Since Adam and Eve decided to sell their house, real estate agents have been over-quoting the expected sale price in order to win client’s homes to sell. A rising market, such as we’ve seen recently on the Surf Coast, closes the gap between the agent’s inflated quote and the true market price – but still usually results in a feeling of lost equity for the vendor. At One Agency, we believe that our steady market will bring competitive bidding for accurately priced properties, so we won’t over-inflate the price of your home to win your favour.
The worst-case scenario is when a vendor has selected an agent who has over-quoted to win their business and then proceeded to run an auction campaign. For a vendor to watch on whilst no buyer bids are made on the home they have spent a month or more preparing is not only emotionally stressful, but also detrimental to the success of the sales campaign.
Solution – Select an agent on their selling strategy not the price they quote. The right strategy delivers the right price. Write a clause into the agency agreement where the agent accepts a reduced commission if they fail to achieve the price they quote.
Conditioning is a tactic where the agent sings the praises of a home to get the listing and then systematically delivers the owner negative feedback to get the price down once it’s for sale. Owners are often shocked or disheartened to find their overly positive agent is suddenly giving them negative feedback. Some agents have even been known to tell buyers to use the property’s “faults” as a bargaining tool! This is clearly not working for the vendor.
Solution – Try not to be influenced by the compliments on your home. Listen and evaluate the selling strategy that the agent proposes.
Agent says “I have a buyer”
This is the oldest trick in the book! To try to win your house for sale, the agent says that they “have a buyer that will present a good offer” so there is no need to advertise. Marketing and promotion is crucial in a hot marketplace as we are in right now. It is absolutely critical that the property be fully exposed to 100% of buyers. Selling a ‘secret’ will erode the potential sale price and is just an easy option for the agent to sell your property quickly for less effort.
Solution – Every agent has ‘buyers’, but it is the selling strategy and agent’s ability to negotiate that is important in getting you the best price. Ask the agent how they will achieve the best price for your property.
In summary – tempting as it is to fall for an over-quoting agent’s high price or their compliments on your home, there is no excuse for agents using the ‘list, condition and sell’ method. Agents need to get better at telling the truth, and then representing the vendor with a campaign strategy that discovers the best price.
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