There are important things to consider when choosing the right Realtor to list your home and more importantly, you must make sure you avoid choosing the wrong Realtor to list your property as this may come with plenty of downside to you as a homeowner, whether it’s financially or emotionally, or both.
This blog breaks down what the potential risks can arise when choosing an agent that’s exactly qualified to list your home.
Here are 6 reasons why an agent who provides you an unrealistic list price can hurt your bottom line as a homeowner:
When you set an exorbitantly high price for your home, you immediately limit the pool of potential buyers who can afford it. Many buyers filter their online searches based on their budget, so if your property exceeds their upper limit, it won't even appear in their search results. This means you miss out on a significant portion of your target audience, resulting in fewer showings and ultimately fewer offers.
An overpriced home typically spends a longer time on the market. The longer your property sits unsold, the more likely buyers are to wonder what's wrong with it. This perception can deter potential buyers and make it even more challenging to sell your home for a reasonable price down the line.
Ironically, setting an initial high price can lead to a lower final sale price. As your home lingers on the market without takers, you may be forced to reduce the price repeatedly. These price reductions can create a perception that something is wrong with your property, which can make buyers hesitant, and they may come in with lower offers than they otherwise would have if you had priced it reasonably from the beginning.
Even if a buyer is willing to pay your asking price, the deal might still fall through due to appraisal issues. Lenders require a property's appraised value to align with the loan amount, and if the appraisal falls short of your inflated asking price, the buyer may be unable to secure financing. This can lead to contract cancellations and further delays in the selling process.
Overpricing your home can result in unnecessary expenses. You'll have to spend more on marketing, staging, and maintaining the property while it's on the market for an extended period. Additionally, real estate agents and other professionals involved in the transaction may spend extra time and resources on a listing that's priced too high, which can affect your overall profitability.
Setting an unrealistic price for your home can send a signal that you are not serious about selling. It can also make buyers and real estate agents hesitant to work with you, as they may perceive you as unreasonable or unwilling to negotiate.
Secondly, you would want to make sure you hire a real estate agent that does not cut corners when it comes to the marketing of your home. In terms of getting top dollar for your listing, besides the list price, a strong first impression of your property online is equally as important. You do not want to be the listing in your neighbourhood or price segment which sticks out like a sore thumb due to your Realtor trying to save money or not taking the honour of listing your home seriously, leading to a “lazy marketing strategy”.
Here are 5 potential outcomes that may arise due to a poor marketing strategy of your listing:
One of the most critical aspects of marketing your home is reaching the widest audience possible. The MLS is a great start, but it should be the foundation of your marketing strategy, not the entire strategy itself. If you fail to invest in additional marketing efforts, your property may go unnoticed by potential buyers. Poor marketing can lead to limited exposure, which means fewer interested buyers and potentially lower offers.
When it comes to real estate, first impressions are everything. In today's digital age, the first impression often happens online. High-quality photos and detailed, compelling descriptions are essential to pique the interest of potential buyers. If your MLS listing lacks appealing visuals and a well-written description, you may not attract as many potential buyers as you could. A poor first impression can lead to lower offers or a longer time on the market.
The real estate market is highly competitive. When you put your property on the market, you're not just competing against other sellers; you're also competing for the attention of buyers who have countless options to choose from. If your MLS listing isn't marketed effectively, your property may be overshadowed by more attractive listings. This can result in your property languishing on the market, potentially leading to price reductions or other concessions that can impact your profit.
In today's digital age, it's crucial to harness the power of online and social media marketing. Poor marketing neglects these powerful tools, which can help you reach a broader and more targeted audience. Effective online marketing, including promoting your listing on various real estate websites and social media platforms, can generate more interest and increase the chances of selling your property quickly and at a higher price.
Working with a professional real estate agent who specializes in marketing is essential. Agents have the experience, resources, and network to effectively market your MLS listing. They can help you create a marketing plan that goes beyond simply listing your property and includes strategies to showcase your home's unique features and appeal to potential buyers.
And lastly, even though this is often overlooked, the number one complaint of sellers after the transaction takes place is their Realtor did not communicate with their clients appropriately. This can often lead to a frustrated, negative experience with their agent, making the seller decide to never use them again or even decline to recommend them to friends and family.
Here, we break down why communication matters when Homeowners decide which Realtor they choose when listing their home:
Navigating the real estate market can be stressful. A great realtor should act as a buffer, shielding you from much of this stress. Effective communication is a key tool in their arsenal. When your realtor communicates clearly and regularly, you are better informed, which reduces anxiety and uncertainty. You'll know what to expect at each stage of the process and can plan accordingly.
In the fast-paced world of real estate, timing is often everything. From submitting offers to counteroffers and closing dates, being on the same page with your realtor is essential. A realtor who communicates proactively can ensure you don't miss out on opportunities or get caught off guard by sudden changes in the market.
Every real estate transaction is unique. Your needs and preferences may differ from those of other buyers or sellers. Effective communication allows your realtor to understand your specific requirements and provide personalized guidance. They can help you find the perfect home or attract the right buyers for your property.
Trust is the foundation of a successful real estate partnership. Effective communication promotes transparency. When your realtor is open and honest about the market conditions, the progress of your transaction, and any potential challenges, you can trust their advice and expertise. This trust is essential for making confident decisions throughout the process.
Common Complaint: Lack of Communication
Sadly, many sellers have experienced the frustration of working with real estate agents who don't communicate effectively. Some of the common complaints include:
How to Choose a Realtor Who Communicates Effectively
Some common mistakes homeowners make is they don’t properly interview their Realtor, and most of the time, they may just choose a family member or friend because they “feel obligated to”. For most homeowners, their house is their most valuable asset, and such be treated as such.
Here are 4 important interview questions you should ask the Realtor you decide to invite to your home to discuss the sale of your property:
When you interview potential realtors, one of the first questions to ask is about their experience and expertise in the real estate market. This can help you gauge their knowledge and track record in selling homes, especially in your area. Consider asking:
Realtors with a wealth of experience often have a deep understanding of local market trends, pricing strategies, and negotiation skills, which can benefit you in your home sale.
Marketing is a key component of selling your home. A successful realtor should have a well-thought-out marketing plan to ensure your property gets maximum exposure. Some questions to ask about their marketing strategy include:
The realtor should be able to show you a clear plan for showcasing your home to potential buyers, whether through professional photography, virtual tours, or open houses.
Setting the right listing price is crucial for a successful home sale. You'll want a realtor who has a solid grasp of market dynamics and can help you price your home competitively. Ask the following questions:
A knowledgeable realtor will use data and their experience to help you arrive at a price that attracts buyers while ensuring you get a fair value for your property.
Effective communication is essential throughout the home-selling process. You'll want a realtor who keeps you informed and addresses your concerns promptly. Inquire about their communication style and availability:
A realtor who is accessible and responsive can make the selling process smoother and less stressful for you.
At the end of the day, choosing just “any real estate agent” can be detrimental to the sale of your home and can lead to poor results and an overall unpleasant experience. Realtors come with a variety of level of experience, work ethic, knowledge and some come with exceptional professionalism and some equally lack it and homeowners should take this into deep consideration when determining who the right Realtor is for their needs, and a Realtor should feel honoured they have the privilege of listing your home and should treat it as such.
We hope you found this information valuable and we hope you do take these topics into consideration during your selection process for the right agent.
If you have been considering selling your home and would like to hear how the We Sell Windsor Team can assist you in making your move a seamless one, then you can fill out the form below or call/text us direct at 519-300-7093 and we’d be happy to help you and answer any additional questions you may have.