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.
A Sales Practice Called
"Buying a Listing"
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,
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
Why do some agents "buy"
listings this way?
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.