When I say “Buying a Listing,” I’m not referring to the actual act of buying a home. Instead I am referring to industry agent to agent jargon. It refers to an unethical trick where some listing agents will inflate the recommended list price in order to win the deal.
I have referred to my mother several times in my blog. I’ve learned more about real estate from her than anybody else, oftentimes from her mistakes. She was never an agent, but sold several homes over the last 20 years. She would frequently fall for the “Buying a Listing” trick. She would interview 3 agents and inevitably pick the agent that would promise her the highest price. But her homes would sit and drop. Only after being on the inside did I learn that this was a technique used to win business.
So now when I meet a seller, I don’t give a price recommendation! Pretty counterintuitive heah? And you might be thinking, “I thought that was the #1 value you brought to the table. If not that, what the hell are you good for anyway?” This is why I don’t:
- Picking an agent based on their list price recommendation is ultimately the worse choice you can make. I’ve said before, “So they told you $640,000? What if I told you $675,000, would you hire me then?” And the answer is frequently YES!, with a hint of saliva glimmering from the corner of their mouth. Well that is EXACTLY why I won’t tell you a price!
- Many agents will spend only 20 minutes printing out a list of recently sold homes, and they come up with a range. (sidenote: I don’t get ranges. Everyone wants and expects the TOP of that range, right?) But more importantly, it can take upwards of 5 to 10 hours to come up with a price and that is done WITH the client (maybe another post will detail this process). So, I won’t spend several hours on a listing, if I haven’t even been hired yet. You get my full attention… after you hire me.
I also don’t like the agent vs client mentality. It is counterproductive, when it should be more of a collaboration.
Once I went to a “large” real estate company meeting to teach them about blogging. The broker ended the meeting with a pep rally style, “Now go out there and get some price reductions!” Are you kidding me? It shouldn’t be a battle between the agent and the client, but instead the agent fighting to NET the client more. Being a partner in the process, not a smug know-it-all looking after the agent’s best interest.
If you pick an agent based on the highest recommended list price, be prepared to SIT, DROP and NET less.
Written by FranklyRealty.com Broker Frank Borges LL0SA, and I approved this message.
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