When the amount of property for sale on the market starts to get tight the danger is that less scrupulous Agents bend the truth on likely sale prices in order to secure new signboards. In the industry we call this “buying a listing”.
Why does it happen?
It happens because some agents panic as properties become scarcer and start putting their interests ahead of a sellers. It becomes about their need for pay cheque ahead of a sellers need for the best possible advice and result.
But agents aren’t the only ones to blame – the promise of a high price is a fantasy sweet that some sellers can be all too eager to consume. Indeed, sometimes the high price honey trap is often of the sellers own making with the agent becoming an all too willing participant – my house is DIFFERENT, it OWES me this amount, I HAVE TO sell for this price price to buy the other house I want, I’m not in a hurry, I’ve got TIME.
All of those statements tell an agent that you’re heavily emotionally or financially invested in your property and that you’re hoping we’ll tell you want you want to hear, not what you might need to hear.
There are lot of ways to achieve the maximum potential price in the current market – overpricing just isn’t one of them. Over priced homes take too long to sell, go stale, and end up being more heavily discounted than if you’d listed utilising the right market strategy in the first place.
Don’t fall for the promise of a price or choose an agent that simply affirms your own.
When you’re selling, look for an agent that knows the market, supports their estimate with real sales evidence, has a great appraisal to sale price ratio (mine for example is currently 99.6%), has a strong sales process in place and gives you great advice about getting your home ready for sale. Find someone that seems to genuinely have your best interests at heart who’s not afraid to tell you what you need to hear, even if they know you’re not going to like it.
An estimated selling range is always a best guess. It’s not the price we promise you that matters, it’s the process we’re recommending to get you the best one that does.
Natalie Hoye is the Founder and Licensee of Red Fox Property Group – a boutique agency doing things differently in the suburbs surrounding Beaufort Street. We call it ‘real estate alchemy’: a genuine blend of science and intuition, marketing and magic, head and heart. The Red Fox Way. And we’d love to chat with you about your local real estate needs. Call us now on 0405 812 273.