When we as Realtors assess the most difficult part of our work day, it usually falls to one item - convincing the sellers to list their home at the proper price. Selling a home isn’t a fishing trip where we cast a line out and try our luck! It’s about selling the home.
A seller’s biggest fear is the thought of selling to too low. Sellers imagine leaving thousands of dollars on the table. We hear lines from worrisome sellers every day.
“Let’s ask more because we can always come down.”
“My neighbour said my home is worth more.”
“I have to get ‘x’ number of dollars because we’re buying a camper.”
“I can’t sell for a dollar less than ‘x’ because I owe a mortgage payout.”
No matter what your wants and aims are, a home sells for market value. It’s often not what you want or what you’ve been told you will get. Have a quality realtor do a Comparative Market Analysis. Have him or her explain how they came up with the price. After that, market your home accordingly.
Sellers often call three Realtors and get three prices. Invariably they choose the highest price they were told. Never do they ask the agent with the lower price why and how they came up with that number. We see it all too often! We offer our opinion of value on a house, only to see it listed with another realtor a week or two later for 20k, 30k and sometimes 50k more. Ultimately, when these listings do finally sell, it is 4 to 6 months later, and within $5,000 of the price we told them.
Sellers should ask the realtor to explain how they came up with that price, and to be shown the comparables. How active is the agent is in their area? What level of experience do they have? Ask for the names of two of their recent sellers so you can speak with them. What is their average Days-On-Market (DOM)? What is their ratio of initial list-price to sale price? What is the percentage of their listings that sell versus expiring? These are all questions a quality realtor should be able to answer quickly and easily.
Make sure your prospective agent is readily available. A real estate agent with a hidden call back number should be a concern. Call the three agents you interviewed and see who answers their phone. Send them an email to see how quickly they respond. If they are difficult to reach when trying to earn your business, how available are they going to be to prospective buyers who want to view your home or to other realtors with questions or trying to book a viewing?
When we list at the sellers suggested price everyone leave the table happy. It was a great experience, Seller’s price… Realtor’s promise… What could go wrong? Try a listing where the phone doesn’t ring and the real estate industry puts that listing to the back burner. When a seller lists their home, the friends and neighbours all start to ask questions… Any offers yet? How many showings? Any offers? It won’t be long before the seller blames the realtor. They will say we picked the wrong agent. We should have picked the other one. And they were probably right on both counts…
Over-priced listings are always a sad story. Avoid that at all cost!
Chad Moore - Sales Representative
John E. Smith Realty Sudbury Limited Brokerage
353 Lorne street
Sudbury, Ontario P3C 4R1
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