Tuesday, October 7, 2014 / by Ernie Arrizza
As part of my job, I must interview for jobs. I must explain to people my process and how I work and the things I will do to market and sell their house. Somewhere in there I hear, well the last guy said that we could get this, and do that. Making statements and saying that you will definitely get a certain dollar figure or sell your house by a certain date is a lot of horse crap.
A few things that I’ve learned about my industry is that Realtors and even now, For Sale by Owner sites and appraisers can give you a gage at something but nothing is written in stone. So many factors can affect your sale for one better or worse. Something could happen in the marketplace that could dramatically change what the last house sold for and your house will sell for now. It can go either way. You could be on the benefitting end of a change, or you could lose.
A good example of this is you put your house up for sale. The last comparable house sold for $650000, it is an identical model. Your house has some interest and the day after you put your house up for sale, a bigger newer house which has been renovated with a finished basement and better finishes goes on the market around the corner from you and is on the market for $25000 more than yours. They end up selling their house for only ten thousand dollars more than yours after negotiation, and it sells firm in one day. Your house is still on the market. The next day another house goes on the market and it goes on the market for $15000 less than you’re selling yours for. Their lot is slightly bigger than yours but the house is almost identical. Here’s my point, if an agent or company selling your house told you that your house would sell at $650000 or in that range, just to get the rights to sell your house, they are already lying to you. If the case study above is any indication, your house could sell for less. FYI the case study above almost occurs a lot.
Common Promises from Realtors and For Sale by owner companies that are Horse SH#T!
1. You Will Get XXX amount if you list with me: Nobody can tell you what your house is worth, only the market will determine that, and the market changes with every buyer. It go could in both directions.
2. I have buyers for your property: If you have a buyers for your property then you don’t need to list your house, just simply make the deal happen, or negotiate a price.
3. We will sell your house by this date: Nobody is psychic, while comparables are a very good gage for determining days on market, buyers might not like something that your house has. There may be something about your house they don’t like, compared to the other houses. You may have a stigma attached to your house that the other didn’t.
4. If your house doesn’t sell in 30 days I will buy it: The agent will want to buy your house at a reduced price, if you were going to sell your house at a reduced rate, then list it at that price to begin with.
5. Your house doesn’t need any marketing and I can just post it on MLS: Even in the hottest market, your company or Agent should do the most marketing to drive up traffic on your house. While yes you can sell your house with a simple post, the name of the game is getting the most for your house, not doing the least amount of work to get there. While yes you might have saved $5000 on commission by listing your house yourself, but you lost $300000 in agents and buyers bidding on the house with some common marketing tools and practice.
The best thing to do is interview 3 agents and companies, yes interview a for sale by owner company, to see what it will be like to sell your own house, and after interviewing them you will understand a bit more what’s going on, but you should find an agent that will not sugar coat anything and will work in both your best interests, not just telling you a bunch of stuff to get the listing on their website.