From your research, you probably already know that one of the biggest mistakes that homeowners make when selling a house is to overprice their home. Overpricing a house can cause increased time on the market, lack of buyer interest, a lack of offers which ultimately results in the home failing to sell. However, you may think that this problem may be one reserved to people who price the home themselves without professional assistance such as FSBO sellers. The truth is even home sellers that use real estate agents can have overpriced listings. But, why would a real estate agent purposely put up a listing that they know is overpriced. Here are a few reasons why.
To outbid the competition.
Most real estate agents know that clients are easily taken in by a higher asking price. Basically if a home seller goes to the first agent who tells them that the house should sell for $150,000, and then a second agent tells them it can be sold for $175,000, a lot of people are going to pick the second agent just because of the higher evaluation because they think they will make a bigger profit on the house.
Time and time again, people go with agents who promise the highest sales price, so some agents feel that they need to overprice the listing in order to garner your business. However, there are much better ways of finding a good real estate agent. For instance, ask questions about how long the agent has been selling homes. How much experience has he or she had with selling a house that is similar to yours? What sort of credentials does the agent have? How many listings does he usually juggle at one time while selling? Make sure you pick an agent who has a lot of experience selling your type of home and who has the time to give your home the attention it deserves to effectively market the sale. Many sellers only realize afterwards that the agent has no time for them, does not have the effective experience necessary, or they frankly do not like working with the person in particular. A good relationship will make selling a house go a lot smoother.
To attract other clients.
Certainly not all agents are like this, but some agents are more interested in their business than your home in particular. They will use your home as free advertising to advertise themselves. For example, it has been known in recent years that open houses have a very poor return rate when it comes to receiving home offers. However, open houses are a great way for agents to meet potential buyers that they can turn into clients by meeting them and introducing what the agent has to offer.
Many newspaper ads can run with your home listed for sale but without any details about the home except the agent's phone number. In this way, interested buyers cannot receive any information without asking the agent, and this is another opportunity for the agent to introduce himself as help. With the yard sign on the front lawn, it is free advertising day and night showing off the agent's name and phone number. Some even have a large picture of the agent's face rather than any details about the size or number of bedrooms the house has. Thus, be on the lookout for this sort of behavior and pick an agent who is serious about selling your home, not themselves.
Talk You Down
As we talked about earlier there are so many sellers that only base their pick on which agent says they can sell the house for the highest amount that it can be hard to get business any other way. You also have some sellers that think their house is worth a certain price, and will not even think about using an agent that doesn't agree with that number. After you sign the agreement with the agent they are hoping that you will rethink the price of your home to a lower number once it hasn't sold for a period of time. This will cause you both to miss the chance to sell a house quick because it was priced right from the start.
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