The Lies Used in Real Estate
When a prospective client asks for a price on a property, a real estate agent has the opportunity to impress the owner and obtain a listing by various methods.
The two most common lies that are used in the real estate industry involve the Appraisal price provided to potential clients.
One of the lies real estate agents are most known and disliked for – the intentional over-pricing of a homeowner’s potential selling price. The second of the two lies is one of omission. Both have the capacity to hurt a property seller financially and emotionally.
Why is an agent prone to using the two lies?
For some real estate agents, the only way to impress and obtain a listing, is to promise a higher price that they can get away with. Putting it in simple terms, they over value or omit the truth to get business.
As property owners, we want to believe. By over pricing the property, it allows people to believe that the property is worth more than they expect. Only to find out in a month or 2, the agent goes back to the client asking for the price to be dropped "Due to the market not being as active".
Property owners should be aware that when agents price a house for potential sale, it is a quote system. An agent’s opinion is just that: an opinion. As an agent,it is our job to report on the market, then provide a clear strategy on achieving the best price.
When providing a CMA (Comparative Market Analysis), it is essential for property owners to compare similar properties that have been sold, rather than properties currently listed for sale. Current listings can certainly be used as a guide but can not be guaranteed.
At JLC, WE DO NOT OVER EVALUATE any valuations for a prospective client. Our honest approach has served us well as we grow our market place in Toowoomba and Lockyer Valley.
For your Free appraisal, feel free to contact us.