Here’s another entry for the Sellers out there.
If you ever hear yourself saying, “Another agent said they’d list our home at a higher price,” I want you to stop for a moment. Let’s make sure you understand what you are saying. Your selection of a listing agent is going to be based on the listing price they are willing to accept versus the best agent to get your home sold.
Hmmm. Well, let me share something with you. I recently asked a very large group of real estate agents why they would take an overpriced listing. Their answers may surprise you…unfortunately, they didn’t surprise me.
- “At least it’s a listing.”
- “I can use it to promote me.
- “I’ll get exposure in the neighborhood.”
- “I’ll wait a few weeks then tell them the market has changed and they need to do a price reduction.”
- “They’ll have no choice and I’ll get to sell the house anyway.”
Notice that the above comments are about the agent and nothing about what is in your best interest.
So, Sellers, if your ego feeds into the incompetency of the agent you hire, then you both deserve each other. It takes zero marketing skills or negotiating skills to take an overpriced listing. In fact, I told these agents that they shouldn’t waste your time or theirs. They should just hand you a blank Listing Agreement and have you fill in the spaces.
Don’t get upset with the agent. You were willing to participate in the problem. You decided to put your home on the market at a price that wouldn’t get it sold. In fact, competent agents love when listings come into the market overpriced. Houses that are overpriced are used to sell listings that are priced at market value.
Let me explain: Let’s say your house is overpriced. Houses similar to yours are priced appropriately at market value. Agents will use your house to help their buyers recognize what a value they are getting in your competition. Ya gotta love it.
If an agent is willing to take your listing at a price that is higher than their suggested listing range, then alarm bells should go off.
A competent real estate agent has a vested interest in suggesting a listing price that positions your home competitively in the marketplace. Why? Agents get paid a percentage of your final selling price. Don’t you think, if a competent and market knowledgeable agent really believed that your house would sell for more, they would suggest the higher range?
Most real estate agents are ethical and take great pride in the services they provide their clients. Unfortunately, as in most industries, you will occasionally find people who are totally self-focused at the expense of others.
The real estate agent who refuses to list your home beyond their suggested listing range is the agent you want to hire.
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