Sunday, May 13, 2007

Emailed Question: I'm considering selling. What price would you put for my XYZ St house?

Hey George,
We don't quite work that way (but most Realtors do). Have you read any of my blog? I think this question would make for a GREAT blog! I see if I can touch upon the important points here and then do a more detailed blog later.
The problem with taking the approach of asking agents "what would you sell it for" is it results in two things, and both are counterproductive to getting you the highest net:

1) It encourages the agent to come forth with a high price. When I grew up in Real Estate, my parents learned this the hard way. They tended to go with the agent that told them the highest amount. The result was the house would sit and probably end with a price far lower than if it was property priced in the first place (80% of your potential buying pool will see your place in the first week)

Now that I'm on the inside, I see how it works. Agents that are less experienced will fluff the number in order to get the deal, knowing that it is overpriced and the seller will eventually have to drop and the agent will eventually get paid.

2) It encourages a bunch of agents to spend only 15-20 minutes coming up with a price. Instead I like to literally spend 5-10 HOURS getting the information for finding the perfect price. In part by actually going into each and every competing listing (sometimes with the seller). And then together WITH the seller, we come up with a price. That steps occurs AFTER we are hired.

Otherwise I might say "If I could tell you that I could get you $200k over what that other agents said you could get, would you hire me?" the answer might be "yes" and that is exactly why we won't do that. We won't use that trick to get your business since it harms you in the long run. (overpriced listings sit forever and tank faster, resulting in a lower net)

Also I haven't seen inside your home, and the stager will have to take a look too. We won't list a home unless it is staged. (you can read more about this on the blog at ) because it NETs the client so much more, time and time again. The emotional reaction that buyers get when they walk into a place needs to be maximized (cough cough manipulated) to the fullest to get you top dollar.

What I can tell you is that Capitol Hill is hot now. We had one buyer that lost out on five places. So make sure you pick an agent that is good at bidding wars. Bidding wars are VERY difficult and can take 8 hours straight to perform well. Many agents won't hassle with trying to get that last $10k or $20k because the incremental commissions isn't worth it. That is what I pride my firm with, getting our clients a new car because they used us. (we got one place bid up 20%! or $102,000, that was not easy)

Frank Borges LL0SA- Realtor/Broker (can I sign you up? Via Feedblitz, spam-free and not too frequent)
703/827-4006 AIM=FrankLLosa
2003 NVAR Rookie of the Year
$150M+ Personally in 2004-6
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