Real Estate News with Terri Taydus, GRI, CNA

Don't Be Fooled by an Inflated List Price!

June 30th, 2013 12:36 PM by Taydus Taydus

There are several good Realtors in Boulder / Boulder County.  Some have been around for a long time and are well known (almost famous!) within the area.  When it comes to listing your home, some Realtors will tell you almost anything to get the listing…including inflating the list price above what is realistic for the market.  Seller’s eyes light up when a Listing Agent tells them that they can get $10,000, $20,000, $30,000 or more for their home than all of the other Listing Agents they have interviewed.

No matter how you slice it or dice it, if a Realtor is inflating the list price in order ot secure your listing, IT’S A LIE!

 

We all work in the same market.  A good Realtor will show you the comps of recently sold homes, and homes that are currently on the market to justify a suggested list price.  This is where you need to set aside what you want to believe and look at the facts.

  • Are the comps that the potential Listing Agent is showing you good comps for your home?
  • Are they similar to your home in size, condition, and location?
  • Are the comps current (within 3 to 6 months)?

     

Try to look at your home objectively and see your home through a potential buyer’s eyes. That hot pink bathroom with the green tub and grey carpet may make you happy every time you walk through the door…but will it have that same effect on a potential buyer? Remember, this is about pleasing the masses not the few – as it is to your benefit for your home to be as appealing as possible to as many potential buyers as possible. This is the time to really look at the comps being presented to you and see if they are realistic. Is your home in its original 1970’s condition, while the comps in front of you have been remodeled and / or updated? If the comps seem “too good to be true”, and the agent is not making adjustments for the condition of your home, you may be in the presence of a Realtor that is trying to inflate the list price of your home to get you to list with them.

Or maybe the comps ARE realistic…but if the Realtor you are meeting with is telling you that he / she “can get much more for your home” – perhaps it’s time to thank them for their time, and show them the door! Be realistic when looking at the comps and do not be intimidated to ask questions if something does not seem right.

Sales histories are available for almost every property listed in the MLS. If you look closely, the sales history can paint a picture regarding a specific property and the agent that listed it. Sales histories are quick and easy for any Realtor who has access to the MLS to print and provide for you. When looking at a property’s sales history: 

  • Be sure to have the Listing Agent explain the CDOM (Combined Days On Market). Don’t be fooled by the DOM (Days On Market), as this number could be completely different from the actual number of days a home has been on the market. Some Listing Agents, will pull a listing off of the MLS then re-list it to start the clock ticking over again, and make the DOM appear to be less than they actually are. The CDOM will show the TOTAL number of days a home has been on the market.
  • Have the agent explain any “Withdrawn” or “Expired” statuses.
  •  Also, notice how many times the price had to be dropped before the home actually sold. This could be a big indicator that the Listing Agent for that particular home inflated the list price to get the listing knowing that he / she could just lower the price later when the home didn’t sell at the higher price.
  • Take note of the Listing Agent’s name on any suspect properties.

Remember, when it comes to listing your home an getting it sold it is not about quantity so much as it is about quality. An agent may have several listings, but if their listings are sitting on the market for an inordinate amount of time because they are overpriced (or if the price had to be lowered multiple times before the home actually sold), an agent with fewer listings that have sold quickly because they were priced appropriately for the market may be your best choice.  After all, you are not putting your home on the market just for the sake of listing it – you are putting your home on the market to sell it!

Posted by Taydus Taydus on June 30th, 2013 12:36 PM

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