When Your DFW Home Selling Price is too High
You decided to sell your DFW home and you think you have a good idea of what your home is worth. Being a diligent and intelligent home seller, you schedule interviews with three local DFW Realtors to see which one offers the best commission rate and service. Each Realtor comes prepared with a "Competitive Market Analysis" commonly referred to as a CMA, and they each recommend a sales price for your home. Interestingly, a couple of them have prices for your home that are lower than you “know” your home is worth. Although they prove their price with recent sales data of similar homes in your community, you are convinced your home is worth more. The third Realtors price is much more in line with the price you anticipated, or maybe their price is even higher. Now, you are a excited, happy home seller, already counting the money you know you get from the sale.
What is A Sales Practice Called "Buying a Listing"If you’re like many home sellers, you would choose the third Realtor. This Realtor seems to be willing to listen to and work with you. This is the Realtor that cares about putting the most money in your pocket, a Realtor that is willing to start out at your listing price and drop the price later if you need to, you can do that easily, right?After all, everyone does it!The reality of it is that you may have just hired a Realtor engaging in a unethical sales practice commonly known in the business as "buying a listing." The Realtor "bought" the listing by suggesting to you that you may be able to get a higher sales price than the other Realtors recommended. More likely than not, he or she is doubtful that your home will actually sell at that price. His or her intention from the very beginning is to eventually talk you into lowering the price. This could be to your detriment because if your home was priced properly from the beginning it would have sold for a higher price, ultimately netting you more money.Why do some Realtors buy listings this way?There are two basic reasons. A ethical, well meaning Realtor can succumb to the pressure from a home owner who has an inflated perception of their home’s value. On the darker side, there are some who engage in this sales practice routinely simply to beat out the other Realtors to get your listing. Whether you are selling you should seek to retain the Realtor with experience and a good reputation. It is also a good idea to study the comprehensive the Realtors bring to the listing appointment.
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