Friday, July 04, 2008

Some just want that commission check.

In the world of residential real estate, you get all kinds of agents. While many are looking after the best interests of their clients, some just want to get a commission check.

For the family that wants to list their home on MLS and recruit the services of a licensed agent, they might pick up the yellow pages and call a few real estate offices. Appointments are made to allow several agents the opportunity to provide a Comparative Market Analysis (CMA). These CMAs are estimates as to the current value of the seller's home.

Less than scrupulous agents will frequently inflate their estimate of the seller's home in order to secure the listing and improve their personal chances of getting a commission check. While more qualified agents and their CMAs may have been overlooked, the seller will naturally be tempted to go with the higher asking price. No doubt, the house will be listed at a higher price and sit on the market for months. Ultimately, the price drops to a level supported by market conditions - and more in line with the majority of CMAs.

Just what exactly happens during the time the seller's home is on the market? Prospective buyers might stop by out of curiosity to see why this particular house is priced higher than homes in the neighborhood, but they have no real intention to buy. When the price is higher than everything of comparable size and quality, agents won't even include it in their client tours. When the price eventually falls, people immediately conclude that something must be wrong with the house. Clearly, selecting an intelligent agent will result in the best conditions for a quick and profitable sale.

It is never a good idea to select an agent because they are telling you want they think you want to hear.

Of course, situations like these exist in other industries that involve professional services. Following the trail of invoices frequently exposes the real motives for providing those services.


Anonymous said...

Some just want to sit in a district surplus chair that is not even theirs, and finish out their time in the district doing absolutely nothing until august 29th.

Anonymous said...

Are you saying something about the district's lawyers?