Buying a Listing
September 5, 2010
You’ve decided to sell your home and you think you know what it’s worth. So you set up a few appointments with the local Realtors that have been mailing you their postcards for years. Each real estate professional provides a “Competitive Market Analysis” for you showing their opinion of the current market value of your home.
Oddly enough the first two Realtors have come up with probable sales prices similar to one another, yet below what you feel your home is worth. You’re quite frustrated. But then you meet with the third Realtor and he presents his Competitive Market Analysis which shows your home worth significantly more than the first two Realtors seemed to think it was worth.
If you’re like most people the news the third agent brings puts a smile to your face. You hire him on the spot. Clearly he is going to work harder for you to bring in top dollar for your home. If the first two agents had such a low opinion on the value of your home how are they going to negotiate and bring in the best and highest contract?
The third Realtor just engaged in a practice called “Buying a Listing”
He “bought” the listing by suggesting you might be able to get a higher sales price than the other agents recommended. More than likely he knows fully well you will never sell at the suggested list price. But he knows once he secures the listing (buys it!) he will probably be able to convince you to reduce the price over time.
Why do some agents buy listings?
Because it works. It is human nature to want to be around people that say things that make you feel good. The liar that tells you that your home is worth more than it really is worth is taking advantage of basic human psychology. He says what you want to hear, which makes you happy, and you hire him. Then, over time, he slowly breaks it to you that your home mysteriously isn’t attracting any buyers and he suggests repeated price drops.
As a Realtor who doesn’t believe in buying a listing I strongly suggest you don’t reward the liar by giving him or her repeated price reductions. His dishonesty and unethical behavior cost you time and money.