Absolutely not! There is a name for this: "Buying the Listing". By promising a higher price, the agent secures your signature on the contract. Then, after a time, they will be telling you that you need to reduce the price. Meanwhile, the Realtor is using the sign on your property to find buyers for other properties when they call and find out how expensive your's is. The hard, cruel, fact is that the only way to determine the right price for your home is to examine the prices of similar properties that have attracted offers.
Everyone wants to believe that they can beat the odds, or that their house is special enough to command a higher price than other similar homes in their neighborhood. However, this rarely happens in real life. What does happen is that you will scare away buyers with your price. Those who do come to see your home will be dissapointed because it won't compare favorably with others that they can afford.
One mistake that sellers make over and over is to start out high with the expectation that people will offer lower and they will negotiate. This results in their home not getting anybody at all looking at it during the "prime time" of the listing-when it is new. By the time they reduce the price, the home has been on the market for a while and the negotiations will be much less rewarding for the seller.
Go with the agent with the most agressive marketing plan & experience.

Wed Nov 28 2007, 01:00

Absolutely not! There is a name for this: "Buying the Listing". By promising a higher price, the agent secures your signature on the contract. Then, after a time, they will be telling you that you need to reduce the price. Meanwhile, the Realtor is using the sign on your property to find buyers for other properties when they call and find out how expensive your's is. The hard, cruel, fact is that the only way to determine the right price for your home is to examine the prices of similar properties that have attracted offers.
Everyone wants to believe that they can beat the odds, or that their house is special enough to command a higher price than other similar homes in their neighborhood. However, this rarely happens in real life. What does happen is that you will scare away buyers with your price. Those who do come to see your home will be dissapointed because it won't compare favorably with others that they can afford.
One mistake that sellers make over and over is to start out high with the expectation that people will offer lower and they will negotiate. This results in their home not getting anybody at all looking at it during the "prime time" of the listing-when it is new. By the time they reduce the price, the home has been on the market for a while and the negotiations will be much less rewarding for the seller.
Go with the agent with the most agressive marketing plan & experience.

Wed Nov 28 2007, 00:48

Kelly
I think you are one of the longest term posters we have!
Which of the Realtors helped you learn the most? Aside from price, who did you think would do the best job?

Remember, the list price is designed to attract buyers. In a soft market, you want to price little under market to find more buyers. In truth, the price a willing and able buyer will agree to pay IS MARKET VALUE.

Tue Nov 27 2007, 11:40

Take a hard look at the CMAs and find a way to check your ego and look at things in perspective - it's not easy to do when you're in a home tailor fitted to your tastes and style!

The CMAs are simple math: these homes are your competition, sum up the price and divide by the number of homes. Look at all of them side-by-side. What homes are/aren't included in some and why? Does that home that sold for $100K over all the others 8 months with all those upgrades and land really comparable to yours? Should you be looking at home prices that sold 6 months ago in this market?

Did your realtor adjust the home sales price based on added/subtracted features of the home (many don't) This is when they adjust the sales price of the home compared to yours (i.e. - $10K on the sales price in the comp because they have a 30x30 deck and you don't)

Don't choose your realtor on price - choose them based on the marketing job they'll do for you home, their competence, and how their style and personality fits you. 6 months is a long time to be married to a bad realtor when you want to sell a home, and once you sign that listing agreement you're theirs. Not an easy choice, good luck and hope you find a good one!

Tue Nov 27 2007, 11:05

Hi Kelly;

Great question. To answer; not necessisarily. I'd ask that agent to show you a list of homes they've sold this year, with the list and sale price as well as the days on market for each property.

Hope this helps,

Charlie Mader
Vanguard Properties

Tue Nov 27 2007, 10:41

Please, please do not list with the highest price. Consider listing with the Realtors who is honest and tell you how the market really is. Our market sets the price today. Some agents are not good with pricing, do not know the market well or just want your listing.

Tue Nov 27 2007, 07:48

The market sets the selling price, not the price you ask for your home. Its always best to offer just under the market price and it may "adjust" as buyers make offers. By doing this you lessen the chance of having to make a reduction on your listing price, in addition you may be able to reach a wider range of buyers out there. i.e.: some buyers may have a specific cut off price point and you can capture them with a slightly lower price point on your property. Pricing your home for sale is a very emotional thing and not to be taken lightly. The real question here is "what is the market value of your home in your neighborhood at this time". No one knows for sure what the market value of their property is until it sells, kind of a "catch 22". Competitive pricing is the key to a successful sale.

Tue Nov 27 2007, 07:45

HIre the agent who will be straight with you, not simply tell you what you want to hear. Was there a wide variation in pricing?

Agents give high prices for two reasons: 1) They don't know the market (Beware.....You need an agent who knows the market.) 2) They are active in the market and disagree w/ the other. (Beware, if the majority of other Realtors think your property should be lower priced, they will not show, or they will advise their buyers they think it is overpriced.) 3) They are afraid to tell you what you might not want to hear.

If an agent lacks sufficient confidence to put the facts on the table regarding pricing, how will the agent be in communicating any other messages that need to be conveyed to the seller? Sometimes, we, as agents have to quote the line, "Don't shoot the messenger." and we have to be strong enough to tell our clients what needs to be done to get the highest and best price.

Pricing competitively generates market attention. Overpricing helps sell the competition. Do price competitively to assure yourself the best chance of sellling at the highest price.

Best of luck.

Tue Nov 27 2007, 05:25

No! Never in this market. If you list with the agent that gives you the most favorable price, when the listing expires and you have to list with a different agent, the market price will be lower than it is now. Go with the agent that makes the most sense! Study the comparable given to you. View some of the other homes to see what your competition is so you can make a wise choice.

