So, you might think, "Hey, who cares?" but an agent's reputation is important, especially in tight-knit communities like Lake Oconee. When buyers and sellers sign a contract, their respective agents enter into a fiduciary relationship; respect for each other and cooperation is crucial. So why do agents sabotage themselves? Or do they?
To Secure the Listing and Blow Away the Competition?
As a seller interviews each agent, often the estimate of value creeps upward. Maybe the first agent knows there will be two other agents competing for the listing, so the first agent names an astronomical figure. The second agent, upon hearing the first agent's price, beats it. The third agent comes in higher yet.
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A seller who chooses an agent based on which estimate is highest is the ultimate loser.
Yet almost every seller operates in this manner. It's a shame because so few agents take the time to educate sellers that other factors such as marketing plans and the agent's negotiation abilities are far more important than estimate of value. The comps speak loudly if anybody looks at them. Ultimately, the market place establishes value.
- Sellers often have Unreasonable Expectations.
- This still doesn't excuse the agent from explaining how appraisers determine value. A home came on the market on a storybook street in a desirable area of Sacramento, but it was priced $100,000 too high. When asked why, the agent replied, "I know it's overpriced, but I would have lost the listing to somebody else if I didn't agree to that price." Turns out a home two doors down sold for a high figure, but that home had been meticulously maintained, and it boasted a newly remodeled kitchen with top-of-the-line appliances. By comparison, this home was a fixer, but the seller insisted he could get the same price as his neighbor.
BE AWARE SOME REAL ESTATE AGENTS DON'T CARE IF YOUR OVERPRICED LISTING EVER SELLS!
Free Advertising for the Agent
Every "For Sale" sign advertises the agent's company and the agent. Many signs contain the agent's Web site and cell phone number. Some even sport a large color photograph of the real estate agent.
It's a giant billboard for the agent.
If the home is located on a major thoroughfare, all the better. Probably thousands of drivers pass the sign each day and will see that agent's name. And after the sign post is in the ground, it's not costing that agent anything to leave it there.
- Agents who accept overpriced listings often hope for a quick price reduction.
Even if an agent knows they are taking an overpriced listing, they might be telling themselves that when the home doesn't sell within a few weeks/months, he/she can persuade the seller to lower the price. This justifies his/her actions to go ahead and accept the listing. Except that studies show that interest in a home typically wanes after a few weeks, so there are fewer buyers for that home when the price falls. Buyers also think there is something wrong with a home that doesn't sell right away or they worry the seller dropped the price because a major defect was discovered. Price reductions hurt. They hurt the seller, and they often make a buyer wonder how much lower the price could drop. So, a buyer will often offer even less after a price reduction.
Lake Oconee "DidJa Kno" Advice: Choose your agent based on honesty, ethics, experience, competence and marketing, and don't chase after those tossing around pie-in-the-sky numbers!
See More Information on Properties in the Lake Oconee Market at: LakeOconee.com
Submitted by: Pat Okenica, Lake Oconee RE/MAX
Contact Info: Direct #706-817-9314
pat@lakeoconee.com
www.LakeOconee.com
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