We have a lot of choices today, don’t we? We see advertisements for services all over the TV, internet, social media, bill boards – you name it! When we need to sell a house fast we can become impulsive and be susceptible to false promises when we’re in a bind. So when we hear: “I can get you more money for that house if you sign this listing agreement” we have to stop and think. If you need to sell a home run if your agent tells you this!
What Is Buying The Listing?
This is a trick in the real estate brokerage industry that refers to an agent promising a seller more money for the house in an effort to win the listing from competitors.
The listing then sits on the market for a couple of months and then the agent suggests major price drops just to get it sold. For example: “The other agents told you the home is worth $250,000? If I told you I could sell it for $275,000 would you be ready to enter into a listing agreement today?” In these situations, sellers wind up getting less money than they originally would have if they had priced it correctly from the beginning.
Why Is This Important?
More homeowners are facing stiff competition from home builders who can offer huge incentives such as free upgrades, stainless steel appliances, granite countertops, modern cabinetry and so forth.
Over pricing existing homes in any market is a sure way to keep it from being sold. Buyers can always drive up the road and find something similar. Some agents are unethical and others do this out of ignorance; either way, it is inexcusable.
Agents are held to a certain bench mark of competency and ethical standards, which is why this behavior is frowned upon by the regulatory boards.
How Do We Avoid This Trick?
You always want to have comparable sales data to be able to back up an asking price. Any agent who is serious about listing your home for sale should have already done research on your home. Ask for the comparable sales data and make them show you how they arrived at the suggested listing price.
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