“I’m listing with the agent who suggests the highest asking price!

By
Real Estate Agent with Howard Hanna Smythe Cramer

"I'm listing my house with the agent who comes in with the highest asking price on my property."

 

"Tis an old maxim in the schools

That flattery's the food of fools

Yet now and then your men of wit

Will condescend to take a bit."

 

The great writer Jonathan Swift understood that flattery is powerful enough to trick otherwise very bright individuals ... and that was some three hundred years ago. Yes, some agents know that a good way to get the listing is to flatter you by inflating the value of your house. Or they may sort of lie by omission and go along with "your" unrealistic price without objection. This is what's known in the trade as "buying the listing." The agent figures that you'll eventually burn-out and place a real price on your property. If you let this happen, it's really your own fault. Don't be a fool!

Listing Price

You want your agent to be straight with you from the get go. This means you should receive from every agent you interview a "supportable" opinion of value based on recently sold properties in your neighborhood; exactly what you would demand if you were a buyer. An honest agent will give you a "range" in which your house should sell.  As you know, if you price your house too aggressively high it will take longer to sell and you will likely wind-up with less. If you take too long to reduce your price, your house can get stigmatized with prospective buyers wondering what's wrong because your house has been on the market for so long. Ultimately, buyers determine value ... not sellers and not real estate agents.

Here's something else that happens all of the time. When a seller is finally ready to reduce their asking price to the amount their agent suggested, the seller then waits for the listing to expire and then lists with another agent; at the reduced price.  The house of course sells and the new agent is a hero.

BTW, we feel compelled to say something about that legendary out of town buyer with deep pockets, who's in town for an hour or so and must buy today at any price. Yeah it can happen, but this is a seller's fantasy ... an urban legend! Do you really believe that a buyer won't look at competing properties and notice that superior houses are offered for less money than yours? If you're feeling lucky go to the racetrack or buy a lottery ticket.

Finally, it's critical that you select an agent who understands and "gets" your house. We once owned a unique house in Florida which had hardwood floors, a fireplace and a basement. We mistakenly listed the property with an agent from our development. As soon as we read her comments on the M.L.S. it became apparent that she neither liked our house, nor did she get what made it special. She was enamored of our three car garage and carelessly listed that the house had two instead of three baths. Another agent subsequently got the listing and sold the house! We found-out the hard way that agents in on-going developments "sometimes" have a greater incentive to sell their new stock than to sell re-sales.

FIND A HOME: http://markostrovsky.com

Copyright 2010 Mark L. Ostrovsky All Rights Rerserved

Posted by

Mark & Elly Ostrovsky

Howard Hanna Smythe Cramer

Cellular: 216.577.1156

EMail: EllyandMark@GMail.Com

Website: http://MarkOstrovsky.Com

 

Mark is a licensed attorney in Ohio & in Massachusetts and works with his wife Elly in residential real estate representing buyers and sellers in Cleveland, Ohio's Eastern suburbs. You can search for homes on their website:

FIND A HOME: http://markostrovsky.com/

 

 

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Re-Bloggged 5 times:

Re-Blogged By Re-Blogged At
  1. Gregory Bain 02/10/2010 06:15 PM
  2. Donald Bradbury 02/10/2010 06:45 PM
  3. Kathy Schowe 02/10/2010 10:03 PM
  4. Cheryl Ritchie 02/11/2010 05:08 AM
  5. Lauren Bianco 02/11/2010 09:58 PM
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Location:
Ohio Cuyahoga County Beachwood
Tags:
im listing with the agent who suggests the highest asking price
buying the listing
beachwood oh homes for sale
mark ostrovsky

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Rainmaker
570,044
Bill Gillhespy
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos
16 Sunview Blvd

Hi Mark,  Not a new issue and certainly the above posts cover the ground pretty well.  Many agents in our area will take the high priced listing and wait for the market beat down on the sellers.

February 11, 2010 11:13 AM
Rainmaker
148,701
Linda Lohman
Former Teacher/Broker
Fonville Morisey Realty

Lenn said it best!  BTW: A smart agent KNOWS the market and KNOWS when to walk away!

February 11, 2010 08:06 PM
Rainer
109,890
Jenna Dixon
Assoc Broker, NW Metro Atlanta
DRA Homes (Atlanta, GA)

Great job.  Very logically organized. 

February 12, 2010 10:03 AM
Ambassador
1,518,686
Christine Donovan
Broker/Attorney 800-610-7253 DRE01267479 - Costa M
Donovan Blatt Realty

It doesn't make sense to me to buy the listing.  Listings aren't much good to anybody if they can't be sold.

February 14, 2010 07:34 PM
Rainer
38,017
Mark & Elly Ostrovsky
Howard Hanna Smythe Cramer

Christine, somebody once told me that listings are a liability until they sell. If a listing isn't priced right what's the point? Thanks for your comments.

February 14, 2010 09:43 PM
Anonymous
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Rainer
38,017

Mark & Elly Ostrovsky

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