Last week we covered why pricing your home to reflect it’s value in the current market, is the key strategy for getting the most money in your bank account in the sale of your home. This week we will cover the common strategies that real estate agents will employ when pricing your home, just to get the listing.

  • Maybe you have decided to put your home on the market…
  • Maybe you have begun researching agents to sell your home…
  • Maybe you have checked their reviews and you are ready to start interviewing…

This is where it can become confusing. Agents will propose different strategies when pricing your home. Here are two common pricing strategies that agents use and how you can circumnavigate these to ensure that you get the most money in your bank account at the end of the sale:Pricing your home Hilton Parkes

1.Bait pricing

Some agents may propose that the best strategy is to use a low price in order to bait buyers into making an offer. These agents then lean on the sure competition created to work the offers up. There are three main problems with this approach:

– If you go to market with a price range, lower price or a price by negotiation strategy, this tells buyers that you are willing to accept less.

– A lower bait price will attract the wrong buyers. The lowest price the buyers see will become the highest price they want to pay. Have you ever offered more than the asking price for a car, groceries, or any product for that matter?

– Successfully working up offers can only be successfully achieved after extensive training in negotiation. The problem is, more often than not, an agent employing such tactics as bait pricing is unlikely to be a skilled negotiator.

NOTE: Neil Jenman, Australian Real Estate Consumer Advocate, believes it’s important that you never disclose (not even to your agent), the lowest price that you are willing to accept. If you employ the wrong agent this figure can quickly become the highest price you will get.

2. Overpricing your property to get the listing

Another strategy employed by agents with poor negotiation skills is to overinflate the sum when pricing your home just to buy your business. If you suspect that an agent is attempting to buy your business with a high price estimate, insist they give you their estimate in writing. Also, insist that they charge you nothing if they sell for less than the price they estimated. This will identify the agents who are enticing you with false price promises.

Home Sellers Protection Guarantee

Just as you sign your agent’s listing agreement, it is important that you ask your agent to sign your Home Seller Protection Guarantee. This guarantee has been described as a “lie detector” test for agents. It is available through our contact us page to all home sellers at no charge and with no obligation. Despite what some agents may say, you can use it with any agent in any area.Pricing your home Hilton Parkes

This Guarantee has huge support from consumers, lawyers and consumer advocates and prevents any agent from hurting you. If an agent does not want to sign it, do not hire the agent, no matter what you are told.

To receive a copy of the Real Estate Consumer Protection Guarantee contact us and we will provide this for you.

Often the agent who quotes a high when pricing your property to buy your business also quotes a low fee. If this is the case, the agent is likely demonstrating an inability to negotiate. If they are willing to give away their own money (low fee) then what will they do with your money, when negotiating with buyers at the end of the sale?

Unfortunately, there are some agents, who reveal confidential information about sellers, such as a personal reason for selling

– Illness, divorce, financial commitments. The agent may tell buyers about your reason. This weakens your position.

It’s imperative that you find the right agent who will advocate for you fairly, as this can be the difference between tens of thousands of dollars at the end of the sale.

Neil Jenman, Australian Real Estate Consumer Advocate provides resources for sellers, to ensure that they receive the most money in their bank account.

We are the only agency in our area that is endorsed by Neil Jenman. In fact Neil said “If my family was selling a home in your area, we would choose HiltonParkes Real Estate.”

– Neil Jenman (Australian Real Estate Consumer Advocate).

If you would like advice on the sale of your home, feel free to contact us to book a free, confidential appointment.