SELLERS BEWARE: DON’T LET AN AGENT “BUY YOUR LISTING!”

When I do listing presentations for potential Sellers, I cover many aspects of what goes into successfully selling a home. Along with explaining the myriad of things that go into marketing a home, I also discuss various aspects of both the Listing and Purchase contracts; disclosure issues and paperwork; advertising in both print and online platforms; a calendar of activities for the first two weeks the home goes on the market; showing protocols and Open Houses; a Sellers’ net sheet reflecting approximately what they can expect to net after deducting normal costs of sale; and of course, an in-depth discussion of comparable sales which is the basis for my pricing recommendation. As you might expect, the pricing/value discussion takes up the majority of the appointment. Accurate, and in some cases, strategic pricing is always the key to success in selling a home, period! With rare exceptions, no amount of fancy brochures, virtual tours, or countless open houses will sell a home if it’s overpriced, even in a low inventory/hot market like the one we’re currently experiencing.

But alas, there are a lot of “hungry Realtors” out there desperate for business and listings! Some, with no confidence in the abilities to compete and be a professional in representing realistic numbers to a Seller, have no compunction whatsoever in “buying a listing.” In fact, within the Burbank brokerage community, it is well known which unscrupulous Realtors are known for this tactic. Hint: their listings always involve longer market times due to having to reduce the price several times before it sells, often resulting in less of a “net” for the Seller, compared to if they had listed it accurately to begin with. The longer the market time, the more likely Buyers will feel emboldened to make “low ball” offer(s), thinking after so much elapsed time and price reductions, a Seller may now be desperate! DON’T FALL FOR IT! Interview at least two agents, compare their pricing recommendations carefully, and if a “weak” agent is advocating for a list price that no comparable closed sales substantiate, thank him or her for their time and show them the door – I assure you, you’ll be glad you did!

Depending on the market, the type and general price point of  a property, I usually give a Seller an approximate $20,000 high/low price range within which we both agree to price the property at. Of course, I tell them that it’s their prerogative to list it higher than my recommended range; but after about 3 weeks on the market, with no offers and activity slowing, I will remind them of the “pricing reality” we covered during my presentation.