Don’t Let Yourself be Bought by a Listing Agent

"I've decided to sell my house and am interviewing several real estate agents in my area to see which one can sell my home for the most amount possible."

Everything in that statement sounds ok, right?

The beginning and middle parts of that statement are totally fine. In fact, the middle – "interviewing several real estate agents" – is excellent because you should always interview 2 or 3 agents before you make a decision on which agent to hire.

But the last part of that statement – "sell my home for the most amount possible" – is a bit troubling because it screams of the seller setting themselves up to be "bought".

Here's what I mean and how it works…

Let's say that two of the agents say your home is worth right around $350,000 and the comps (recent similar sales) support that number. But one of the agents says it's worth $375,000. The agent claims that they can sell your house "for more" because they or their marketing plan "are better". You believe and hire them because you want the most amount of money possible for your house.

That, folks, is what we in the industry call "buying a listing" – an agent claiming they can sell a home for more than what it's really worth in order to get the listing. If you used the highest promised sales price as a deciding factor on choosing an agent, then you may have just been bought.

Let's dig deeper…

If your property is worth right around $350,000 and the agent says it's worth $375,000, there are only two reasons why the agent would say that:

1. They have no clue about market values, market conditions or how to do their job
2. They really know what your home is worth, but lied to you in order to get your listing

Regardless of which one it is, do you want an agent that exhibits either of those qualities representing your best interests and your $350,000 asset?!

Even deeper…

Guess what happens when your property is overpriced? It just sits on the market while your neighbor's/competitor's homes sell. The longer your home sits on the market, the more of a bad stigma it gets and the less you get for it. (Goes back to the age-old buyer question, "It's been on the market for a long time – what's wrong with it?")

The market value of your property is what it is – we as agents/brokers can not control that. Some of the things agent and brokers can control and part of the value we bring to the transaction is,

• quality and depth of marketing in order to get the most number of ready, willing and able buyers noticing your property
• quality and experience in negotiating with buyers and buyer's agents
• quality and honest guidance - part of which includes pricing your property correctly

Focus on the value that an agent/broker can bring to the transaction, their level of skill and knowledge and whether you feel comfortable working with them. Don't let your pocket book, financial situation or greed cloud your judgement. If you follow this formula, you'll avoid a lot of stress, frustration, wasted time and lost money.