subject: Real Estate Selling-why Agents Accept Listings That Are Overpriced [print this page] The reasons that some real estate agents will accept a listing that is priced to high are varied and mostly very devious. If the home you are selling with a real estate agent is going to be listed at a price higher than what it should be, be wary of this. Although the reputation is one of the most important things to a real estate agents, there are a few who will risk their reputation to get a few added benefits.
What are the pros to a real estate agent selling a home so high that it most likely will not sell?
Some agents are only interested in getting listings. It is possible that the real estate agent even tells lies to the owner regarding the fair market value just to get the listing. They will do anything to get you to sign with them, even quoting higher than other agents that may have already provided high quotes. The price may continue to go up if another agent tries to do the same thing. This may not be the best idea to sign with an agent who gives you the highest sale price if you plan on selling your home in the near future. One of the considerations is the value that is placed on your home by the agent, which is something you need to have for any potential agents who want to represent your own personal interests. There are more important things to consider, like their plans to market your house and their ability to negotiate pricing and such. Actually, the pricing should be based on the comparison report for your area.
Be aware that if you are the seller of the property and you want more than the properties are going for in your area that are comparable, there are agents who will take your listing just to have a listing and really won't care if your property sells or not. Why is it that a real estate agent would want to list a home at a much higher price than what it can possibly ever sell the home for?
The main reason the agent will take an overpriced listing is for the exposure it gives them. Essentially, this is free advertising for the real estate agent when they put their sign in your yard, thus advertising their own name and telephone number. Most of the signs that are used today are a little more technologically advanced than before, including the agent's website and photo. Whether it is in front of your home that is right next to a busy street, it is someplace else for the real estate agent to list their name and information, which is exactly what they want. The thing is that when people call on this listing, the agent can then use this opportunity to show other listings to this potential buyer that are priced at a much more reasonable cost.
Even though there are other obvious reasons, the agent can use this to their advantage by telling the buyer that there are other homes they are listing that are at lower in price. When the potential buyers come to the overpriced open house that is being held by the agent, the agent can use this to their advantage to draw these people into looking at other homes that are more reasonably priced. Another sneaky tactic is to place advertising for the overpriced home without the address but with the price. By doing this, the person who calls to inquire about this home is already prepared to pay a higher price. For this, then the agent can show them a home that will actually meet the value with the price. There are other agents who will take the listing that is well overpriced, simply assuming that the buyer will probably grow discouraged and drop the price to give more value to the home. This really comes down to the fact that the seller needs to be careful about the asking price when it comes to signing your listing agreement. Just because the price is high does not mean it is meets the value of the home.
