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I would like to just post a comment addressed to anyone wanting to sell their house in this market. This may be an obvious observation to some just in general, but I think it is more acutely true today than ever before. It is simply this:
If you are interviewing real estate agents to represent your house, do your own homework first and know what comps in your area are selling for. DO NOT rely on comps they bring you on the first meeting, because they can reflect ANYTHING they want them to reflect that will help them get your listing. Agents will flatter you by saying your house is worth a great deal more than they KNOW it would sell for right now just go get it listed with their office. After you are safely signed with them, they will wait a respectable period of time (or not - sometimes no time at all) and then recommend reducing the price thousands of dollars less -- what they should have listed it for in the first place. They do not care that you've wasted weeks of your time. They do not care if you cannot afford to sell it at that price - even if it's less than YOU paid for it yourself. They only care that when it DOES sell, they will get the commission and not some other office.
We none of us like to think we are vulnerable to this type of tactic, but truly we all have a certain amount of pride in our homes, and realtors know how to flatter us financially in order to get our business. Times are hard for them too. They are not above it.
So please, do your own research before taking what realtors tell you about what houses are selling for granted. Not that they are lying. But they will not share anything that would discourage you from listing, listing NOW, and listing with THEM. They will come to your interview armed -- you need to do the same.
I'm just offering this in love as a person who's been through it, hoping my experience will help someone else.
Good sound advice. May I add,.. if you're trying to sell your house in the current market, be realistic on the price. This isn't a good time to think you're going to "get rich" selling your home. If you're not able to set a price that is comparable, it may be a good time to take the house off the market and wait a while for the industry to swing back. I realize it's hard to live in your home comfortably when you're always on "showing alert", I'm not criticizing. Just MHO.
You should really put a disclaimer in there that you've been burned before.
BAD agents will tell you the price you want to hear to get a listing. GOOD agents will tell you like it is. We don't want overpriced listings. What good is it having our name on something that doesn't sell?
I interviewed against two other agents the other day. Both said he house would sell for somewhere in the $240's. I said that she needs to list it at $225 because reality is that it won't sell for more than that.
lillie....yes there are agents who 'buy' listings. Get the potential seller all hyped up with a high, often unrealistic price, just to get the listing. That is why one house in my neighborhood hasn't sold after 10 mths. And the neighbors all know why...and the seller refuses to listen to reason. The seller did not talk to any other agent, she saw the $$$$ - suggested and latched on to it like a tick on a hound dog.
LillieB - you hired a weak agent and you shouldn't assume all agents are like that. Most of the marketing expense is front loaded when the listing is fresh on the market and is the most effective. A good agent will not waste their money telling the world that they have a new, overpriced home. Did you interview 2 or 3 agents? Did you choose the agent based on the highest price and lowest commission offered?
Pricing is an art and not a science and many homes are on the market today where the REALTOR and seller thought they would sell quickly for but haven't. The market is speaking loud and clear and if you're not getting multiple showings in the first two to three weeks, there is a problem. Sit down with your agent and formulate a strategy to get showings and offers right away.
Many homeowners have a number that they need or want, because afterall, they are "not going to give it away". Many homeowners want to cut to the chase and get to the price. They do not focus well on marketing. Their behaviors make it clear, they will choose the agent who gives them the best number.
The agent who comes closest to that fantasy number is often the agent who gets the listing. Agents know this and some of them will tell the owner what they want to hear. They know that if they don't sustain the owner's fantasy, someone else will. Using active ( unsold) comps ( fantasies) instead of factual closed comps, is the easiest way to achieve this.
There are homes in my area selling for 20-30% off the original list price. This is far more a reflection of the owner's original fantasy and use of an agent willing to sustain the fantasy to gain the listing, than it is on the actual market. These homes usually sell for less than they could have, had they not chased a down market.
Every homeowner decides their own objective, getting their price or getting sold. Those who fixate on getting their price, tend not to pay attention to marketing. And many of them get the agents they deserve.
Just like any service industry, its caveat emptor or buyer beware.
The OP's point was mainly to educate yourself because unfortunately the industry is not clean. I've dealt w/the same problems before I got smart and educated myself.
The 3rd realtor I interviewed was great. She lived in my area for 40 years, knew the market like the back of her hand. She also didn't pull any punches w/the list price either....couldn't have asked for a better realtor. Ultimately, we sold the house quickly because we priced it aggressively ahead of the curve.
The OP's point was mainly to educate yourself because unfortunately the industry is not clean. I've dealt w/the same problems before I got smart and educated myself.
Getting sellers educated is a problem. Buying a listing does occur regularly here in my market. I see it all of the time and have had sellers tell me that they chose another agent because they could sell the house for more. Let's see...expired listing, expired listing, and oh yeah...expired listing...
Sellers have to be willing to accept the information that agents give out to them and I am floored when I see some of the comps used by other agents. I feel bad for consumers sometimes.
Getting sellers educated is a problem. Buying a listing does occur regularly here in my market. I see it all of the time and have had sellers tell me that they chose another agent because they could sell the house for more. Let's see...expired listing, expired listing, and oh yeah...expired listing...
Sellers have to be willing to accept the information that agents give out to them and I am floored when I see some of the comps used by other agents. I feel bad for consumers sometimes.
It goes both ways. I've told agents their out of their mind for what they wanted to list my house. I said there's tons of inventory, the market is getting worse and your still pricing it above what homes sold for in the last 3 months.....why????
Also, too many sellers think their POS taj majal is worth more than what a buyer is willing to pay.....you have to take the emotion out of this if you really want to sell
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Many homeowners want to cut to the chase and get to the price. They do not focus well on marketing. Their behaviors make it clear, they will choose the agent who gives them the best number.
