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Sellers: Why pay the price for real estate agents who over promise?

Posted by Byron Miller on July 7, 2016
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FACT: Your home will not sell if it is not priced right.

Buyers often cling to the hope that, despite what the current market evidence is telling us about what houses are selling for, theirs would sell anyway for $20,000-$50,000 more. This is not the seller’s fault entirely – often they have shopped around for agents but settle on the one with the promise of achieving a “higher price”.

The role of an agent is critical because they are in charge of selling your most valuable asset. However, they cannot control what your house sells for.  What they can control is the process of selling your home.

For example, if three-bedroom homes in your area are currently selling for $385,000, it would be a genuine challenge to find a buyer for $420,000. Choosing an agent who promises you a selling price of $425,000 and marketing spend of under $1000 to make that happen is a monumental disappointment waiting to happen.

An agent with industry knowledge and street smarts will not overprice your home just to get the listing.  They will waste your time and force you to relist your home at a reduced price after spending a lot more time on the market than you needed to.

At Palmwoods Real Estate, our average list-to-sell time is 40 days. That’s 50 days less than the average for the area. Why? We use current marketing data to give our sellers a realistic price for their homes. Then, we add the things we can control: Sales Process, Marketing, Service and Negotiation.  It’s a simple science but our formula works because the results speak for themselves.

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How do you know if an agent is over-promising?

Agents who over-promise on selling price MUST show you evidence to back up their claim. Ask for recent property sales figures of the area. The results will speak for themselves.

If you choose the agent with an offer a “higher price”, ensure their marketing plan matches their suggestion and your expectation.  A robust marketing plan should START at $2000. Agents planning on achieving high results must have access to an extensive buyers’ base, national and regional advertising platforms, colour brochures/magazines, professional photography, styling services and advertising boards – to name a few.

Most importantly, agents must supply proof and evidence that the price they list your property at, is achievable and realistic. If they can’t, don’t choose them!

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