When a prospective seller interviews a Realtor to sell their home, these two questions seem to be the most important.
Wouldn’t a typical seller lean to the Realtor who gives them the highest price and cheapest commission? Most sellers are only concerned about how much money is left in their pocket at the end of the day.
Agent A tells you he can get you $800,000 for your home and charge you 5%
Agent B tells you he can get you $850,000 and only charges 3.5%
I bet by now the seller has forgotten “Agent A’s” name already. This is referred to as “buying the listing”
If you called 10 different agents to come give you an opinion of value for your home, do you think all 10 agents would give you the same price? or different prices?
So how do Realtors arrive at a price of a home anyways?
To determine a “list price” of a home, Realtors look up previous comparable sales in the area or building and arrive at a price they feel they can achieve in todays current market.
Heres what I never understood.
Don’t all Realtors have the same comparable sales?
How can one Realtor say the subject home is worth more than what another Realtor can?
Would telling a seller a higher price give an agent a better chance at getting the listing?
Don’t Realtors sell properties under the list price, and today more commonly over the list price all the time?
If the Realtor really knew the exact price of a home wouldn’t they always sell properties for 100% of the asking price every single time?
Here’s my 2 cents
No Realtor, No neighbor, and no friend know exactly what a home is worth. Only the buyer who purchases the property dictates the exact value (“market value”) of what a property is worth. What a Realtor can do is give you a “range” in which your home falls in, based on comparable sales that all 38,000+ Realtors on TREB have access to. The question I believe sellers should be thinking about is, how do I get the top end of that “range” (And no its not always $50,000 more than your neighbors) lol
There is a big difference between selling a home and getting the most money for a home.
Truth is, you do NOT need to be a Realtor to just sell a property!
Thanks for reading!!