Tue Nov 27 2007, 04:56

Kelly, I agree with what most of my colleagues have said. In this market especially, don't go with the "highest priced" agent- hoping that they will get that for you. Look at not only what has sold, but what is on the market similar to your home. As I told some of my clients just this morning- we don't only look at the recent sales, but in a softening market we need to look at what our competition is, because if we are priced above most of the competition no one is going to look at your home.

Keeping an overpriced listing on the market is lots of HARD work! Especially if you might have children. Keeping it "showing perfect" at all times is no easy feat! Do you want the stress to last 30 days, 90 days or more? The better priced, the faster it gets sold.

If your market is softening up there, you will not only be on the market longer- you'll end up selling for far less as you ride the market down.

Your price needs to be determined by what else is on the market. NO AGENT is going to get you more than your home is worth- especially right now.

You need to look at what each agent does to market your property- their track record- testimonials from past clients (which you might want to check- asking to see a copy of the MLS from when their home was listed, so you know they really were clients). Use an agent who is really involved in a lot in the community- the more exposure a STRONG exposure on the internet- not just their own website- but that they commonly post your listings in a number of different venues- 82% of today's buyer's are coming through the internet. Also, if a personal approach is important to you, make certain that the agent you hire is who will be taking care of you- not a staff. That may, or may not be important to you- but look for what type of professional relationship you want, and make sure that is their typical MO in dealing with their clients.

Those are the reasons for choosing an agent- not a promise of something they CAN'T achieve!

Best of luck to you in finding an agent you will like and trust to do the best job for you!

Patti Phillips
800-680-9133

Mon Nov 26 2007, 12:38

Kelly, Since choosing the price to market for a home is not a science, consider choosing the agent (broker) that presents you with Plan A, PlanB and Plan C for pricing and marketing. Plan A is the plan to market your home at a price determined by comparable sales that positions your home as the best home for its price Today. This price, and this marketing may not prove to be the one that produces an offer at a price you will accept. Plan B is the price and marketing plan that goes into effect 21 days after Plan A does not work, and Plan C goes into effect thirty days after Plan B. Flexibility in response to Market Forces is important. You do not want to be "chasing the train as it leaves the station" in terms of lowering your price to meet the present market. Get a confident, productive and optimistic agent that does not overprice to "buy" your listing. Be flexible, and ask for the data (what has sold, what is new on the market) every week - analyze the data to see how your home is positioned among the others for sale. Best of everything to you. Liz Stevens, Windermere in Berkeley

Mon Nov 26 2007, 12:04

Kelly,
Since I wasn't one of the three you've interviewed and I'm so far the only agent in San Francisco that has responded I feel it's fair to point out that SF is a very unique market. Don't price your house high it won't sell. You will have to reduce and then it will sell for over asking. A case in point was a property listed at $749K no offer for 30 days reduced to $687K and within 10 days an offer for $714K. My point is, if the market value was 714K, why didn't it get an offer at 749K. Buyers and their agents in this market, watch and wait for overpriced listings to be reduced. Under price the property and buyers and their agents will beat a path to your door.
Choose the agent that is the most competent and with whom you feel the most comfortable and able to communicate.
Jed Lane

Mon Nov 26 2007, 12:00

Hi Kelly:

The agent who recommends the highest price might not be the best unless the agent can substantiate the price with compelling reasons.

For comparables they provided to come up with the price, make sure they explain to you why they believe that’s the right price for your home.

If you overprice it to find the perfect buyer, are you willing to wait? Will the prices drop while you are waiting? Is your location one of those super macro locations in the Bay Area where the price stays or goes up?

Sometimes an agent will overprice the home just to get the listing and then you will sit, wait and drop the price; but on the other hand, an agent can come in with lower listing price so they can sell it quickly.
In interviewing the three agents, I am sure you have looked at their track record, their marketing plan and samples (if any) of what they do for their clients, their support system, their (or their brokerage) market presence, the communication plan,ect. Do you ‘click’ with them? How about the references? Who are the best out of the three? Why?

Draw up the pros and cons and go from there, not just by price alone. If none of the three works for you, then look for the fourth one.

Good luck,
Sylvia

Mon Nov 26 2007, 11:52

Depends. If that's the sole reason, then no. ie if this agent seemed substandard in every way, but told you he/she could get $50K more than the other agents, then this may not be the right agent.

Ridiculous example: I haven't seen your home, I don't even know where it is, and I don't know its specs. I'll offer to list it for $10M. Am I hired?

Mon Nov 26 2007, 11:40

You interviewed 3 agents, what did the other two agents say about price? Were their suggested price close in range? If so, chances are the highest price is overpriced.

There are some agents that give a high price to win the listing and then beg the seller down. If you have seen all the recent solds and current pendings that are comparable than your home then you should see where your home should be priced. In this market, you want to be priced a little below the last sold property that was comparable.

Mon Nov 26 2007, 11:33

I would not recommend making your decision based on that. How does that price compare with the CMA(comparative market analysis) in showing what homes have sold for in your neighborhood in the last few months? That's what your asking price should be based on. Not actives, solds.

Mon Nov 26 2007, 11:25

Beware of some agents who will “buy” your listing by recommending a list price that is significantly higher than other agents competing for the listing.
Realtors use the same source for real estate sales data to determine the range of fair market value for a property. If you interview three or more seasoned agents who are familiar with local real estate values and market conditions, there should not be a wide variation of recommended list prices between them.

Mon Nov 26 2007, 11:23