VOSTNER-BELL ELITE HOME MARKETING
GOOD For Your Wallet
Jason Bell, Tess Vostner-Bell & Associates www.vostnerbell.com
(403) 830-5800 & (403) 689-1199
MaxWell Canyon Creek (403) 278-8899 www.maxwellrealty.ca
3205 380 Canyon Meadows Drive SE
Calgary, Alberta T2J 7C3
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Gimmicks and Tricks to Avoid
#1 'Bait and Hook' or 'Buying the Listing'
'Baiting' or 'Buying a Listing' is what we call it when a real estate agent is willing to tell a homeowner that they feel the home should be listed higher than it is really worth. The agent either agrees with a homeowner who believes her/his home is worth more than it actually is, or the agent claims the home is worth an inflated price so the owner will get excited and hire the dishonest agent. With their lies, they “buy the listing”.
Just the fact that an agent is willing to misrepresent what a home is worth to get a listing shows a lack of ethics and shows they don’t really care about the client. What really happens with an overpriced listing?
- It sits on the market longer
- Agents and buyers assume there is something wrong with the home the longer it sits
- Price reduction after price reduction is needed
- The seller now looks desperate
- The home ends up selling below market value
While that high listing price might sound great at first, you need to be realistic and look at the facts. Comparably sized homes with similar features that have sold in similar locations will help show your home's current value.
A good example from David Rew, a real estate agent turned whistle-blower:
David valued one house at $750,000 but lost the sale to another agent who cited its worth at over a million dollars. David said three agents later, the house sold for $660,000, close to $400,000 less than the questionable million dollar valuation and $90,000 less then his estimate of market value at the time. (source http://mylacrescenta.com/2006/06/dirty-real-estate-tricks.html)
So how do you get top dollar for your home?
- Market the home aggressively to get buyers into the home
- Have the home clean and staged so buyers can see themselves living in the home
- Make sure to have the home priced correctly so buyers don’t leave saying “I love the house, but not at that price.”
- Understand that the more flexible you are on things like the closing date (i.e. possession), the firmer you can be on price
When interviewing agents, make sure that they aren’t trying to “buy the listing”. Use an agent that is honest and upfront with you from the moment you first contact them.
#2 The Truth About 'Your Home Sold in 90 Days Or We Buy It' Programs
You hear the radio ads, read the mass mail and you see the billboards and bus benches. The claims sound so wonderful, especially in a saturated Buyer's Market.
But what is the catch?
Sample requirements for these programs:
- The most shocking (and most downplayed): the guaranteed sales price (the price the agent promises to pay you for your home should it not sell in 90 days) is typically 80% of the initial list price
- You only get the guarantee if you list at the agent's recommended price, which is aggressively low to help it sell within the 90 day period
- You must buy your next home only from this agent
- The home you purchase must be higher priced than the home you are currently selling (eliminates sellers that are downsizing)
- You must buy your next home from that agent's current listing inventory (meaning instead of having thousands of homes to choose from that are listed on the MLS, you only have a handful of homes to choose from)
- The home you are selling cannot be a 'starter' home (because a future seller would need to buy your home, and there would be no sellers with homes priced lower than yours)
- The home you are selling cannot be priced higher than the top end of the average home price in the area (because there wouldn't be enough people who could qualify to buy that home, plus, the agent wouldn't have a home listed higher than yours to fulfill your requirement for a higher priced purchase)
#3 Why WeLists and For Sale By Owners often fail - The Real Story
Reason #1:
Most homebuyers do not want to negotiate a "private" deal with the seller. Since the services of a Realtor are generally free for a homebuyer, most buyers use a Realtor and the MLS. This is why most buyers are not interested in FSBO's and WeLists.
- Only 10% of FSBOs sell their home successfully within three months
- 84% of people who try to sell their property on their own or through an Internet based service eventually choose the services of a real estate agent to sell their listing (source: NAR)
- 80% of all For Sale By Owner buyers and sellers surveyed indicated they would hire a real estate professional for their next transaction to eliminate problems experienced (source: Inman News)
Reason #2:
Homeowners see a real estate associate/realtor put a sign in the front yard, they see ads in the newspaper, they see the Realtor holding open houses and they see the online listing of their home.
So when attempting to sell by owner, homeowners copy what the Realtor does. They put a sign in the yard, hold an open house, run an ad in the paper, and put their house online on some site that very few people ever visit, much less buyers from the local area.
And they wait. And wait.
What do real estate associates do differently? Motivated Realtors do things that homeowners DON’T see and don’t even think about. Firstly, they put your home on the MLS and MLX service. Secondly, they market a home aggressively and they target the large group of buyers who don't want to deal with private sellers. Lastly, they promote your home to all the other Realtors in Calgary who have willing buyers. This results in a large amount of exposure and interest in your home, which leads to it selling for top dollar.
Reason #3:
Buyers that respond to the classifieds and WeLists are usually investors or people looking for a deal. Some are unruly and will haggle the sale price down tens of thousands of dollars.
Using a Realtor to sell your home opens you up to a much greater market of homebuyers that use realtors and real estate companies, rather than the small number of individuals who want to try a private deal by themselves.
