What Is It Really Worth?
So what is it really worth... are you getting varied opinions from real estate agents as to what the likely sale price will be. Who do you believe? If you make a choice of agent based purely on price alone, you could be making a massive mistake, which in the long term, could cost you dearly.
Let's look at it from the agent's point of view for a second to get a perspective of what goes on. The agents know from history that January and February are typically big listing months for real estate, the holidays are over and everyone who is serious about selling real estate starts to make a move, and a lot of properties hit the market. Now obviously all agents want to sign up as much business as they can in this ripe period and each will employ different measures to achieve their targets.
Some agents work on the principal that if your motivation for selling is high, then they will inflate the price enough to impress you, and effectively out bid the other agents, to secure your listing. They then work on you for the next few months hoping they can get it back to a realistic price and then get it sold before their agency agreement expires. This usually results in a low sale price as the property remains on the market for an unusually, and unnecessary, long period of time. Prospective buyers then use this fact against vendors to negotiate a lower price.
Just put yourself in the buyer's position...they have the mindset that if it's been for sale for six months, you will sell cheap, and they consequently offer you a low price. Some agents will even use this against you to encourage you to accept that low price! This is the most typical scenario of "too high a price resulting in too low a price".
Some agents quote lower prices in an attempt to sell the property as quickly as possible, with the least cost to their business. Or they are simply incompetent or in-experienced and do not know the fundamental steps to follow in performing a correct appraisal. Needless to say, quoting a low price is obviously not healthy for your final sale price either.
The better agents will present you with recent comparable sales in your area. This information will typically consist of;
1. Details of the comparable property with photos if available.
2. Date of sale.
3. Final selling price.
The real estate agent should openly inform you "based on the recent comparable sales" where they estimate your eventual sale price to be. It will usually be a range, for example 'in the vicinity of $380,000 -400,000', and they may also recommend you try for a slightly higher asking price initially, to gauge buyer reaction, but this needs to be monitored closely and is totally dependent on the market conditions in your area at the time.
The long and short of it is simple; you need someone on your side who is prepared to be straight with you, discuss your options and then plan a pricing structure which accommodates your individual needs and desires as well.
By proper prior preparation and research, you will quickly and easily identify the agent you want to look after your money.
What we do… Think of us as you would of anti-virus software you install on your computer to detect and eliminate a virus before it causes damage. We help home sellers to detect and eliminate issues which are typically caused when agents (who have their own agenda) give poor or misleading advice.
Unfortunately, there is a growing number of people who contact us when a problem has already occurred… remember you install anti-virus software on your computer to avoid getting a virus, so please contact us first so you can avoid problems with your sale.
We will always tell you in plain English what effect any advice from an agent will have on your sale and whether its good advice (in your best interest) or it’s going to cause you a problem in which case we will make alternative suggestions for you to consider.
PLEASE NOTE: We DO NOT pass your details onto anyone else, we do not on sell your email address or phone number to marketing companies or any such like or real estate agents. Your personal details go no further.More Selling Tips...
What Is It Really Worth?
A New Way Of Selling
Buy First Or Sell First
Getting The Buyer To Pay Their Best Price
Using 2 Or More Agents
Beware The Phantom Buyer
Selling-Buying In A Slow Market
Lots Of Lookers