There are 5 lies that listing agents promote in order to secure a listing. Some of these 5 lies that listing agents promote are as old as our industry. As a real estate consumer these old “tricks of the trade” are easy to fall for. This is true simply because they are often what a seller wants to hear. As an experienced nearly 15-year veteran of residential real estate, I have seen these before, and I will see them again – unfortunately.
Below I will list the five lies that listing agents promote in order to secure the listing. Then I will give you my two cents on why or how those lies came to be in existence.
“I can get you a higher price for your house than anyone else.”
This is the simple lie that every seller will fall for simply because it is what a seller wants to hear. And if you are one of those sellers who thinks your house is worth more than it really is worth, then this is music to your ears. The simple fact of the matter here is that your home will sell for what a buyer will pay for your home. After all, a home is only worth what someone is willing to pay for it. So unless your listing agent has exclusive rights to all the buyers out there in home buyer land, chances are the offer you will accept will come in regardless of who is your listing agent. The path to the best price for your home comes from knowing the local market and how to use that data to create the best bespoke strategy for marketing your home.
“I have a buyer for your home.”
Oh, this is more music to a home seller’s ears. But should it be music to your ears? As a home seller, you will confide in your listing agent a great amount. You will share the pros can cons of your home and neighborhood. You any even let your agent know what prices you will accept. So, do you really want your listing agentn to his/her buyer client? How is that in your best interest? You want your listing agent to represent you, and a buyer’s agent to represent the buyer. You really don’t want your listing agent to handle both sides since the potential for a conflict of interest is too high.
“I am the top listing agent in the area.”
Everybody is number one according to some sort of statistic. Stats are great for marketing, but what do they really have to do with your home? What you want is someone who is familiar with your home and has sold other similar homes like yours. “Top agents” can be busy people. Will your home be that top agent’s number one? If not ask yourself if you really want to play second fiddle. In a prior blog, I wrote a whole piece on what you don’t want to deal with the top agent. Click Here to see that post.
“Our referral network or other “special” pool of buyers”
Many of the large corporately owned firms will taut their referral next work or “coming soon” curated list of buyers. Here is the scoop on these buyers. If they are in the market for your home when your home hits the market, then they will see your home. And then they will come to tour your home. Once your home is entered into the MLS it automatically feeds to the Zillows of the world. And thus, this secret buyer will see your home. And then they will call some agent to see if they are interested.
Often a relocation buyer (a.k.a. A Relo) will buzz through your home. Generally, they are on a tight time schedule and are looking to see as many homes as they can in short order. They are not always the most thoughtful buyers being rushed. This can cause them to reassess an offer made and then back out. And in their hurry, they often don’t know much about the differences in various neighborhoods. As a home seller, you want someone who covets your home.
“If we cannot sell it, we will buy it”
Oh, this is as old as time. This is an age-old marketing hack. I am sure they will buy your home. But for what price? At the right price, I will buy your home. I am also pretty sure you will not sell me your home at the price I’d offer. And I have never seen a real estate firm pay top dollar for a home because it could not sell.
Now these days we so have investment firms known in the industry as an i-Buyer. Zillow tried their hand at this and lost their shirt. The math for this sort of acquisition only works with the home is purchased on the cheap. And this sort of pricing is rarely advantageous to the home seller.
So there you have it, my take on the 5 lies a listing agent will promote to secure a listing. And these are as common as time.
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