Protect Yourself From The Agent Buying Your Listing

 

99% of the time being a Real Estate Broker specializing in an area is a huge positive. Understanding the different buyer profiles in our area, differences in the types of homes and what buyers are willing to pay for is an advantage to both myself and the clients I represent.

1% of the time it works to my disadvantage because I know something about a home that will be seen as a negative to buyers. I always want to be upfront and honest with our clients. Over the years I have found I attract savvy clients who appreciate being told the truth.

When you are interviewing Brokers to be your listing agent you will be tempted to hire the agent who recommends the highest price. It’s human nature that you will like the agent who tells you the highest price and doesn’t point out any of the aspects of your home that will turn off buyers.

Real estate agents know this and they know you will be more likely to hire them if they recommend an unrealistic price. When a real estate agent does this it is called “Buying the Listing.” The agent’s plan is to get you to sign listing paperwork with them and then constantly be telling you to reduce the price. Buying the listing is great for that agent but in the end, it will take longer for your home to sell. And what we know about the market today is the number of days on the market is a killer of your home’s value which means you will sell for a lower price. The longer your home is on the market the more buyers think something is wrong with your house and even if they are still interested, they will start making low-ball offers thinking they can negotiate a lower price.

Recently a couple talked with me about selling their home. The couple had already talked with an agent who recommended an inflated price based on another home across the street that sold. The comparable property had a beautiful pool and an oversized yard for kids and pets to play. With Covid, that type of home is the holy grail as people are wanting to stay home with their families.

That home had what we call a feature stack, several features combined together that allow for an aspirational pricing model which is a sales price above market value. The home owned by this couple did not have either of those features and it would have been dishonest for me to recommend a similar price.

I was telling them the truth but the sellers decided to hire the agent who was “Buying The Listing.” After almost 3 months the home has not sold and the agent just reduced the price down to what I recommended right from the beginning.

Whenever I run into a situation where a seller lets an agent buy their listing it stinks for me because I lose business. It also stinks for the seller because they will sell for less and the experience will be frustrating. The only person “Buying The Listing” is good for is the agent who wasn’t honest with you from the beginning because you will still pay them.

It’s tempting to hire an agent based on who tells you the highest price. When you’re in that situation be skeptical if they are being honest with you or trying to buy your listing.

Whenever you are ready to an honest price for your home contact me at 512-791-7473 .

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