Apr

22

Avoid real estate salespeople that ‘buy listings.’

Filed Under Brampton, Condos, Homes, Real Estate, Sell 

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Here’s the scenario. You’ve decided it’s time to sell your home. After spending a good amount of time cleaning up your house, arranging furniture, and doing a little of your own staging, you’re ready to throw it on the market. You distinctly recall that the house down the street sold for $310,000. But that house didn’t have hardwood floors and a finished basement. Another one sold across the street for $315,000, but that house needs a new roof and the backyard is smaller than yours. So doing some quick calculations in your head, you feel that you could substantially get more for your home.

You decide to call 3 real estate salespeople to your house to interview them for their services. The first two use recent neighbourhood sales and current listings, and provide you with a selling price that really isn’t much more than what houses are selling for. You’re disappointed. You feel the house is worth much more, but these two people stick to their assessments.

The third agent arrives at your home and listens intently to what you say. After you outline all your upgrades and insist on a higher price, the real estate salesperson wholeheartedly agrees to your selling price and takes the listing on the spot. You’re excited because finally you’re able to sell the house at a price you feel is well deserved.

Unfortunately, you’ve just allowed your listing to be bought.

Some real estate salespeople take listings at any price for a number of reasons. They may currently have no activity going, or they intend to take the listing with the sole intent of talking you down to a lower selling price in the immediate future. They know your house will not sell for your asking price.

Understand that there are really only two ways to determine the value of a home: Subjectively and objectively. An objective price is based on current market conditions and recent neighbourhood sales. A subjective price is based on emotions and hearsay. It is of absolutely no benefit to a seller to list his home if it is overpriced. The home will sit on the market for an extended amount of time with little to now showings, and literally no chance of an offer. Why would any buyer view a home that is vastly overpriced in a neighbourhood that is offering comparable homes at significantly less?

If you do decide to list your home, listen carefully to the real estate salespeople that present you with their stats and how they determined the selling price of your home. Work with those that are both honest and realistic in their approach.  Don’t fall for agents that give you over-inflated prices only to appease you. It will only lead to disappointment down the road.

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