Realtors Can Offer Much More Than A Listing Price

Going With the Highest Bidder...

I understand why sellers would want to list their home an agent, because that agent happens to be the one who provides the highest recommended list price. After all, who doesn't want to maximize their investments? Going with the "highest bidder" is not sound selling strategy, though.

A year and a half ago, I went on a listing appointment at an older home on Lady's Island, one of Beaufort's great residential areas.

I will dispense with all the details, and just say I told this gentleman that $229,000 would be an optimistic asking price for his house. I based my recommendation on the competition at the time, and recent sales. Well, he listed with another agent, for $279,000, which was way too high. Predictably, the home languished on the market, this seller went through two agents, and the price eventually was reduced to $239,000, before the seller took the home off the market.

I was researching some sales figures recently, and I saw that this sellers house sold. He had re-listed at $199,000, with a third agent, and the results were predictable. The home went under contract quickly, and just closed a few weeks ago, for $177,000, $100,000 less than his ill-advised asking price almost two years before. How much time, stress, and money did this seller cost himself by making his listing decision on who was the "highest bidder?"

There is an abject lesson to be learned here, my home-selling friends.

Realtors do not add any value to your home. The market price is what it is. Listing your home with the "highest bidder," is a bad idea in any market, but especially in this market. At the end of the day, this "highest bidder" strategy will backfire, and more times than not, this seller will simply spend months or years of futilely chasing the market downward.

When you put your home on the market, don't just pay attention to the recommended list price. Pay close attention to, and scrutinize, the rationale and information the agent provides you. That is a recipe for making a sound decision, and selling your home as quickly as possible.

As always, don't hesitate to let us know if we can be of assistance, and have a great day.