When selling a house, how do I know my agent will price the home in my best interest? If the agent prices below market value, they can claim to other clients they sell homes faster compared to other agents and they have a higher Close Price/List Price ratio compared to other agents as well. They also won't need to spend as much time showing the home if it sells faster. Sure they may lose extra commission by not maximizing the sales price, but there are other incentives for them to list below market value as well.
How do I know my agent is looking out for my best interest?
- Thread starter Mazoup
- Start date
nosuchreality
Well-known member
If you have that concern, then you need to find a new agent.
Ultimately, the final yea or nay to a purchase offer is yours to make.
Ultimately, the final yea or nay to a purchase offer is yours to make.
sgip
Well-known member
This advice has served me well over time: "Do not believe a word of a salesperson, no matter if it's insurance, cars, solar, mortgage, or furniture for that matter". Before committing to a major purchase, speak with recent customers. You'll find the right person to work with within 2-3 phone calls to past clients.
Once you are committed, thereafter do what the Agent says, even if it's counterintuitive to you. That's the "how and why" your Agent got the great recommendations. Your interests will without doubt be served because you've vetted the Agent as true and faithful, knowing their success is based on what outcome will matched your expressed needs.
Put the horse in front of the cart. IMHO you won't know if your better interest is being served without careful screening first.
Once you are committed, thereafter do what the Agent says, even if it's counterintuitive to you. That's the "how and why" your Agent got the great recommendations. Your interests will without doubt be served because you've vetted the Agent as true and faithful, knowing their success is based on what outcome will matched your expressed needs.
Put the horse in front of the cart. IMHO you won't know if your better interest is being served without careful screening first.
MountainsToSea
New member
They aren't looking out for your best interest. They are looking out for their own best interest. Look out for your own best interest by doing your homework, research and consulting with people you trust. With the vast amount of information you have on the web you should be able to price your home right and be able to pick the best offer. Good luck.
potsticker
Active member
A few things that come to mind here...
1. Why are you concerned? Has your agent said or done something that leads you to question his/her intention?
2. You're essentially interviewing someone for a job. Ask your agent probing questions. Lay out some hypothetical scenarios and see how he/she reacts and responds.
3. Do your own homework. With Zillow and Redfin, it's not hard to see what has sold around you recently and get a gauge of the going rate. You could call the agents that sold those homes and survey/interview them as well.
4. Is this agent investing their own time and resources? Are they paying for professional photos, staging, etc? Is their commission structure variable based on how much they sell the property for?
At the end of the day, I strongly believe the truth is in the data. What are the comps saying and what's the current market climate? For example, today, a model match to your home that closed in January may very well be trading for 5-10% more simply due to market conditions and supply/demand.
1. Why are you concerned? Has your agent said or done something that leads you to question his/her intention?
2. You're essentially interviewing someone for a job. Ask your agent probing questions. Lay out some hypothetical scenarios and see how he/she reacts and responds.
3. Do your own homework. With Zillow and Redfin, it's not hard to see what has sold around you recently and get a gauge of the going rate. You could call the agents that sold those homes and survey/interview them as well.
4. Is this agent investing their own time and resources? Are they paying for professional photos, staging, etc? Is their commission structure variable based on how much they sell the property for?
At the end of the day, I strongly believe the truth is in the data. What are the comps saying and what's the current market climate? For example, today, a model match to your home that closed in January may very well be trading for 5-10% more simply due to market conditions and supply/demand.
usctrojancpa
Well-known member
There are a few agents like myself that use very unique "pay-for-performance" variable listing commission models that better align the interest of an agent and seller. Set a somewhat aggressive realistic sales price target between the seller and agent, that is the basis for the commission and if the agent goes above it progressively extra commission is paid and if they go below it progressively less commission is paid. It's not just about having a high List-to-Close price % but it's also important to see how the homes sales compare to the comps (i.e. is the agent making new record comp closes in the neighborhood). The listing price does not figure into the determination of the commission but will determine how quickly the home may go into escrow (this will depend on discussions with the seller in terms of their tolerance for constantly showing the home).
Setting a low listing price in a sellers market will always result in a bidding war where there may be emotional buyers. A good agent will use multiple offer situations to extract the maximum sales price and most favorable terms (i.e. free rent back, no appraisal contingency, an "as-is" sale, short contingency periods, etc) for the seller, and sometimes significantly over closed comps because there is an emotional buyer that bids against themselves. Price is #1 but having good terms matter as well. At the end of the day, your agent should be your partner and real estate consultant and looking out for your best interest. A good agent knows that real money is made on the relationship and not on the transaction so find an agent that focuses on that....client first, everything else second.
Setting a low listing price in a sellers market will always result in a bidding war where there may be emotional buyers. A good agent will use multiple offer situations to extract the maximum sales price and most favorable terms (i.e. free rent back, no appraisal contingency, an "as-is" sale, short contingency periods, etc) for the seller, and sometimes significantly over closed comps because there is an emotional buyer that bids against themselves. Price is #1 but having good terms matter as well. At the end of the day, your agent should be your partner and real estate consultant and looking out for your best interest. A good agent knows that real money is made on the relationship and not on the transaction so find an agent that focuses on that....client first, everything else second.