Sold Over Asking is A Lie
How agents make it seem like they are amazing.
The happiest thing agents love doing is showing off that they sold a property over the asking price.
When it is not the hottest real estate market where homes sell for over asking, do they screen to the mountaintop that they sold a place significantly UNDER asking? Of course not.
But, it is not them that paid over asking, it was a buyer. Add to that, they purposely priced it BELOW the value. Why? Two simple reasons.
- Make people think that something great in a hot market is underpriced. They think people will come, fall in love, overbid, start a frenzy and get a ridiculous sum of money. But, 100 times out of 100, the people who can’t afford it get disappointed and upset to go along with the (possible) fool that overpaid because of the emotional maneuvering.
- More possible buyers means more people seeing it at the plethora of open houses who could possibly become one of their buyers! Agents forget to tell you that they use your house to get buyers. (Side note, I do not do opens, just private showings for qualified people, but if I do get a buyer, I have it in my contract to give the seller something for the use of their home to attract buyers).
What they don’t understand it that the “real” buyers will still pay what they want to. Asking prices are stupid. If it were up to me, there wouldn’t be any because in the end, it’s about what a buyer wants to pay.
Let’s remind these agents that is against the Code of Ethics as a Realtor(R) to not price something properly. In a bad or “normal” market, agents routinely lie about what a property is worth only to have people not look at it because it is priced too high. I think they think that some billionaire will just buy it for whatever to put someone in there for some reason. No, that does not happen.
If you are a seller, don’t let anyone do this. Price it right so you get the qualified buyers only showing up. You’ll still get an amazing price because the BUYER wants to pay that much.