BUYING THE LISTING…

What does this mean? Well, in a nutshell, it relates to agents overpricing an owners property to get the seller to sign up. Openhomeonline strongly opposes this.

It exists and is not ethical behavior. A seller should be very wary of the agent or agency which overprices. How did they come to this figure? What is the price substantiation analysis? If an agent is trying to woo your business by giving an inflated price, you can be sure that they are out for themselves rather than the client.

I personally refer to this practice as ‘buying the listing’. An agent should be open and honest when discussing price with a seller. Is an agent simply telling me what I want to hear so that they win my business? Will this agent be capable of achieving the result they claim?

Neil Jenman, former owner of a real estate agency, turned author, industry educator and the owner of a property referrals business, says avoiding the ‘quote trap’, where agents inflate their valuations to get your business, is a top priority for sellers.

“There’s an old saying in this industry that the biggest liar gets the job,” he says. “The number one reason that agents give high valuations is to avoid losing business. The best way to protect yourself from the quote trap is to have the agent sign a quotation guarantee. This means getting the quote in writing, and signing an agreement stating that the agent won’t be paid unless that price is achieved.”

The last thing a seller wants is to be sitting on the market for months or in some cases, years. The property becomes stale, people lose interest and assume that the property is overpriced or something else is wrong with it.

We know that it’s far more important to get the price right from the start which will lead to the best result.

Regards, the team at openhomeonline.

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