If you're selling your home, there's a certain kind of real estate agent you must be aware of: the agent willing to buy your listing. They're not technically being dishonest, but you should be aware of what's happening in such scenarios. What does "buying your listing" mean? Well, in simple terms, it simply means that the agent wants to put a sign in your yard, bearing their company's name and phone number. Why? Because they want to use your property as advertising to generate phone calls from prospective buyers. Here's how it works: The listing agent makes a presentation, telling you how much they think your home should sell for. Generally, the agent has done a significant amount of research, so they know with reasonable certainty what your home will sell for. However, if you disagree and want to list it at a price considerably higher, one of two things will happen. An agent who is hoping to get your listing at a price that will sell, thereby fulfilling their obligation to you, will try to get you to accept their opinion as to the selling price. However, an agent just wanting a sign in your yard will often just accept your selling price, even though they know that the chances of your home selling at that price are slim. In essence, the agent has bought your listing, but you'll get essentially nothing in return for the next six months. However, back at the office, the phone will begin to ring as people driving around your neighborhood call to inquire about the price, thus generating more business for the real estate agent. What happens during those inquiries? Well, the agent tells the prospective buyer the price, which generally will prompt a moment of astonished silence on the phone. After all, buyers are generally knowledgeable about the value of houses in their target area, so they'll know full well that your home is overpriced. After the silence, the agent will tell the homeowner that they know your listing is out of line, but they know of several other possible candidates that the caller may want to look at that are more within the range they are considering. If an agent seems to have accepted your listing price, even though there was a significant disparity between what they proposed and what you have asked, be wary. Your listing won't generate a sale for you, but it will generate calls--and sales--for other listings in the area that owners have priced properly. Copyright 2006 Jeanette J. Fisher |
