Imagine that it’s time to sell your home. You start the process by interviewing a few agents, and one agent suggests a higher list price than the others. Everyone wants more money so, as the seller, a higher price sounds better and you decide to list with the higher promising agent.
The agent is thrilled that you’ve chosen them. Why? Not because your house is going to sell quickly. You were hoping to sell in less than 30 days, but no one is making offers. You have no clue why your home is not selling. You priced it how the agent advised. What’s going on?
In truth, the agent has scripted the perfect scenario for themselves and you unknowingly fell for it. Your home will sit on the market for weeks or months because it’s deliberately overpriced.
Overpricing a home so it will linger on the market is a proven and practiced strategy for some agents. Believe it or not, it’s all about the sign they put in your yard. That sign costs them nothing to place on your property, but it helps to generate leads for the agent who placed it there. The longer a home sits on the market with that sign out front, the more buyer leads the listing agent will get.
This is the only lead source for many agents. You only have to look around to see the proof. Have you heard of any of the agents on the real estate signs you see? The only time you see their name is when it’s on a yard sign. Most of these agents sell around ten homes a year and the only advertising they do is free to them. This is the strategy they have chosen, and it works for these underachievers.
The truth is, most real estate agents are lucky to stumble into about 4 leads per month. At the Dale Ross Realty Group, we average 31 leads per week. That’s the difference between proactive marketing and relying on a few scattered signs.
This newspaper you are reading is a great example of how our marketing is different. This alone is responsible for about 600 inquiries every year, despite the fact that some people say that printed media doesn’t work anymore. It doesn’t work for most people because most people don’t know how to use it. When it comes to Realtors, most don’t know how to leverage marketing at all.
Here’s a trivia question: How many Realtors do you think there are in Houston? If you guessed around 35,000, then you guessed just under the actual number. Now, how many agents can you name? I’m guessing you can name 10, at best. Now, out of those, how many do you see consistently marketing?
I’ll admit, it’s difficult to tell an honest market analysis from a bogus one when interviewing agents. I put my reputation of 38 years and my listing contract on the line when I provide pricing information. If you are ever unhappy with my services, you can terminate your listing agreement at no charge. Who else offers that kind of peace of mind?
Honesty is my policy. Regardless of what you WANT to hear, I advise what you NEED to hear to plan your future. I guess that’s why generations of clients keep coming back to me during my 38 years in the business.
So back to my original question, what is the advantage of overpricing your home when putting it on the market? Well, it all depends on who you ask.
Until next month, Dale Ross,