Q. My home has been on the market for 5 months. No offers, few showings, yet my agent promised me he could get more money for my home than anyone else. Any suggestions?
A. When you sit down with an agent, you are most likely going to get a pretty folder with a list of their awards, pictures of really happy people and a price of what your home should sell for. And that price is most likely inflated for at least one out of the three agents.
You start thinking, I wouldn’t want to give up $20,000 just because those other two agents don’t understand how special my house is.
Without offending you, I am here to tell you this doesn’t translate. Offering an unrealistically higher value is a crude tool used to excite a seller into thinking “hey, this person is going to know how to squeeze out some extra cash”. However, your agent doesn’t set the selling price, they only help determine an asking price. A ready, willing, and able buyer has the most control over the maximum value; and these buyers aren’t going to be throwing in an extra $20k because your agent promised you a higher value, in an attempt to gain more listings.
Because I am a whole financial picture sort of guy, let’s look at the costs to a seller who allows the price to be set too high:
Your house stays on the market without much activity.
Your expenses continue to add up: Taxes, utilities, insurance, mortgage, etc.
You are maintaining a structure that nature is relentlessly attempting to tear down.
And finally, new buyers start to think that there may be something wrong with the house as it’s been on the market for months.
Be as wise as your age. Pick a realtor who lives or works locally. Be sure the realtor you pick is experienced with a proven track record. In real estate, experience is everything.
