Two of the biggest mistakes home sellers make when choosing a listing agent are selecting an agent solely based on:
1. Highest List Price For Your Home
2. Lowest Commission
The Highest Suggested List Price For Your Home:
Agents can’t tell you how much your home will sell for. That’s a fallacy! A typical listing agent can show you comparable sales, pending sales, and active sales. An excellent listing agent can predict where the market is going in the short-term. It’s like buying a stock … you study trends (which are in the past) but the best brokers choose their buy/sell price today… based on where they think the price will be tomorrow!
However, once you choose the price a BUYER will tell you if the price is right.
To get the listing, some agents unfortunately distort the truth (tell you what you want to hear);
Since agents can’t guarantee your sales price, the listing agent who suggests the highest price is probably being untruthful. Ask the agent to show you numbers supporting that suggested list price. They probably won’t have them or the home sales will be located in a different neighborhood.
Look for a listing agent who gives you a range;
There is always a price range. It might be apart $10,000 on the low-end versus the high, or the spread might be greater. Many factors determine the range, among which are location, pace of the current market, and home improvements.
Again, if you consider stocks … when you ask what a stock is worth, an amateur will tell you XYZ stock is worth $20.00. A professional stock trader will tell you a XYZ stock is trading between $18.00-$22.00 at the moment!
Pricing is an art;
The best time for an offer is within the first 30 days on market.
* If the home is priced right, you’ll get an offer.
* If it’s priced too high, you might not get any showings at all; buyers will shun your home and you’ll eventually end up reducing the price, leaving buyers wondering what’s wrong with your house.
Remember, even in a declining market, pricing strategy is very important. If you price the home unrealistically and it sits on the market while the market declines, it will sell for a lot less in 3 months than it will in 30 days. So knowing where the market is going in 1, 2, and 3 months can make the difference of tens of thousands of dollars in your pocket!