COMMON MISTAKE #1 – List with the agent who suggests the highest list price

This is oh-so common and it just kills me.  If you interview 3 REALTORs when considering selling your home, you’re bound to get a variety of opinions of what your house would likely fetch.  REALTORs typically use a Comparative Market Analysis (CMA) to determine the value range of your home.  (Stay tuned for an upcoming post explaining how a CMA works) However, CMAs are not all the same, and one’s skill and knowledge in researching and compiling a CMA can dramatically impact the results.

What’s worse, occasionally an Agent might be inclined to “favor” higher-valued homes when selecting comparable properties.  Whether intentional or unintentional, a bias can result in a CMA that is not as good a picture of the value of your home.  It would not be unheard of for an Agent to suggest a higher-than-realistic value of your home in hopes of getting the listing contract, and then work to persuade you to reduce your price later – once you’re under contract.   

The problem is that, depending on marketplace conditions, the first few weeks are often the time of greatest activity and interest in your property – the “fresh meat”, so to speak.  If your home is overpriced at the onset, you might miss out on prospective buyers that don’t come back to revisit it once you get realistic with your price.

One of the things I’m fond of saying in my Real Estate practice, tongue-in-cheek of course, is “If you’re going to make your decision based on who writes the highest number on a piece of paper, what number to I have to write to earn your business?”

This obviously highlights why this strategy isn’t the right one.

Be weary of someone who sings a song that sounds too sweet.

Josh Nekrep

Josh Nekrep

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