If that agent has the money to buy your home at the listing appointment, then yes, absolutely! If they’re willing to put their money where their mouth is, take the money and run. But, 99.99 times out of 100, that isn’t going to be the case. If you’re pondering the question, “should I hire the agent who thinks my house is worth the most money?” here are a few things to consider about setting the right list price for your home.
Hiring an Agent Who Thinks Your House is Worth the Most Seems Like a Good Strategy
Theoretically, it makes sense. You want the most money for your house. The agent thinks you can get more than all of the other agents, so they must know something the other agents don’t. Your visions seem aligned. Sadly, usually the opposite is true. These agents are either inexperienced, don’t know the market or are trying to be deceive you to get the listing.
Naming a High Price is a Strategy to Get a Listing
Agents who don’t have another way to show their value to a seller might try to name a high price to get a listing. They don’t believe your house will really sell for the number they told you, but they play to a seller’s greed and convince them that if they list with them, their house will sell for this above market price. Once they have you under a listing agreement, they’ll wear you down for price reduction after price reduction until your home is priced for the market.
No Agent Knows for Sure What Your House Will Sell For
An experienced Realtor who knows the market can make an educated guess at what a house might sell for based on what has sold in the last 90 days and what’s currently on the market. But, that’s all it is. An educated guess. Until the home is listed on the market and exposed to buyers, no one knows exactly how much it will sell for.
Your House is Only Worth What a Buyer Will Pay for It
You can make an argument that a home is worth a certain amount when you compare it to recent comps, but unless a financially able buyer sees the value in that house, it doesn’t matter what the comps say. A financially able buyer sets the value of a home, not an agent or the seller.
Agents Don’t Set Prices, Buyers Do
Bottom line is agents don’t set prices, buyers do. Unless you find a willing buyer, you can ask for whatever you want, but you aren’t necessarily going to get it. It would sure make my job a lot easier if agents did set prices. I could come up with a price and sit back and wait to collect a check. Unfortunately, that’s not the reality of an open market and is why you need an experienced Austin Realtor to guide you through the process.
Are You Willing to Risk Losing Your Best Buyers?
Studies show a new listing will get the most buzz during the first 12 days it is listed. When you have a price reduction, the interest curve will show a small bump, but it will never be as high as the initial peak. When a home has been on the market for more than a few weeks, buyers start to ask what’s wrong with the property. When you reduce the price, buyers will try to negotiate harder than they would have if it was priced right from the beginning. Make your home appear as a value to home buyers and you might get multiple offers, which usually drives prices higher.
Do You Want Your Agent to Be Realistic with You from the Start?
You’re paying an agent to help you sell your home for the most money you can get in this market. Wouldn’t you rather they be realistic with you from the start rather than waste your time, energy and effort by overpromising and under delivering? Keeping your home show ready at a moment’s notice is not an enjoyable way to live, especially with kids. Wouldn’t you rather do that for as short a time as possible?
Insider Tip: Hire the Agent Who Knows the Market and Has a Targeted Marketing Plan to Sell Your Home
Instead of focusing on the price an agent thinks your home is worth, focus on their marketing plan to sell your home. Does it reach today’s buyers? Does it market your home, or does it market their company? How is the agent’s understanding of the market in your neighborhood? Can they speak intelligently about the market or do they speak in generalities? Here are some other questions you should ask when you interview potential listing agents.
Want to Sell Your Austin Home for Top Dollar in the Shortest Time?
Our team not only knows the real estate market, but we also have the best marketing plan in Austin. Why? Because our marketing plan markets your home, not our company. We focus on selling your home, not getting our next listing or buyer client. Check out our Austin Home Sellers Plan to learn more about our unique home selling system and how it is proven to get sellers the most money in the shortest period of time. When you’re ready to speak to a Realtor, fill out our Seller Survey, email us at info@11OaksRealty.com or call us at (512) 827-8323 to schedule a no obligation consultation.