Misconceptions About The
Sale Process
And What A Listing Agent Does & Doesn’t Do
When it comes to listing a home for sale, there are
some misconceptions about the sale process and what a listing agent does and
doesn’t do to facilitate getting the property to an act of sale.
MISCONCEPTION #1:
The Listing Agent “Sells” The House
No agent, no matter how good they are, can “sell” a
house to a buyer. No buyer is going to let any agent “sell” them an item
costing hundreds of thousands of dollars unless the buyer sees value in the
property and therefore wants to buy it. In truth, the house must “sell” the
house. This is because once a buyer sees the property, the buyer will probably
get into a “comparison shopping” mode comparing the seller’s home with all the
other homes the buyer has seen and then make the decision to either buy or not
buy based on those comparisons. The price the buyer will pay will also be based
on the comparison of the seller’s home to the other homes (i.e., the
“competition”) on the market. The seller’s home must stand on its own! I will
offer suggestions that will make your home as attractive as possible to a
prospective buyer.
MISCONCEPTION #2:
The Agent Determines The Value Of The Property
Although an agent may “interpret” the value of the
seller’s home based on current market data, the agent by no means determines
the value of the property. In truth, the value of the property is set by two
people - the buyer and the lender’s appraiser. The first person to set the
value of the property is the buyer. What is the buyer willing to pay for the
house? Again, this price is usually based on the buyer’s comparison of the
seller’s home to the other homes on the market. But, let’s say a buyer is
willing to pay much more than is indicated by the current market data (i.e.,
recent sales of comparable property). This is where the lender’s appraiser
steps in to give his opinion of value of the seller’s home. The appraiser is
there to help ensure that the lender (who is the actual client of the appraiser
even though the buyer pays for the appraisal) does not lend too much money on
the house. Think about it – if you were lending your own money as a mortgage on
a piece of property wouldn’t you want to make sure that if the borrower
defaulted on your mortgage that you could sell the property for enough money to
recover the amount you lent the buyer? So, even though a buyer may be willing
to pay X for a house, the appraiser may say it’s only worth Y and that limits
the value of a seller’s home.
MISCONCEPTION #3:
The Agent’s Main Job Is To Get A Good Offer On The Property
Many people think that an agent’s primary job is to
get a good offer on the property. This is not correct. The agent’s main job is
to get the seller to an act of sale - not to just get a good offer on the
house. If you look at the sale process like a baseball game, then getting a
good offer is only like getting to first base. The real goal is to get the
seller to home plate – an act of sale! Getting to 2nd base is
getting through the property inspection phase of the process. Getting to 3rd
base is getting through all the other issues related to the sale process such
as helping ensure the buyer gets the loan, dealing with repairs, dealing with
tenants, etc… A good agent will “bulletproof” the transaction so as to
dramatically increase the chances of the seller not only going “under contract”
but also going to an act of sale! I will offer suggestions and strategies that
will significantly increase our chances of getting to a closing!
MISCONCEPTION #4:
The Highest Offer Is The Best Offer & An “All Cash” Offer Trumps
All!
The best offer is not always the “highest” offer or
even the “all cash” offer. More often than we’d like, the highest offer or the “all
cash” offer falls through. Again, a good agent is able to offer suggestions
that will help “bulletproof” the transaction to dramatically increase the
chances of going to a closing. It’s important to remember that if that
initially accepted offer falls apart, then the seller’s property could now appear
tarnished or stigmatized to some degree to subsequent buyers. They may feel
that they no longer have to submit that “highest & best” offer. Maybe they
can now offer something less. They may ask themselves “What’s wrong with that
house? Why didn’t the first buyer want it?” The seller’s home may no longer be
the shiniest apple in the barrel – it may now have a little bruising on it!
There are contractual clauses I can suggest and other services that I can
provide to bulletproof that initial offer to help make it work and get us to
home plate – the act of sale!
MISCONCEPTION #5:
There Is No Problem
With Reducing The List Price Later On!
Studies by the National Association of Realtors
coupled with our own experience over the years has shown clearly that a seller
has the best chance of getting the highest offer on his home during the first
week or two of being on the market. After that the seller’s home begins to move
towards the bottom of the home apple barrel and the home isn’t quite as shiny
as it once was. In a balanced market or in a seller’s (i.e., strong) market the
market will speak to the seller fairly quickly in the form of inquiries,
showings and/or offers or lack of offers. In a buyer’s (i.e., soft) market it
may take a little longer. However, in any event the average days on the market
statistic for the seller’s neighborhood is a very strong barometer for how well
the seller’s home was positioned when it first came on the market. Pricing too
high initially and then later reducing the list price will in most cases result
in the property taking longer to sell with the seller getting a lower sale
price! The importance of pricing the property correctly at the beginning cannot
be overstated! This fact has been proven time and again! I will provide market
data information that will assist you in making an informed decision regarding
the initial list price you establish for your property – one that will help
ensure that you receive the most money for your home!
Terez B. Harris
Keller Williams Realty New Orleans
504 975 1033
TerezHarris@KW.com
TerezSellsNolaHomes.com
8601 Leake Ave., New Orleans, La 70118
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Terez B. Harris Terez Harris NOLA Realtor Group 504-297-2619 www.TerezHarris.com
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers and agents licensed in the state of Louisiana.Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
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