Many people we talk with, discuss Real Estate services as a commodity. That couldn’t be farther from the truth. Not all brokers, agents, or affiliated partner services are the same nor equal in their offering. Because of the various options available to buyers and sellers, a number of different business models are available to them. Their specific needs, goals and finances will determine the “correct” service for them.
However, Real Estate itself is a commodity, albeit one tied to emotional factors because we often put our personal stamp on the property. Each and every property has a market value. That value is based on location, size, and physical condition. Also, let us not forget local economic conditions play a part. Very basic economics of supply and demand.
And as agents, we try to bring the two components of Real Estate services to sell a property and the actual commodity value of the property together to achieve success for our clients.
An agent can bring the best they can to the table.
- Marketing programs that reach thousands of prospective buyers
- Subsidiary services (photographers, stagers, measurers, etc.) to put the property in its best light
They will invest potentially upwards of thousands of dollars in those programs and time in terms of services, networking, open houses, etc. to help you sell.
But all that can go for naught if commodity of the property is not in line with the current market.
Price a house too high in an up market and you risk taking too long to sell and missing the next opportunity for you.
Price a house too high in a down market and you will spell disaster. You may very well end up “chasing the market”.
You made the decision to sell. Most likely there was a lot of emotion in the decision. That said, once it goes to market, both you AND your agent have a vested interest in selling.
So when your agent provides you with weekly feedback that does not include an offer, you should expect the conversation about reviewing the price based on current market activity.
When that day happens, you have two choices – listen, adjust, and keep up with the commodity pricing. Or, ignore them and hope you are right and can beat the market.
Supply and demand is why your agent is always cognizant of the price.
To them, it is a commodity that has expenses tied to it.
You hired your agent to help you sell your property. Hopefully you hired them because you trust they have your best interests in mind. You trust they will deliver on their services and will work hard for you.
Hopefully, you trust them enough to listen to them when they bring up pricing.