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The Pitfalls of an Inflated Asking Price

posted May 14, 2012, 12:04 PM by Almohajer Aljadeed
By: Rhys Trenhaile

Let’s face it: it’s human nature to believe our home is worth more than what it’s actually worth (some of us are worse than others in this regard!!).
A good real estate agent, through thorough analysis of recent sales records and current active listings, will give you a more accurate idea of what your place is approximately worth, and what the listing price should be. It may not be what you expected, but the facts are the facts.
However, many of us will still choose to go with the agent that agrees with your idea of value, happy that you’ve found one that agrees with you. Heck, you’re already counting the money off the sale!

Unfortunately, within the industry, this is what we as Realtors call “Buying the Listing”, which in my opinion is a questionable sales practice. That agent just "bought" your listing by suggesting you might be able to get a higher sales price than other agents recommended. It is extremely likely that the agent is quite doubtful that your home will actually sell at that price. Their intention from the beginning is to eventually talk you into lowering the price.
Agents “buy” listings this way for really only one of two reasons. A well-meaning and hard working agent can feel pressure from a homeowner who has an inflated perception of his home’s value. On the other hand, there are some agents who engage in this sales practice routinely.

Regardless of reason, avoid over-listing your property, as it only harms you. A couple of years ago, during the red hot sales period, you may have got lucky; but right now, you have many more listings to compete against, and a slightly smaller Buyer pool as well.

As of the end of March, 2012, Windsor's real estate sales are up 14.85% and the average home price is up 10.51%, so if you have been waiting to sell for better times -- those times are now back.