Two of the biggest mistakes home sellers make when choosing a listing agent are selecting an agent solely based on:
1. Highest list price for your home
2. Lowest commission
At first glance, a seller might say, “What? Are you nuts?” Because sellers want the highest possible price and to pay the least amount of commission. But those two criteria have very little to do with hiring a competent agent and, in many instances, are completely irrelevant.
Let’s look at why.
The Highest Suggested List Price
Agents can’t tell you how much your home will sell for. That’s a fallacy. A listing agent can show you comparable sales, pending sales, and active sales. But YOU choose the sales price and a buyer will tell you if the price is right.
• To get the listing, some agents distort the truth.
Since agents can’t guarantee your sales price, the listing agent who suggests the highest price is probably untruthful. Ask the agent to show you numbers supporting that suggested list price. They probably won’t have them or the home sales will be located in a different neighborhood.
• Look for a listing agent who gives you a range.
There is always a price range. It might be apart $10,000 on the low-end versus the high, or the spread might be greater. Many factors determine the range, among which are location, the temperature of the market, and improvements.
• Pricing is an art.
The best time for an offer is within the first 30 days on market. If the home is priced right, you’ll get an offer. If it’s priced too high, you might not get any showings at all; buyers will shun your home and you’ll eventually end up reducing the price, leaving buyers wondering what’s wrong with your house.