It's happening more and more often as the transition continues from the hot sellers' market of the last year to a less-fevered environment that's likely the reality we'll see over the few months.
Some sellers haven't come to terms yet with the fact homes are tending to stay on the market longer and prices are not escalating as fast as the summer. So they're more susceptible to the agents' pleas.
Some homes are still attracting multiple offers and selling for above list, but not as often.
Though some agents figures are inflated due to the agents' notorious practice of knowingly understating the list price so they can claim they got more than the owner was asking.
This market slowdown leaves these unprepared sellers vulnerable to the pressure and scare tactics that are the agents' stock and trade. As soon as you become a ComFree client, you can count on being inundated by agents' flyer and phone appeals. They'll always parrot several recurring themes:
- The most hollow claim of all, "I can net you so much more I'll cover my own commission"
- "only the board's listing service can give you the exposure you need"
- "I have people who want to buy your home now"
Whatever the actual line, the subtext is always the same: you are in over your head and only an agent can get you out of this, but only after you've signed a listing agreement. Most of you don't fall prey, but the agents only really expect to shake the resolve of a few of you.
The moral: The market will always tell you what your home is worth and you cannot argue with the market. So it's unwise to put yourself in a bind by signing an agent's listing agreement.
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Let's look at a recent example. A couple listed their nice two-storey on Woodside Cir. Airdrie in July for $356,000 with ComFree. After two months as a private sale, and enduring countless aproaches from agents, they signed with an agent the beginning of September.
But by mid October, one and a half months later, their home still hasn't sold.
However, their asking price is down to $344,900. So, assuming 7% + 3% commission plus GST, the couple is really saying they will settle for $328,900.
After starting with ComFree at $356,000, they will now, through an agent, be walking away with less than $328,900.
It has probably occurred to them by now that had they remained a private sale, they could now be asking $347,000 and still have $9,000 to play with. Their home would be priced more competitively and they would stand a chance of netting more than they can through an agent, which is all that matters in the end. But they are tied up with the agent for another month before they can take control again.
The house ended up selling with an agent for $325,000, with the couple losing over $31,000.
We will undoubtedly see more of this in the near future until sellers figure out that losing control over your sale and paying a commission makes your home sale less competitive and more problematic.
The Woodside Cir. Airdrie couple understands that now. ComFree will welcome them back.
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