Lots of owners fall for the oldest trick in the book: the appraisal trap. Some agents tells you a huge number to get you to sign. Weeks later, they blame the market. It costs you thousands. Spotting this tactic is the first step to protecting your property value.
The trick is common because it works on human greed. We all want the highest price. Yet, the highest appraisal is rarely the highest sale price. The market determines the price, not the agent. Selecting an agent based solely on the highest quote is a recipe for a failed campaign.
When you sign with the agent who promised the highest price, the clock starts ticking. Beginning with high hopes, but reality sets in quickly. The phone doesn't ring. Viewings are empty. The agent then starts the process of "conditioning" you to accept a lower price. The process is painful, stressful, and entirely avoidable.
Agent Lies Revealed
We call this "buying the listing." The agent knows the home is worth $600k, but tells you $700k to beat the honest agent down the road. When you sign the contract, they have you locked in for 90 days. They know you can't leave, so they just wait you out.
Depending on the fact that you have a deadline to sell. Later, desperation kicks in and you lower the price. The tragic irony is that you usually end up selling for less than the honest agent quoted you, because the property is now "stale" and shop-worn.
Launch Price Effects How Buyers See It
Listing cost you set on day one is critical. Buyers have access to data. When seeing a price that is way above comparable sales, they move on. You lose the chance to create emotional connection. Honest real estate agents tell you the truth upfront.
If buyers scrolls past your ad, you don't just lose a view; you lose a bidder. Websites will stop showing your home if no one clicks on it. Web silence is deadly. Correct pricing keeps the algorithm happy and the buyers clicking.
The Overpricing Cycle And No Offers
When a listing stalls, it gets stigmatized. Everyone asks "what is wrong with it?" Although the house is perfect, the days on market tell a negative story. You end up selling for less than you would have if you priced it correctly in the beginning.
Assuming the seller is difficult or the home has hidden structural issues. Offering lowball offers because they smell blood in the water. You lose lost all negotiation leverage because you have no other interested parties to play them off against.
The Financial Cost of "Testing the Market" Adds Up
Owners say "we can always come down later." This idea is flawed. During the wait for the price to drop, you are paying holding costs. Mortgage interest, council rates, water rates, and insurance continue to pile up. Keeping a home for an extra 3 months can cost thousands in hard cash.
Also, if the market is falling, "testing the market" is dangerous. One might chase the market down, always staying 10% above where the buyers are. Once you catch up, the market value has dropped even further. Good vendors sell quickly to unlock their equity and move on.
Cost of Momentum Costs Money
Speed is money. Buyer momentum drives competition. Lacking bids, there is no leverage. Overquoting kills this momentum. Use data driven real estate advice to set a price that attracts buyers.
Spotting Lies To Protect Yourself
Demand the evidence. If they gives you a price, ask "show me the 3 sales that prove this." If the agent cannot show you 3 comparable homes that sold for that price recently, they are guessing. Refuse "gut feel" or "I have a buyer." Valuation is based on evidence.
Check their current listings. Do they have many homes "under offer" or many homes sitting for 90+ days? A rep with lots of stale stock is likely an over-quoter. Someone with lots of "sold" stickers knows how to price correctly.
Honest Advice Vs Inflated Promises
We pride ourselves on telling the truth. Even when it is not what you want to hear, honest advice saves you money. Displaying you the hard data so you can make an educated move. Select an agent who respects you enough to be real.
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