A Realtor has just talked to you and said, "I have a buyer for your property and I can sell it now; perhaps for more money than the price your current real estate agent has it listed for." Have you heard this or a version of this? Or, "I have a buyer for your property and I can sell it now; for Big Bucks (with an incredibly high figure named) perhaps for more money than that."
In the fiercely competitive real estate business, it is a too common practice for one real estate agent to entice a seller to re-list their property with the new Realtor. It is also against the Realtors regulatory requirements in several ways.
If the Realtor will break the rules in his own professional organization where he has been and will be for years perhaps... how honest and ethical will he be with YOU a one time relationship? Frequently, the wording used to entice is vague and the idea insinuated rather than spoken plainly ? but the intent is clear. Realtor B suggests or insinuates to the seller "Get rid of Realtor A and list your property with ME as I have several buyers who will buy your property right away." As a seller you want to sell your property and for more money, right? BUT, Do you want a liar to represent you?
This practice of enticing a seller to change listing agents is more common in some places than in other places. There is another version of this which occurs when the seller communicates with several Realtors to decide which Realtor to list his property for sale with. One of those Realtors being interviewed or spoken to by the seller may offer to list the property as much as double or triple the market value in some market places. In others it may be only 2% or 5% more than the others are suggesting. Usually, with more unique properties, at least one Realtor will offer to list the property at 20-40% above market value, in order to get the business. Those are the same Realtors who, knowing the value of billboards, have signs all over the place that are erected to stay for a while. Those same Realtors may have no signs on their properly priced properties as a rule; so that they can sell those properties without splitting the commission with another Realtor in a co-brokerage arrangement. If you hear this type of language or see this type of operations from a Realtor; realize you have just connected to one of the 2% or less who are not fit to deal with and move on to another; don't let your own greed cost you dearly.
A property should be listed very close to market value or better yet, at market value. There IS such as thing as market value and that value can be found by a competent appraiser to within less than 2% and by a competent Realtor too in most cases - but not as an appraisal, as an opinion of value. Market value can also be shown with an honest comparative market analysis, done by a Realtor.
Nearly all buyers are intimately aware of market values for the type, location and price range of property they seek and buyers want property that is below market value not above it. Or at least they want a better property at market value. In other words most buyers are expert at the price range and location they have decided on and they will just ignore properties that are overpriced.
It is not only the Realtor who is isolated from factuality. Frequently the seller pushes the listing agent to put the property on the market far above the market value; in fact that is the case about 70-90% of the time, if a property is overvalued. An honest Realtor will advise the seller of the real value of his property and suggest that he list the property for sale, within 10-15% of the market value.
For a slower sale the property can be listed at or above market value. For a quicker sale, which saves monthly mortgage payments if the seller still makes payments, listing the property at or even a tiny little below market may be what the seller needs. It is the Realtors job to advise the seller honestly and then to abide by the sellers decision.
Now back to those who encourage sellers to change Realtors so that the buyers they have will buy the property. They are liars. If they really had a buyer, other than themselves, they would sell that property to the buyer right now and not dare wait to get the property relisted and risk losing the buyer as timing is everything. IF they did really have a buyer they would sell the property to that buyer now and co-broke with the sellers current Realtor. And if they say they can get more money than your current Realtor has it listed for or more than market value ? then if they were not misleading, they would go ahead and sell it now for the lesser amount and be a champion to their buyer -- wouldn't they?
THINK ABOUT IT!
Copyright 2000-2005 by www.JodyHudson.com
Jody Hudson has been a Realtor for 35 years across America and in Delaware.
Source for this article is: http://www.kate-jody.com/essays/whatdidyousay.html