If you're like many people, you pick the Realtor that says they can get the most for your house. This is an agent who seems willing to listen to your input and work with you. Thgis is an agent that cares about putting the most money in your pocket. This is an agent that is willing to start out at your price and if you need to drop the price later, you can do that easily, right? After all, everybody else does it!
The truth is that you may have just met an agent engaging in a questionable sales practice called "buying a listing". He bought the listing by suggesting you might be able to get a higher sales price than the other agents quoted. Most likely, he is quite doubtful that your home will actually sell at that price. The intention is to eventually get you to lower the price.
Why do agents buy the listings? There are basically 2 reasons. A well meaning and hard working agent can feel pressure from a homeowner who has an inflated perception of his homes worth. On the other hand, there are some agents who engage in this sales practice routinely.
Whichever the case, if you start out too high a price on your home, you may have just added to your stress level. If you and your agent have overpriced, fewer agents will show your home. After all, they are Realtors, and it is their job to know the local market. If your home is too overpriced, why waste their time showing it? Their time is better spent showing homes that re priced realistically. Later, when you drop your price, your house is "old news".
