I didn’t think I could be saying this so early on in the real estate market recovery, but be careful. With available inventory at it’s lowest in 6 years, and prices BEGININNING to rise, some of the market makers are sharpening their teeth. So if you are thinking of selling your home here are some signs to watch out for:
- Realtors who say that giving them an “exclusive” listing to market your home is a good strategy. Be very careful and ask alot of questions if your agent says this. While it can make the process less taxing for the seller with less people trekking through their home, well…it means less people will see your home. Less traffic isn’t exactly in the best interest of the seller, but it can mean more time for the selling agent to get their own buyers in and try to get the listings and the sale.
- An agent who offers to make their commission “variable.” A variable commission structe is legal, but must be properly sited in the listing details. A variable structred commission means that if the listing Realtor brings their own buyer to the table , they will reduce their commission by an agreed amount since they are gmaking money on both sides of the deal. This is also not really in a seller’s best interest since the agent is likley to keep other agent’s buyers at bay in order to secure their own.
- A Realtor who says that prices are way up and can get you at least 20% more than you could have gotten a year or so ago. It’s true that prices are climbing–but this is just the beginning. Pricing your home for sale is still one of the most strategic decisions you make in marketing your home. It is still better to be cautious in pricing it and encourage a multiple bid situation that may take the sale price above the list price than it is to over price it and chance it languishing on the market and ulltimately selling for less than had it been the right price at the outset.
Let me know if you hear any of these gimmicks coming from people you may know…