Overpricing a Home. Whoa Nelly!
A new agent secured a listing, though it was overpriced. She showed it to home buyers a few weeks later, who called on the sign. They loved it! The home's list price was $250,000. Offer was $227,000.
She became excited about the idea of double-ending the sales transaction. Seller asked for current comps of like-type properties because he thought the offer should have been closer to list price.
The numbers came in lower than the offer.
Overpricing to get a listing can have adverse consequences with a negative outcome. The homeowner relied on the new agent to be the professional and thought she fell short of the expectation.
Seller felt the agent was not looking out for his best interests and refused to allow dual agency. The sale failed due to a breach in trust and the buyers refused to pay more than the home's worth.
Though not appraisers, when taking on a residential listing, agents need to ensure the comparables are similar to the subject property and up-to-date or a disastrous like-type situation like this can occur.
Prior to pricing the home, the new agent should have met with her broker to do a Comparable Market Analysis of similar properties. Also, discussing dual agency up front with the owner, so he was privvy to the concept.
Some situations can be avoided, especially this one. Your thoughts?
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Buying or selling a home in southern Utah? Call me at 435.632.9374 or contact me at wanda@buynsellutah.com to help because Wanda Can!
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