Question Details

Mary, Home Seller in eastern shore

What about a realtor setting the listing price low because they or someone in the office secretly would like?

Asked by Mary, eastern shore Sat May 3, 2008

to buy the house low?

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4
I have to second J.R. on his added advice...'And many times, the realtor decides to walk away" ......

Many agents have to do this and many more agents need to learn how to do this.

It has been a while but I remember something a broker said about being the agent that has "the over priced pink elephant on the block". it sounds funny but it's true. Who really wants to be that agent that has the overpriced house that they cannot get rid of, then after several months and several ad. dollars later the "SUPER" agent comes in; sets it at the price it should have been set at in the first place, and walks away with the money that you earned many times over.

DON'T BE THAT AGENT. :o)


Point being....The market sets the price, always. Agents do not benifit from over-pricing or under-pricing a home...( at the suggestion of the seller/owner or anone else) A home with the right price will sale. It is in the best interest of the seller and the agent (not to mention the agents reputation) to price the home right from the start.

The poster who suggested a net comiission is way off...net commissions are almost , if not completely taboo. It saddens me to think there is still ignorance like that advice being spread around. It simple is not true!

Blessings,
Tiffany
1 vote Thank Flag Link Sat May 3, 2008
It's fairly easy to set a 'fail-safe' against this sort of (ominous music plays) "evil-backstabbing Realtor treachery". And that can be done by having 2 or 3 agents give you market analyses.

Clearly you believe that an agent is deceptive enough to try to serve their own selfish needs over yours. But do you really believe that 3 different agents from 3 different agencies would get together in their Mercedes, out in front of your house, and decide together, "let's not give Mary a market evaluation over $335,000... 'cause I have a client who wants to buy a house like this, but they don't have a penny more than $335,000 to spend."

In your prior post, you indicated that your agent had already given you a "low" price, but that prior to hearing that price, she had been your "Trusted" agent. Now... call in two more agents, and see if they agree or disagree. That should give you a definite "trend" in pricing. If the two new agents come in drastically higher than the "Trusted" agent... maybe you were right.

If they all come in similarly priced, you may want to rethink your opinion.
1 vote Thank Flag Link Sat May 3, 2008
Alan May, Real Estate Pro in Evanston, IL
MVP'08
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So, the Realtor suggests. The owner decides.

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And many times, the realtor decides to walk away......
1 vote Thank Flag Link Sat May 3, 2008
A Realtor suggesting setting the listing price low because they'd like to buy the house cheaply would be a violation of the code of ethics. A Realtor's responsibility (and I don't have the exact language in front of me) is to represent the best interests of the client. Suggesting setting a price such as you describe wouldn't be representing the client's best interests.

However, keep in mind that Realtors do not set the listing price. The owner sets the listing price. The Realtor may (and should) provide his/her advice on possible listing prices, and the advantages and drawbacks to each. (Typically, higher price equals longer days on market and, in this market, a risk of not selling at all. A lower price will typically sell a house faster. But you knew that...)

So, the Realtor suggests. The owner decides.

Hope that helps.
0 votes Thank Flag Link Sat May 3, 2008
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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