Real Estate lie's debunked....
Over our many years in the Real Estate Industry we have heard many different lines used to mislead the real estate consumer. These range from minor white lies or stretching of the truth to outright Bullshit!
What we are trying to do with this page is to educate the real estate consumer on how to recognise these lines for what they are.
"I have a buyer for your property"
This line is often followed by "just sign here to let me bring them through....". The thing is, every single agent really will have a buyer for your home at a price. The trap is that you are being asked to sign paperwork with an agent that you were not necessarily going to go with. You are also locked in to pay their fee which is often glossed over at the time.
Think about this point, if they really do have the perfect buyer ready to buy now, is that buyer only going to buy a property through that agent? No, of course not.
More likely the buyer doesn't care which agent they buy through, the key for them is finding the right home. Once they know your property is for sale they will enquire through whichever agent has the property listed. Choose the best agent for you, not the one that brings out the "I have a buyer" line.
"Look at me, I am the best agent there is, look at my sales history blah blah blah..."
You have probably heard the famous line that "there are three kinds of lies: lies, damned lies and statistics". - Arthur James Balfour, 1st Earl of Balfour, as quoted in the Manchester Guardian, 29th June 1892.
Agents that love to see their name up in lights will often skew their sales statistics for their own ego, often counting their teams sales as their own etc
Even if an agent really has sold the most in an area doesn't mean they have done a good job, maybe they are simply the best at convincing their sellers to take low offers?? - Thank about that.
Hire an agent you feel you can trust first and foremost, if they happen to also sell the most properties that is just a bonus.
Advertising your greatest asset with Asking Price Ranges, ie $340,000 to $390,000.
The home seller is promised they could sell as high as $390,000! The buyers though, in their eye's only see the lower end of the price range, $340,000. $340,000 now has become your default asking price.
"We are highly trained negotiators, our agency will get you more in your pocket"
It is true that 9 out of 10 times a great negotiator will get a higher price from a buyer. But how much more? And how much is the agent charging? Beware of agents that charge hefty commissions based on their "expert negotiation skills" alone. Be sure to ask your prospective agent how they will get you more money than the competition, and factor in their fee for what they do. Also beware of the use of statistics in proving their ability, as we know statistics can be made to say anything the presenter wants.
Often these agents are only interested in negotiating a high fee for themselves.
There are plenty of great Real Estate negotiators that won't charge the earth.
"You get what you pay for"....
Do you get what you pay for though? The Real estate Industry is fraught with unhappy clients, left with a bad taste in their mouths and huge holes in their pockets. Do you know anyone who has had a bad experience with an expensive Real Estate agency, did they get what they paid for?
"You need to be with a big Name Franchise agency"...
Why? Last time I visited the mainland I don't recall seeing any Tasmanian properties in their windows and believe me I looked in Real Estate windows, doesn't everyone? Actually come to think of it, I have never seen any mainland properties in our local real estate windows here either. Isn't that weird? I thought you needed to be with a large Franchise agency, don't they all show each others properties?
Quality versus Quantity.....
Many agencies claim to be boutique to focus more on their clients needs. Well, "Quantity has a Quality all of it's own", just make sure you are listed with a highly visible agency, where the buyers can easily find your property.
Agents buying listings....
The biggest liar gets the job.... Often agents "buy" a listing by telling the sellers what the seller wants to hear and that their home is worth more than it actually is. Agents do not control the value of your home they merely report on it using current market conditions and sales. Don't sign with an agent who just "tells" you a price. Make sure the agent proves their reasoning for their valuation on your home using hard written evidence from a reputable source. Agents cannot achieve a higher price which has been inflated in order to "buy" the listing.
Marketing and Advertising....
Marketing does work! If you had a great product but kept it a secret, how many do you think you would sell? But, a great product well marketed.... Now that's a different story! Advertising is a component of Marketing and expensive advertising in the wrong area's, well, that's just a waste of money. When it comes to selling your greatest asset, ask an expert if you should keep it a secret?
"You need to be with a local agent, with a large window..."
Every agency has a large window these day's, it's called the Internet. More to the point, your property can be seen from that large "window" from the comfort of any armchair, in any living room, anywhere in the world. Not just when your standing in front of the "local agents" window!
"Why don't you sell the house yourself... you'll save a fortune"...
Only a fool would climb Mount Everest alone, don't be a fool! Hire a great Sherpa guide to show you the way. Everest holds too many examples of people who "saved a fortune". What will your sale cost you?