Price it too high and astute, well-informed buyers will know leaving your property languishing on the market. It may ultimately even sell for less than market value because buyers have more leverage given the reduced competition for an overpriced property.
As a vendor it’s important that you don’t fall into the trap of selecting an agent based simply on the highest valuation for your property. According to an article on news.com.au, international real estate trainer David Knox says that, “The number one mistake that vendors make in every country on the planet is that they select an agent based upon what asking price the agent offers. And the problem is, agents who need listings can very often be induced to say that high price just to get the listing. The vendor wants to believe it because they think their home is worth more anyway.” Mr Knox said that if a property was listed with too high an asking price, it would later require successive price reductions to secure a sale.
“The greatest challenge for a real estate agent is to tell you the truth, but still get your business. My advice to a vendor would be if you are going to interview more than one agent, ask them to come out and describe their marketing plan and their process and see if they listen and see how they interact with you. Look for market knowledge. Do they really know the market and do they know the process of selling real estate? The agent better be able to describe their entire process, from the management of the marketing all the way through to the final payment.”
While he said liking the real estate agent you choose is important, Mr Knox also rated competency and trust as key attributes. “There are a lot of people who are likable but are not competent,” he said. “It’s nice to get somebody who’s competent and who you have a rapport with, but don’t be fooled by just likability. I think the one characteristic they should have is trust.”
This blog post was taken from One Agency online e-magazine, to view the magazine click here.