Many sellers think that the best real estate agent is the one who gives them the highest “potential” sale price to sell their home, and the lowest commission fee. But does this really represent good value?
When gaining market price appraisals from agents to sell a property, sellers should be wary of those that price their property above the others without comparable sales to substantiate that price estimate.
Unfortunately some agents will overprice properties because they are either not educated in the area, or are simply just trying to win the business. Choosing an agent on price alone can actually cost a lot of money down the track when the property is not selling. An overpriced property that is not selling can put the seller into the unfortunate position of having to sell below market price to gain a quick sale (due to commitments elsewhere).
Incorrectly pricing property targets the wrong buyers.
Additionally, most buyers watch and know when a property has been on the market for a long time. Even if the price is later adjusted to the correct market price, the previous activity tarnishes the property and buyers often think there is something wrong with it! All of this wastes a lot of time and causes the seller a lot of stress. This inactivity also attracts “bargain hunters” trying to secure a property at a rock-bottom price.
It is critical to correctly price a property.
When it comes to real estate agents and their commissions, the ones who are cheap, or cut their fee easily when asked, are not going to be tough, savvy and smart enough to negotiate with buyers. It’s these strong negotiation skills that sellers need from their agents to gain the best possible price for their home.
When it comes time to sell, it’s important that sellers choose their real estate agent focusing on their reputation, current sales track record, but more importantly their sales skills. This is what will get the best final price!