buying a home

There are many different pricing strategies that can be employed to try and get top dollar for a home. One that has become popular is grossly under pricing a property to try and encourage multiple offers. This is one of the weakest strategies that an agent can employ.

It happens mainly for 2 reasons:

1. Lack of market knowledge and fear of overpricing and

2. Self-serving reasons. The agent wants to be able to tell other sellers that they just got $100,000 over asking price. It also makes him look like a hero (which he is not)

Here is an actual email thread that elaborates on why I am not a fan of this tactic.

Hi Vlad,

What's up with the house across the street. My view – BAD AGENT, stupid pricing!
 

Indeed, there are different strategies and approaches to selling a home.

Pick the right one, and you will get the top dollar, sell quickly and avoid hassles and headaches.

Pick the wrong strategy and you have made a very wrong turn: a painful process of sitting on the market, having people tramping through your home day and night, day after day, developing a stigma of your home as being not desirable, and eventually selling for less that what it is worth.

And of course the agent is the one who helps the client chart that path (with his lead and recommendations on setting the asking price) and the eventual outcome: pain or pleasure is the final result.

They came in at 699k…then increased to 750k…then took it off the market…then relisted again at 750….then took it off again… And it is still sitting unsold…

Who needs that pain? You would go out of your mind with stress like that.

There is no need or reason for that.

Why complicate life when one doesn’t need to. Agents should be paid for making life less stressful and the process simpler and less painful, not the other way around

Tagged as: buying a home, Choosing a realtor, real estate market, Riverdale, Toronto Real Estate, Vlad Bregman