. And although they back up their recommendations with recent sales data of similar homes, you remain convinced your house is worth more.
When you review the third agent’s figures, they are much more in line with your own figures or maybe even higher. "Ah ha," you say, "Now that's more like it!" And you list with the highest "bidding" Realtor and start counting the money you're going to make on the sale. But, have you really just shot yourself in the foot?
"Buying a Listing"
If you’re like many people, you pick Realtor number three. This is an agent who seems willing to listen to your input and work with you. This is an agent that cares about putting the most money in your pocket. This is an agent that is willing to start out at your price and if you need to drop the price later, you can do that easily, right? After all, everyone else does it!
The truth is that you may have just met an agent engaging in a questionable sales practice called "buying a listing." He "bought" the listing by suggesting you might be able to get a higher sales price than the other agents recommended. Most likely, he is quite doubtful that your home will actually sell at that price. The intention from the beginning is to eventually talk you into lowering the price.
Why do some agents "buy" listings this way?
There are basically three reasons. A well-meaning and hard working agent can feel pressure from a homeowner who has an inflated perception of his home’s value and feels uncomfortable "insulting" the seller. Or, the agent simply wants lots and lots of listings to appear to be very popular. On the other hand, there are some agents who engage in this sales practice routinely. However, over-priced homes are a recipe for disaster.
TO BE CONTINUED - What's going on behind the scenes
But, to your anger and disappointment, two of the Realtors have come up with prices that are lower than the figure you had in mind. And although they back up their recommendations with recent sales data of similar homes, you remain convinced your house is worth more.
When you review the third agent’s figures, they are much more in line with your own figures or maybe even higher. "Ah ha," you say, "Now that's more like it!" And you list with the highest "bidding" Realtor and start counting the money you're going to make on the sale. But, have you really just shot yourself in the foot?
"Buying a Listing"
If you’re like many people, you pick Realtor number three. This is an agent who seems willing to listen to your input and work with you. This is an agent that cares about putting the most money in your pocket. This is an agent that is willing to start out at your price and if you need to drop the price later, you can do that easily, right? After all, everyone else does it!
The truth is that you may have just met an agent engaging in a questionable sales practice called "buying a listing." He "bought" the listing by suggesting you might be able to get a higher sales price than the other agents recommended. Most likely, he is quite doubtful that your home will actually sell at that price. The intention from the beginning is to eventually talk you into lowering the price.
Why do some agents "buy" listings this way?
There are basically three reasons. A well-meaning and hard working agent can feel pressure from a homeowner who has an inflated perception of his home’s value and feels uncomfortable "insulting" the seller. Or, the agent simply wants lots and lots of listings to appear to be very popular. On the other hand, there are some agents who engage in this sales practice routinely. However, over-priced homes are a recipe for disaster.
TO BE CONTINUED - What's going on behind the scenes
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