Arrrghh!!!! Well I find myself inspired today to rant and rave, and maybe give away some of the super secret RE agent tricks of the trade. Today we will cover the lazy agents way to get a listing. It is what is called “Buying a listing.”
So first let me preface this little lesson with a true story out of my daily life. So a landlord I’ve worked with for a while decides it’s time to sell her condo. We have a great working relationship, and she is kind enough to give me a head start, and tell me that she’s going to want to sell her condo, and that she’s going to be talking to other agents as well (which every seller should do, always interview other agents, 3 minimum).
So I get started right away on a CMA (Comparative Market Analysis - looks at recently SOLD similar properties and makes adjustments to derive a current market value). Long story short, I tell her I don’t think it’s going to sell for more than $360,000 if she wants it to sell quick in this market, she should probably price it around $369,900 unless she is planning on doing some substantial upgrades to it. I am extreemly confident about this price.
So one of the other agents she’s interviewing, (I don’t want to name names of the brokerage or anything, but lets just say it rhymes with Boldwell Canker) talks to her with about similar properties ASKING PRICES …..
(I asked her if she wanted to ASK her property or SELL her property, don’t ever look at asking prices…. I can put a flaming bag of poop on the market and ASK $2 million for it, that doesn’t mean it’s worth it!!!)
Anyway so this Coldwell….. I mean Boldwell Canker agent, sees that other properties are asking for some good money, and tells the seller to list the property at $430,000.
So if you’re a seller, and you have one guy telling you a lower price, and another guy telling you a higher price, who are you going to list with?? Seems like a no brainer to me too.
And that is a perfect example of Buying the Listing. The unfortunate fact of the matter is that, this guy is going to get the listing, and let it sit there for a while, and after a while, tell this seller that she needs to drop the price. All the while the seller is stuck with the carrying costs associated with this unit. And I thought listing agents were supposed to be working in the sellers best interests.
My prediction is that this property will probably sit for 2-3 months before the price gets lowered to a more realistic price. By then, the summer buyers will have already bought, it will be too late for her to rent the unit for the winter, and this property is going to sit all winter. The seller will then get desperate, and will probably end up getting less money for the place than she would have if she listed it at $369,000. Not to mention probably another $10,000 (minimum) out of her pocket for carrying costs.
I will follow this and be updating it in the blog as changes occur. Unless of course I’m wrong, in which case I will have to destroy all evidence of this entry and silence all who are reading this right now.
So sellers, when you interview 3 agents, and one of the quotes is much higher than the other two, chances are that the agent is trying to buy your listing, and is not doing you any favors. Remember, it it seems too good to be true, it usually is.
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