Is Your Real Estate Agent Buying Your Listing?
You have decided to sell your home and you are going to interview several real estate agents about selling your home. Good real estate agents will meet with you and will have a listing presentation. The purpose of the listing presentation is to convince you they are the best real estate agent to sell your home for top dollar. Some real estate agents will also use a technique called buying the listing.
How Does Buying The Listing Work?
Here is how this technique works. One or more real estate agents will provide the seller with a really high recommended sales price. As a seller, you are really excited when you see the high price for your home. You sign a listing agreement with this real estate agent and your home is placed on the market.
Then you wait and wait and you do not get any offers. Your real estate agent calls you and recommends a price reduction on your home. You think about the price reduction and reluctantly agree to a price reduction. A month goes by and your real estate agent recommends another price reduction. Again, you reluctantly agree to a price reduction. Multiple price reductions may be required before your home sells. This is what it means to buy a real estate listing.
If your real estate agent bought the listing, they knew your home was over priced from the beginning. They had confidence they would buy the listing up front and then convince you to lower the price until the home sells. We don’t utilize this technique at Myers & Myers Real Estate. Our real estate agents provide you with our best estimate of what your home will sell for. We want to sell your home for the most money the market will bear, however we do not buy a real estate listing. We have lost several listings to agents willing to buy a real estate listing.
How To Avoid Real Estate Agents Buying Your Listing?
Here is the best technique to avoid real estate agents buying your listing. Make them prove their recommended sales price with recent sales of homes similar to your and in your neighborhood. Make the real estate agent show you recent sales. Don’t just trust them when the tell you about comps and the hot market. Ask the real estate agent to show me, not tell me!
Why Do Real Estate Agents Buy Listings?
The answer to this question is simple, it is profitable to buy listings. It is profitable even if they don’t sell your home. How can this be profitable you ask. The real estate agent will place a sign in your front yard and they will receive phone calls or texts about your home. The real estate agent will try to convince the call to work with them in buying a home. It does not matter if it is your home or not. The real estate agent may also hold open houses to generate new business leads. They can also send out marketing information to your neighbors and may generate business from them. In other words, every listing is an opportunity to generate new business.
Myers & Myers Real Estate is a full service real estate brokerage located in Albuquerque New Mexico. We help home buyers and home sellers in the Albuquerque metro achieve their real estate goals. Our website has every home for sale in the Southwest Multiple Listing Service. Check out homes for sale in Albuquerque, homes for sale in Rio Rancho, homes for sale in Corrales, homes for sale in East Mountains, homes for sale in Valencia County, and homes for sale in Los Lunas.