Tell Me What I Want To Hear
Buyers and Sellers are ready to act they pay a lot of attention to the
goings on of the market. There is an abundance of information available
from a variety of sources that allows them to become very familiar with
their position in the market with minimal effort. Armed with that
knowledge, they call an Agent. Then the games begin.
time Agents work in the market every day. They know of the new listings,
as well as the homes that are about to be listed. They know about some
of the sales that haven't closed yet and where they will take the
market. They know how Loan Underwriters are behaving, or misbehaving.
With all that information and their real estate knowledge, it is amazing
how often they will get bamboozled by the Buyer or Seller that only
wants to hear information that advances their personal agenda. This
usually involves pricing and a customer's strong initial stated position
based on hope, want, ego, but not supported by the facts of their
that tells you what you want to hear, especially when you know in your
heart of hearts that it just can't be true, is not working for you. Why
would an Agent do that? They may be inexperienced or the property is in a
market niche unfamiliar to them. They may need inventory, want a place
to put a sign, or are going to use the oldest trick in the book. Oldest
trick in the book? List high and then grind the Seller week after week
for a price reduction.
things occur in such circumstances. You list high and routinely reduce
your price until you finally reach market value and it sells. Or, the
market catches up to you and you sell, but if you are buying in a rising
market your replacement property has also gone up in price. Not so bad
if moving down, but if you are moving up you've lost overall. The third
option is the listing expires, you haven't sold, and you've lost time
from your life waiting in vain.
are few dumb Buyers today. If they arrive uninformed it is the duty of
the Agent to inform them so they don't apply their home town values to
homes they see here. That works both ways, up and down. Buyers from the
mid-west have sticker shock at how high our prices are while most from
California are shocked at how much they can buy for their money. A Buyer
that will pay too much for a specific reason can happen, but to troll
for the one that will pay too much out of ignorance is not in anybody's
don't have a specialty property that can be worth more to a unique Buyer
than what is otherwise market value, don't con your Agent in to listing
it at a ridiculous price. If you aren't interested in selling, don't
sell. The same applies to Buyers. Yesterday's gone. If you aren't
accepting today's values and your Agent is telling you what you want to
hear, you won't be buying a home anytime soon.
important to understand that Agents don't set the price. Willing Buyers
and Sellers set the price. It takes both. Pricing in real estate is not
an exact science, but most objective Agents assessing a property for
marketing will be fairly close to the same number. In a dynamic market
such as we are now in, some may push the price of a new listing a little
to see what the market will bear. When an Agent lists something at
twice the realistic market value, however, something is awry. Who is
doing the talking during the strategy sessions? What are you hearing?
Be aware that most instances where the customer manipulates the Agent
into saying what they want to hear is the result of the customer taking
information out of context from the whole of the market. They may get
led down the path you want them to travel, but it doesn't change the
market, only your Agent's view of the market as she looks at it from
your tainted perspective. Don't shop Agents until you hear what you
If you aren't toying with the market don't play with your Agent. Set realistic objectives and make a plan to achieve them.
When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless!