What does it mean to “buy a listing”?
So you are seriously thinking of selling your home and you do the right thing by calling an agent you know, encountered, worked with before, or one who has stayed in touch with you over the years, to give you an opinion on the value of your home. They do their homework, research the solds and the active competition, and report to you a value that you, obviously, do not like – it’s understandable who would not want more for their home – but the honest and professional opinion is wasted. You call a second agent and whether you share the fact that you are getting opinions from different brokers or not, who knows how the conversation goes – the second agent wanting to secure getting the listing, inflates the price.
There is a phrase in real estate agent parlance that is used within the industry – “to buy a listing.” It is usually a derogatory remark made about how an agent acquired a listing for a property. When an agent goes on a listing presentation, you would hope that facts regarding recent comparable sales would be used so that everyone’s expectations are realistic.
However, it is music to the seller’s ears to hear an inflated number as the list price for their home. Naturally, most sellers believe that their home is special and should sell for more than any of their neighbors, regardless of actual market conditions. It is human nature to latch onto an unrealistic list price once that number is spoken out loud by the agent. This situation is a common pitfall that leads to an unhappy seller and a home that sits on the market with very few showings until there is a succession of price reductions to finally reach market value or below.
Here is some good advice to our sellers out there:
- Talk to a reputable professional who will give an honest opinion.
- Ask about the most recent comparable sales in your neighborhood. Ask to see the facts.
- Don’t miss the honeymoon period when your listing is new to the market by exaggerating the list price. Nowadays, every buyer is very well informed through the internet and they are being advised by their own agents as to the true market value of a property.
- Ask the prospective listing agents if they would be willing to reduce their commission if they come asking for a price reduction later on if that is the price they are recommending.
- Be accurate with the initial list price of your home from Day One. This will encourage showings and garner top dollar on the sale of your home.
- Today 93 sellers reduced their price trying to catch up with the market after losing on the great sales activities we’ve been enjoying in the last 5 months. Don’t let it be you.
After over 25 years in the business as full-time REALTORS®, our clients count on our professional opinion and our ability to deliver what we promise. The sale of your home is our priority.
Send an email to Ellie@StepsToTheBeach.com or call directly at (239) 776-5077 with questions or to schedule an appointment if you are considering the sale of your home. We love sharing our marketing plan.