Beware of the agent quoting a high price

Posted on 29 October, 2013 in Tips, Selling Property

When the time comes you are considering putting the most important asset of your life on the line, your property, you will want to ensure you pick the best person for the job. So what are some of the things you should consider?

Feeling good about the agent is a good place to start. Surveys show that reputation and professionalism are two of the most important criteria that home sellers consider when making their decision. Local knowledge is also invaluable and it's a good idea to choose an agent that knows the local market and has a track record of selling homes in your area. Other things that need to be considered are associated costs such as marketing and advertising. Beware of large and costly advertising campaigns that will require you to commit to a lengthy period, as this will see you committed to payment of this campaign even if the property is sold in the first week. Look for an agent who's Company tailors any marketing and advertising to suit the client and only charges the owner for what is used to get the property sold. Other marketing such as internet, brochures and sign's are often charged but you can also get these at no cost if you shop around.

One of the main things to be aware of when interviewing agents for the job of selling your property is overvaluing. Often when agents know they are competing with other agents to get your business, they want to stand out and the easiest way to get your attention is to quote a high price. It may sound good when they tell you they will get you a lot more than the other agents are quoting, but all the agents are dealing with the same buyers in the same market. Market values are set by demand and the price's recently achieved in that market. To obtain a price that is a lot higher than that is highly unlikely, and to make the agent accountable for their stated value you should ask to see the data they have used to ascertain their price. By believing an agent and setting the price to high you are likely to spend a lot of money on advertising for no result, after which time the agent will be asking you to reduce your price. Once the price is reduced to the point it meets the current market a sale will be achieved. In order to achieve this sale the owner has had to spend money on advertising and wait for a lengthy timeframe to get the property down to a price the market was prepared to pay. The price finally achieved was what the data showed and the other agents were quoting in the beginning. It is also common for properties to achieve lower prices when they have started to high and undergone multiple decreases in price over a long time, usually because the market thinks there is something wrong with the property. Highest prices are normally achieved early when the property is new to the market.