Today marks the beginning of a video series in which I will address some of the complaints I hear from clients about their agents. In this first part, I’ll talk about agents who buy listings.
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An agent buys listings when they knowingly overprice a house in order to win that listing. Of course, the sellers think to themselves, “Why in the world would I list with anybody else when my agent is so confident they can get me a phenomenal price?” Unfortunately, there are consequences that the seller doesn’t even see coming.
Overpriced houses don’t often get shown. They sit on the market for too long, and of course, the agent who overpriced it can’t very well call and ask for reductions. They rack up too many days on the market, and by the time a buyer comes along, that buyer will see how long the home has been available and think of it as a steal—it’s commonly thought that homes that have been on the market for too long will have sellers desperate to see it sold, meaning that buyers think they can get a discount.
In a rising market, a house that’s overpriced can actually be devalued as the market progresses by racking up days on the market.
Here’s the weird thing about that: In a rising market, a house that’s overpriced can actually be devalued as the market progresses by racking up those days on market, which affects a buyer’s perception of your home’s value.
Another odd thing is that sometimes, a buyer with a double-dipping agent can sometimes pay far too much for a house, since their agent isn’t going to be frank about the pricing on the home. I’ll discuss this point in more detail in the next installment of this series.
Good agents do the right thing. They look for fairness in all their dealings with their clients and with other agents. They do their homework and are frank about the pros and cons of pricing a home. If adjustments are necessary, good agents have a process and a procedure in place to make sure that those price adjustments are made quickly and that the home doesn’t wind up stagnating on the market.
If you have any questions about this topic or others, please feel free to reach out to us at the Busse Group. We’d love to hear from you.