You ever hear a real estate agent tell a client that they want to have their home “priced to sell”?
What does that mean? One thing that it definitely means is that a seller will never know that they were paid the maximum amount of money for your home. In fact, a seller will never, ever be able to know that they were ever paid the maximum amount of money for their home if they sell it with an Agent/Realtor. How so? When a seller “lists” a home for sale with an Agent/Realtor they have already lost before the game gets started. A seller when putting a price on the home has already proclaimed to the world “here is what I’m willing to settle for” no more and I definitely will have to settle for less. Why? Because when a person selling their home puts a price on the property and permits contingencies to be negotiated then they have lost at controlling the sale. Why should the seller tell the world what they are willing to settle for by putting a price on something that could be worth more? I don’t know why. I suppose out of ignorance to other ways of selling where people compete to buy their home.
It has been well documented that appraised values are a sham. In fact the entire system of attempting to use comparable properties in an area is based upon pure speculation at best.
So how does a person get top dollar for their home where they don’t have contingencies (fix this, repair that & upgrade the next thing) and be able to have buyers compete to own their home and realize the maximum value? The auction method. Only the auction method can force the market to bear upon a property that makes only serious and qualified buyers step up and compete to buy a home where top dollar is paid. What makes the auction method even better is how that because it is a time definite sale. Only auctions let sellers actually know when their home will be sold. It is not like the list wait and continuously reduce method of selling with Agents/Realtors who never know if and never know when a property will be sold. What is the effect upon the buyers? The fear of loss is what motivates the serious buyer. They know that if they want the home, they must be qualified and ready to buy on a date certain and that they risk losing at auction to another buyer who will pay more.
Where else can you have buyers compete where sellers win like this? You are right, nowhere other than at auction. So why do people settle for less all the time? Ignorance is the answer. Ignorance is defined as a lack of knowledge, education, or awareness. So this is why we share what we do to help roll back the frontiers of ignorance and help make sellers informed that there is a better way of getting top dollar for their home.
Today many agents want to “set a price to sell” a home for a person. Why?