Countless vendors fall for the oldest trick in the book: the appraisal trap. Some agents tells you a huge number to get you to sign. Weeks later, they blame the market. Wasting you thousands. Knowing this tactic is the first step to protecting your property value.
Buying listings is common because it works on human greed. Everyone want the highest price. Yet, the highest appraisal is rarely the highest sale price. The market determines the price, not the agent. Picking an agent based solely on the highest quote is a recipe for a failed campaign.
Once you sign with the agent who promised the highest price, the clock starts ticking. You start with high hopes, but reality sets in quickly. Enquiries doesn't ring. Showings are empty. The agent then starts the process of "conditioning" you to accept a lower price. The process is painful, stressful, and entirely avoidable.
Agent Lies Explained
Insiders call this "buying the listing." Agents knows the home is worth $600k, but tells you $700k to beat the honest agent down the road. Once you sign the contract, they have you locked in for 90 days. Knowing you can't leave, so they just wait you out.
They bank on the fact that you have a deadline to sell. Eventually, desperation kicks in and you lower the price. The sad irony is that you usually end up selling for less than the honest agent quoted you, because the property is now "stale" and shop-worn.
Starting Price Risks Buyer Perception
Your number you set on day one is critical. The market has access to data. Seeing a price that is way above comparable sales, they move on. You lose the chance to create emotional connection. Honest real estate agents tell you the truth upfront.
If buyers scrolls past your ad, you don't just lose a view; you lose a bidder. Websites will stop showing your home if no one clicks on it. Internet silence is deadly. Smart pricing keeps the algorithm happy and the buyers clicking.
The Stalling Cycle With No Interest
When a listing stalls, it gets stigmatized. Everyone asks "what is wrong with it?" Even when the house is perfect, the days on market tell a negative story. You finish selling for less than you would have if you priced it correctly early on.
Guessing the seller is difficult or the home has hidden structural issues. Submitting lowball offers because they smell blood in the water. You lose lost all negotiation leverage because you have no other interested parties to play them off against.
The Financial Cost of "Testing the Market" Is Real
Many sellers say "we can always come down later." This logic is flawed. While you wait for the price to drop, you are paying holding costs. Mortgage interest, council rates, water rates, and insurance continue to pile up. Holding a home for an extra 3 months can cost thousands in hard cash.
Plus, if the market is falling, "testing the market" is dangerous. You might chase the market down, always staying 10% above where the buyers are. By the time you catch up, the market value has dropped even further. Smart sellers sell quickly to unlock their equity and move on.
Cost of Momentum Is Expensive
The buzz is money. Buyer momentum drives competition. No tension, there is no leverage. The trap kills this momentum. Use data driven real estate advice to set a price that draws offers.
Checking Agents To Protect Yourself
Request the evidence. When an agent gives you a price, ask "show me the 3 sales that prove this." If they cannot show you 3 comparable homes that sold for that price recently, they are guessing. Ignore "gut feel" or "I have a buyer." Pricing is based on evidence.
Review their current listings. Do they have many homes "under offer" or many homes sitting for 90+ days? An agent with lots of stale stock is likely an over-quoter. A rep with lots of "sold" stickers knows how to price correctly.
Honesty in Sales Over Optimism
Priding ourselves on telling the truth. Even if it is not what you want to hear, honest advice saves you money. Displaying you the hard data so you can make an good call. Select an agent who respects you enough to be real.
Strategic property selling Northern Adelaide