Mistakes Sellers Make – Part One
Choosing an Agent based on the Highest Price
When pricing your home, it is only natural to want to get the highest price possible. Often time’s home owners are trying to pay off other debt and trying to buy “up” in their market, so getting the best price possible for their current home is the way they approach that.
A seller’s financial needs do not dictate asking price though, and when they DO, there are problems that naturally arise out of that.
If a Seller over prices their home, it puts them behind the 8 ball and then they end up trying to chase the market. A Seller should not be pricing their home in the first place.
Problems occur when unsuspecting sellers are interviewing a few Agents to see what they think on price. Well-meaning Agents will come in and make valid suggestions on pricing and presentation, with the hopes that their honesty and good business practice will shine through.
And it really should but, what ends up happening is that the home owner gets caught up in the HIGHEST price spoken because of their financial needs dictating the price.
So they chose the Agent that priced their home higher “just to get the listing” and they end up losing in wasted market time, lost buyers, frustration and extra carrying costs, Sometimes for months, locked into a contract, and sometimes, carrying 2 homes.
The Seller’s always blame the Agent for not being able to sell the house, however the Agent knew that it wouldn’t sell at that price and that reductions would be in order. That being said as Realtors, we are bound to obey a Seller’s lawful instructions. So while it is not unlawful to list at too high a price, it is costly in the end.
This is an unfortunate reality of my industry (yes I am a licensed Realtor) however, it can be avoided if the seller takes responsibility too and they hear what all Agents are saying.
Sellers also need to put their financial needs aside and price according to what the market says their house is worth, not what they “feel” it’s worth. The reality is that Buyers determine what a house is worth, not a seller, contrary to popular belief.
Sellers need to be making wise financial decisions when accepting a price given by an Agent and they need to keep a proper perspective when they have other financial issues that may try to drive their choices.
Choosing an Agent based on the highest price is a sure fire way to end up losing more in the long run.
In addition to proper pricing, Staging a home brings in better offers than not staging it, So clean, repair and stage your home, price it correctly with an Honest and Integrity based Agent, and see results fast. You will be glad you did!