Q: We are interviewing agents to list our home. We have interviewed 4 agents, and all have indicated a price right around $1.2 Million. However, one of them is suggesting we can get $1.45 Million for our home. Should we list with her? Kathy
A: Kathy, that is a great question! There are many criteria from which to evaluate agents when deciding who to list your home with. Experience, market knowledge, track record, production, marketing expertise, process management, etc. These are all important considerations. However, in my opinion their recommendation on price should NOT be your main consideration.
As a consumer, you should ask this agent how they arrived at this conclusion. In general, the comparable sales information is readily available, even to the consumer on various web sites. This is the data that BUYERS will use to determine a fair offer price. Unless she has some data that is not public, or some iron clad logic that is defendable, she may not understand the market, or simply be telling you what you want to hear to win the listing. And let’s face it… everyone loves to hear that their home is worth even more than they think. Be skeptical if an agent suggests a price well over what the data indicates. Trust your judgement and ask questions.
Listing your home for a price well above the indicated market value can do more harm than good, as it can dampen demand for your home and discourage buyers from making an offer. It can lead to extended days on market and your home becoming “stale”, which often results in a lower sales price than what you could have gotten if you had priced it correctly from the beginning. At the end of the day, what you think your home is worth and what your agent thinks your home is worth has zero impact on the actual value of your home. It is the market (i.e., the buyers) who ultimately determine what your home is worth. You are right to be skeptical.