Bob decides to sell his home. After living in it for years, Bob knows he has accumulated a good deal of equity. The property values have gone up, his mortgage balance has gone down, and Bob has made several home improvements that he knows will increase his home's value. Bob also knows how much his neighbor's home sold for last year, so Bob feels pretty confident that he knows what his home is worth. Like many sellers, Bob schedules appointments with several Realtors to discuss listing his house.
Each agent brings a sales presentation and a Comparative Market Analysis - an estimate of the home's value. But Bob is dismayed when several agents suggest that his home is worth less than he thought! Sure, they back up their numbers with a list of similar homes sold recently, but Bob knows he can get more. Fortunately, an enlightened agent shows up at last. He agrees with Bob's estimate! Heck, he even says it's worth more! And he says he will have no trouble getting Bob that price. Excited, Bob lists his home with the PriceWizard.
Congratulations Bob, you just fell for a dubious sales tactic known as Buying a Listing. What Bob does not realize is that PriceWizard actually knows that Bob's house is not worth the asking price. But PriceWizard understands that the easiest way to get Bob's listing is to agree with Bob. After the house sits on the market unsold for over a month, PriceWizard knows that he can talk Bob into lowering the asking price. The trouble is, the longer Bob's house is on the market, the less interest it will generate among buyers. And after it has been on the market for too long, buyers will conclude that there must be something wrong with it, and offers will become lower and lower. Poor Bob will end up selling his house for less than he could have if he priced it correctly in the beginning. If he only listened to those Realtors who told him the truth...
Why did PriceWizard dupe Bob? For the commission - to beat the other agents who wanted to earn Bob's business the honest way. Why did Bob fall for it? Because he was stubborn. And perhaps greedy. So, how can you avoid falling for the PriceWizard's trick? It's simple - don't pick an agent based on the price he or she recommends. Instead, choose an agent based on his or her reputation, ability, and knowledge. Someone who knows your area, can show you a solid sales plan for listing your home, and who backs up his or her recommendations with facts. Once you pick a Realtor you like and trust, then talk about the price. An honest agent will help you get more money for your home than any PriceWizard ever could.
This publication is for informational purposes only and does not constitute legal or financial advice. All information was obtained from sources deemed
reliable, and while I do not doubt its accuracy, I cannot guarantee it. If your property is listed with another broker, this is not intended as a solicitation.
© 2007, Resulti and its licensors.
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