Why sellers choose the wrong realtor?

Many homeowners have listed their property with an agent but have struggled to sell it. They are now seeking a second opinion since they are concerned as to why their home did not sell. It's usually because one of three things happened: 

  1. House was overpriced
  2. House was badly marketed
  3. House didn't show well

When the situation was examined more deeply, it was clear that the sellers were not properly educated about comparable homes, or that the agent lacked local expertise, or that the broker lacked procedures for advertising and presenting the house. According to considerable research, 70% of people only interview one realtor for the job of listing agent. This made me wonder how people nowadays locate realtors? The ultimate effect isn't particularly appealing. Here's a summary of all the reasons why sellers choose the wrong realtor.

Selecting a realtor based on the highest list price offered

This is a frequent strategy used by realtors to obtain the listing. It's so prevalent, in fact, that it has its own real estate term: "purchasing the listing." A realtor will show up, tell you some insane amount that sounds fantastic but isn't based on anything, and you will be so thrilled about the prospect of making that much money that you will sell your property with them. Here's a summary of the following 6 months:

  • It is now on the market
  • No interest from buyers/No offers received
  • The realtor presses you to lower the price - so you lower the price
  • It is still on the market - no interest
  • More tormenting from the realtor
  • Another price drop
  • Three months later, it sells for what it was worth at the start

WHY? Because the longer a property is on the market, the more likely something is wrong with it. It is the market that determines the value of a home, not the realtor. That is why it is critical to examine the market, do the statistics, and select a realtor based on marketing and negotiation. Those are the only two elements that will boost the value of a home over what the market indicates.

Based on commission

When it comes to putting more money in your pocket, the negotiation process during offers is a significant one. Real estate is entirely commission-based, and if we can't even negotiate on our own behalf, how can you expect us to stand firm and be a shark when it comes to negotiating on your behalf? That will not happen. Discount realtors just lack the necessary abilities, which is why they are so cheap. That is their sole value proposition. The realtors that are out there working for you, grinding for you, and eventually getting you the greatest profit are sometimes the most costly.

Don't make the mistake of saving money up front only to lose money afterwards.

They are a friend or family member

We have nothing against you picking a realtor who is a friend or family member - I have clients who are also friends and family members! Be certain that your friend or family member is the ideal realtor for you. Are they familiar with your neighbourhood, or are they an out-of-town? Is their web marketing presence strong? Simply ask the fundamental questions, and make sure you do your homework and make the best option for yourself. If it turns out that they weren't the ideal choice, be honest with them; they're your friends/family, and they'll understand.

You want to give them a chance because they're a new agent

Everyone deserves a chance, especially if they are new to the industry. The majority of realtors fail during the first three years of their careers. It's a challenging industry that isn't for everyone. The primary concern with rookie agents is that they aren't always confident in the contracts, and as a result, we see a lot of agents leave out conditions or specifications that should be included. The primary concern in this area is safety; thus, if this is the road you want to take, make sure you have a new agent that is a go-getter, has a mentor, and knows what they're doing.

So, as a seller, what should you look for in a real estate agent?
  • Marketing and online presence - With 95% of buyers finding their property online, you need a realtor that is tech-savvy and up to date to ensure your home receives maximum exposure. 
  • Negotiation - Do they have a thorough understanding of the contracts? Do they have previous sales or negotiating experience? Can they explain the numbers effectively? Do they have good presenting skills? 
  • Experience - How well do they know your area? Do they have any references from previous clients? What did they sell?

Do your research first, and never feel obligated to choose an realtor immediately. Consider your options. It is quicker, faster, and more profitable to hire the right realtor the first time. If you're looking for a realtor to help you sell your home and want to learn more about how I've helped my sellers achieve their real estate goals, please contact me at 778-233-8366 or divamangal@royallpeage.ca.

Comments:
No comments

Post Your Comment:

The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.