All Listing Agents are Not Alike
Common mistakes are when you choose a listing agent is picking an agent that tells you they will sell your home at the highest list price or they give you the lowest commission rate. I know you are saying that I am crazy, because that is what you want. You want the highest price and lowest fees.
Let me show you why these are not the best way to hire a listing agent.
Agent Suggested the Highest Listing Price
So you interviewed several agents and one of the said he would list your home for thousands more than the other agents. In another words he is promising you the moon. Some agents do this just to get the listing, and then they will slowly get you to lower your price in a few months to bring it in line with the market. The problem is that you have wasted months trying to sell your home at an unrealistic price.
There is no agent that can tell you exactly what your home will sell for. A listing agent can show you data on what other homes have sold for, pending current sales or currently listed that are similar to yours. This is known as a comparable market analysis (CMA). By using this data you should be the one that sets the price for your home. If you over price your home it will not sell. If you under price, you will sell it quickly, but lose profit.
Always ask the perspective listing agent to show you data to back up the listing price he is proposing. The best agents can give you a price range in which you should market your home.
Days on Market
The number of days a home is on the market is a gauge that many buyers use to determine offers they make. If your home is on the market less than 30 days a buyer will fill an urgency to make an offer and get the good deal before someone else gets the bargain. You want offers in the first 30 days.
If your house is on the market for 30 to 90 days, the urgency has gone. Buyers will make lower offers and tend to move a little slower.
If your house has been on the market for over 90 days, the buyers will wonder what is wrong with your home. They will give you low ball offers, if any. Some Realtors suggest taking your home off the market for several months so that you can relist it and have it show in the multiple listing service (MLS) as a new listing. Of course you would want to really evaluate the new listing price to make sure that it does not go past 90 days again.
Now we come to the best part of our discussion. You know in your job (in any job) that some people work harder than others, some people have more talent than others and some people just plain outperform others. This is especially true in real estate world.
Do you know that about 10% of the Realtors sell 90% of the homes? That is true. Every Realtor has their marketing style. Some agents have a large advertising budget. Some agents work harder.
So you need to ask yourself one thing, “Why is this agent asking a lower commission than other agents?” Remember the old adage, “You get what you pay for.”
If you are choosing a Realtor® because his commission is lowest, then you need to know is why.
Here are common reasons agents have lower commissions.
- They are desperate; they are not making enough sales, so they lower commissions to get clients. Do you want to work with a desperate agent?
- They don’t give you full service. Sometimes they will put you in the MLS, put a sign in your yard and off they go. You don’t have any open houses, they don’t call, and the sign sits in your yard and rust away.
- They think they can get the most listings and put other agents out of business. Of course this could backfire and other agents may not be as likely to show their listings to perspective buyers.
Bottom line is that if you are interested in selling your home; interview the agents for the job. An agent that charges 1% more commission but gets you 10% more for your home is definitely a good deal.
Give me a call (208)830-7991, or send me an email for information Texas Hill Country Real Estate.