Please Beware of the Inflatable Real Estate Agent
A real estate agent that inflates a list price beyond reality just to get the listing is deceptive and may be harmful to the sale of your house. This deceptive practice of inflating the price can actually be an effective tool for a real estate agent to get the listing. The practice is often called “buying the listing” as they are effectively pricing it at whatever it takes to get your business..
It’s quite natural for a sellers to believe their property is worth more than a buyer and the market is prepared to pay for it. So when an inflated agent comes along with an inflated price a hopeful seller is often fooled into believing that they are the only ones who have it right and everybody else has it completely wrong. Bad real estate agents are more than eager to feed into this delusion.
Just like everyone else you want to acheive the highest possible price for your property and if there was a way to guarantee you would receive exactly what an agent indicates to you the inflatable agent would naturally be the perfect choice. But they wont give you a guarantee to achieve their inflated price. In fact it normally only takes a week or two before they are suggesting massive cuts to your listing price to bring it closer to reality.
Great real agents offer realistic price suggestions based on factual information in the marketplace. It comes as no suprise to anyone that the agents that often inflate their price recommendations to owners are often some of the worst performers in their area. They may have quite a few listings because far too many fall into their traps but one thing will be missing and thats the sold signs. It just doesn’t take any real talent to be an Inflatable Real Estate Agent
Property sellers should never use price as a factor for choosing an agent. Here’s why it will work against you.
A real estate agent that has to inflate their suggested list price to you solely to win your listing is essentially lying to you. Real estate agents that have to lie to win favor, usually lie far more than once. So you have to ask yourself what else have they lied to you about during their presentation? Has anything they told you been the truth?
Great real estate agents provide truthful facts, even when the facts may not be attractive. Their advice is professional so you can make an educated decision when selling your home.
Chasing the Market
The first month of any listing is usually when the house receives the majority of it’s attention. It is vital that during this period that your price is as correct as possible because if your house is priced too high initially then it will not receive the attention required to get it sold. Correcting the price back to reality later is often too late and the opportunity has been lost.
It’s too late because your listing is getting stale. Even worse, in a competitive market prices may be dropping so your reduced price may still be overpriced for the current market. The process repeats and the price drops further keeping the house on the market longer.
In most cases, if it’s priced right, it will still sell for more than if it’s priced wrong, even if that wrong price is much higher. If a purchaser knows the asking price is way over the real value of a property they will often compensate by making a much lower offer.
Increased Days on Market
Your home becomes far less attractive to prospective buyers every day it stays on the market. That’s why it’s very important to be price competitive from day one of the listing. Past a certain amount of time your house becomes stale and it will remain stale until the next price drop.
How to Spot an Inflatable Agent
Agents that inflate listing prices to attract property sellers must eventually lower them to be able to sell the property. This trend can easily be spotted in a market comparative market analysis (CMA) data.
Inflatable agents have a greater difference between original list price and current list price and their eventual sales price. You also need to check their days on market (DOM) because this practice usually results in a longer time on market.
To compare all of the agents’ data to the market you’ll need a CMA that shows comparative properties to yours, how many days they have been on the market along with their original list price compared to the current list price or sales price. If the agent has not provided you with this information ask for it.
You should avoid any agent who on average has high days on market and massive differences between the original list price and the current list price or sold price.
Originally posted at the : Nerang First National Blog