“I’ll List Your House for
$700k $750k $800k!!”
Anxious Buyers aren’t the only ones bidding up home prices this year.
So are some Realtors, including at least a few who should (and do) know better.
Housing Market Icaruses
One of the things that can happen when prospective home Sellers interview lots of agents in an overheated housing market is that one (or more) quote an unrealistically high asking price to get the listing.
The practice — called “buying the listing” — virtually ensures that the home will debut on the market overpriced.
What happens next?
The home doesn’t get shown, or, if it does, the feedback is uniformly negative (if not harsh) because the house is underwhelming compared to its (better-priced) peers.
Eventually, a price reduction (or several) are necessary to re-attract prospective Buyers and ultimately sell the property.
Unfortunately, by then, the damage is usually done.
Homes that debut on the market overpriced and suffer serial price reductions typically take longer to sell — and fetch less — than homes that are well-priced from the get-go.
Moral for would-be home Sellers?
Pick a Realtor based on their track record, references, communication skills, etc. — not the price they promise to list your home at.
P.S.: One of the signs that a Realtor is buying the listing — besides recommending (acceding to??) a list price that has no relation to any of the Comp’s (“Comparable Sold Properties”) — is that they’ll ask for an especially long listing contract.
They’re going to need it . . .