For Sellers / Selling Tips

When Your Selling Price is Too High, Beware!

Meeting With Realtors

So you’ve decided to sell your home and have a fairly good idea of what you think it is worth. Being a sensible home seller, you schedule appointments with three local listing agents who’ve been hanging stuff on your front doorknob for years. Each Realtor comes prepared with a "Competitive Market Analysis" on fancy paper and they each recommend a specific sales price.

Amazingly, a couple of the Realtors have come up with prices that are lower than you expected. Although they back up their recommendations with recent sales data of similar homes, you remain convinced your house is worth more. When you interview the third agent’s figures, they are much more in line with your own anticipated value, or maybe even higher. Suddenly, you are a happy and excited home seller, already counting the money.

Which Realtor Do You Choose?

If you’re like many people, you pick Realtor number three. This is an agent who seems willing to listen to your input and work with you. This is an agent that cares about putting the most money in your pocket. This is an agent that is willing to start out at your price and if you need to drop the price later, you can do that easily, right? After all, everyone else does it!

The truth is that you may have just met an agent engaging in a questionable sales practice called "buying a listing." He "bought" the listing by suggesting you might be able to get a higher sales price than the other agents recommended. Most likely, he is quite doubtful that your home will actually sell at that price. The intention from the beginning is to eventually talk you into lowering the price.

Why do agents "buy" listings? There are basically two reasons. A well-meaning and hard working agent can feel pressure from a homeowner who has an inflated perception of his home’s value. On the other hand, there are some agents who engage in this sales practice routinely.

What Happens Behind the Scenes

Whichever the case, if you start out with too high a price on your home, you may have just added to your stress level, and selling a home is stressful enough. There will be a lot of "behind the scenes" action taking place that you don’t know about.

Contract PendingContrary to popular opinion, the listing agent does not usually attempt to sell your home to a home buyer. That isn’t very efficient. Listing agents market and promote your home to the hordes of other local agents who do work with home buyers, dramatically increasing your personal sales force. During the first couple of weeks your home should be a flurry of activity with buyer’s agents coming to preview your home so they can sell it to their clients.

If the price is right.

If you and your agent have overpriced, fewer agents will preview your home. After all, they are Realtors, and it is their job to know local market conditions and home values. If your house is dramatically above market, why waste time? Their time is better spent previewing homes that are priced realistically.

Dropping Your Price… Too Late

Later, when you drop your price, your house is "old news." You will never be able to recapture that flurry of initial activity you would have had with a realistic price. Your house could take longer to sell.

Even if you do successfully sell at an above market price, your buyer will need a mortgage. The mortgage lender requires an appraisal. If comparable sales for the last six months and current market conditions do not support your sales price, the house won’t appraise. Your deal falls apart. Of course, you can always attempt to renegotiate the price, but only if the buyer is willing to listen. Your house could go "back on the market."

Once your home has fallen out of escrow or sits on the market awhile, it is harder to get a good offer. Potential buyers will think you might be getting desperate, so they will make lower offers. By overpricing your home in the beginning, you could actually end up settling for a lower price than you would have normally received.

return to top

Why Use RE/MAX?

REMAX BalloonWhen you choose a RE/MAX Sales Associate to sell your home or help you purchase a new home, you’ll experience a whole new level of service. First, RE/MAX Associates are The Hometown Experts With a World of Experience®. Across the globe, they make their living in the same communities in which they live. They’re the people next door, or just down the block. Consummate professionals, RE/MAX Associates on average lead agents of competing brands in advanced real estate education and production. That’s why they’re known as "The Real Estate Leaders®" and why no one in the world sells more real estate than RE/MAX.

dot Customer Satisfaction
The proof of quality service is in repeat customers and in customers who refer RE/MAX Associates to their friends. RE/MAX Sales Associates average 70 percent of their business from repeats and referrals, while other agents average about 30 percent from those sources.

dot Education
RE/MAX Associates lead agents of competing brands in professional designations, which denote specialized training and education. They dominate the Accredited Buyer Representative (ABR), Certified Relocation Professional (CRP), Certified Residential Specialist (CRS) and Leadership Training Graduate (LTG) ranks.

dot Miracle Home®
Why list your home with a RE/MAX Associate? Your home may be designated as a Miracle Home®. If it is, your RE/MAX Sales Associate will make a contribution on behalf of the listing and/or sale to the local hospital affiliated with the Children’s Miracle Network. The funds raised in your community remain in the area to benefit local children.

dot For All You’re Worth®
On average, RE/MAX associates sell more real estate than other agents. They are better qualified to set the right price for the homes they list, are better equipped to market those homes, and are likely to find a buyer in a shorter period of time. That experience and education also means they are better qualified to find the right home for any buyer.

dot Competitive Advantage
The real estate network that has the most competitive advantages to offer both home buyers and sellers will be an industry leader, and RE/MAX is that network. No one in the world sells more real estate than RE/MAX. When you look for the highest quality real estate service, look to a RE/MAX Associate. RE/MAX Associates are "The Real Estate Leaders®".

dot Advertising
On average, a RE/MAX Associate spends about $10,000 each year on personal promotion and on individual and group advertising. Personal advertising plus national television advertising and Internet exposure generates the highest number of prospects in the industry.

dot Network Size
The revolutionary RE/MAX Concept of enabling real estate professionals to maximize their business potential has evolved into an organization of more than 110,000 Sales Associates in more than 5,600 offices.

dot The RE/MAX Balloon Logo
The red, white and blue RE/MAX Balloon, with its "Above the Crowd®" slogan, is one of the most recognizable business logos in the world. With more than 90 RE/MAX Hot Air Balloons around the globe, RE/MAX has the world’s largest balloon fleet.

dot The Sign That Brings You Home®
The famous red-over-white-over-blue RE/MAX yard sign and your RE/MAX agent lead you to properties in areas in which you’ll want to live and work. If you want to sell your property, the RE/MAX yard sign attracts buyers. Nobody sells more real estate than RE/MAX. An Industry Leader
RE/MAX was the first real estate network to be involved in more than 1 million transaction sides in a single year. Each transaction or sale consists of two sides, the listing side and the selling side.

dot Global Expansion
With offices in more than 50 countries worldwide, RE/MAX is one of the fastest-growing real estate franchise networks on the planet.

dot Main Street. Not Wall Street.®
Being locally owned and operated, RE/MAX offices are staffed with professionals who live in the area they work in. Thus, committed to their local community, they have a deep personal interest in the customers they serve.

dot Home of the Best Agents®
In a business environment of mergers and acquisitions, RE/MAX is the only major real estate network still owned and directed by its founders. The excellence of RE/MAX Broker/Owners and Sales Associates has led to an ever-increasing number of accolades from the business community at large. "Worth" magazine honored RE/MAX with its prestigious "Readers’ Choice" award in both 1999 and 2000, naming RE/MAX the No. 1 real estate brokerage. In January 2005, "Entrepreneur" magazine ranked RE/MAX among the top 10 franchises in its 26th Annual Franchise 500 survey. It also named RE/MAX: "Best of the Best" for real estate services; the highest-ranking real estate franchise in "Low Cost Franchises"; and No. 7 overall in "America’s Top Global Franchises."

dot More Than 32 Years "Above the Crowd®"
RE/MAX – now an established industry leader – celebrated its 32nd anniversary in 2005 and looks ahead to even greater real estate achievement in the years ahead.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter