When a Realtor Just Tells You The [Price] You Want To Hear!

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One of the first questions home owners ask Real Estate Agents when they think of listing their home for sale is “How much do you think we can get?” or “How much would you list it for?”

A common error that sellers make (when choosing a Toronto Real Estate Agent to sell their property is to select the one who merely suggests the highest listing/asking price for the property.

I remember many years ago when I first began in real estate another agent told me if I want to get more listings I should always say the highest price to get the client to sign, and then just reduce the price a week later. I always say you either have integrity or you don’t. You can’t learn it.

Clearly that individual did not have integrity. And since I always have to do what’s right I basically never took any advice from that person.

Now after many years working in Real Estate in Toronto here is what I always tell my clients, or even newer Realtors when I have the privilege of mentoring them.

I say: “Always Remember  The Asking Price Is NOT The Final Selling Price.”   

The asking price is part of marketing your property. Remember that some properties sell for under asking price, some over asking price, and some at full asking price.

But when a Buyer is searching online for properties to visit they search within their budget. They also likely have an agent (a Buyer’s Agent) helping them.

So if your property is vastly over-priced they will know and they likely won’t bother coming to see it.

If your property is vastly under-priced you could put a turnstile at your front door because you’ll get a million showings, which increases the chances of selling your home at a higher price in a shorter amount of time.

So when you choose a listing price it’s just as influential as the photographs are to the listing for getting more people to see your property.

For more info on Toronto real estate pricing strategies check out my video post called:

“Are There Risks To [Underpricing] Your Home & Why Some Do It” where I discuss 3 pricing strategies in detail along with the risks & benefits.

But to the point of this video, hiring the Realtor who merely tells you that your home is worth more than other Realtors tell you … if there isn’t supporting evidence of that price, then you might be setting yourself up to fall into a trap.

An Realtor might tell a seller the price they want to hear just to convince the seller to sign the Listing Agreement.  

And then when they realize there are very few showings and no offers received, that Realtor will push the Seller to reduce the asking price … ultimately to the price where the more honest Realtors said it should’ve been in the first place.

The problem is your listing “history” that appears on M.L.S. (Realtor.ca) never disappears. So if buyer’s see you’ve been on the market too long your listing goes “stale”.  

So when interviewing a Realtor focus on 2 things when it comes to the listing price:

a) ask them “how does the recommended LISTING price factor into their pricing strategy?”, 

b) ask them “what they think the home will ultimately sell for” (which might be different than the asking price).

A Realtor cannot tell you exactly how much your home will sell for. NOBODY has a crystal ball.

When determining a listing/asking price for your property, an Realtor will show you comparable sales in your area and current active listings in your area (your competition).

The BEST agents are able to predict the short-term direction the market is going in, and how your property is valued in the eyes of potential buyers in comparison to the other properties for sale in your area.

Remember that those sellers are competing for the same pool of potential buyers that you are. And those buyers will also look at the other homes for sale in your area.

Here’s a TIP: ALWAYS TALK ABOUT A PRICE RANGE.

Nobody knows the exact price a property will sell for until it is sold. The better agents can predict a narrow range. When I meet with clients to determine an asking price to list their home, we always narrow our calculations to a price range.

When you ask a stockbroker what a stock is worth, an inexperienced  broker will tell you that XYZ stock is worth $20.00. A professional and knowledgeable stockbroker, however, will tell you that XYZ stock is currently trading between $18.75 & $21.50!

So, when I meet with Sellers I provide evidence that a property nearby with the exact same size, features, etc sold for “X” and  another 2 properties might be asking “Y” & “Z”

When a Realtor over-promises but under-delivers then the entire process becomes stressful & disappointing.

But when I manage client expectations it ensures a smooth & stress free experience for them. And in the end when I deliver what I promised (or more) they are even happier!
 
The truth is you have to be careful because unfortunately some agent will over-promise just to get you to sign the contract.

Because once you sign the contract you can’t cancel with them. I’ve always found it’s better to be truthful. And I’ve always aimed to under-promise and OVER-DELIVER results.

To nobody’s surprise, when you over-deliver (exceed expectations) it works out a lot better for everyone in the end than the alternative.

If you want to talk pricing strategy or market trends in your area, or what your property is worth don’t hesitate to ask me.

You can email or call me any time.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]