HIGHEST MARKET VALUE – Many listing agents will tell you your property has a higher market value than it actually does, just to get the listing. They will then proceed to ask for price reductions to get the price down to where they should have listed in the first place (or lower). This approach, however, tends to backfire as the property listing will become ‘stale’ and potential buyers will ignore the listing, regardless of the reduction, until it is well under market value.
QUICK SALE STATISTICS – Some agents will boast that they consistently sell for 99% (or more) of listing price and that they will sell your home quickly. Although this can happen occasionally to any agent, if an agent is consistently doing this, it can be a sign that that agent underprices your property; which means you are selling for less than market value.
THE ‘ADVERTISING EVERYWHERE’ AGENT – There are many large agents in Calgary that you see or hear advertising everywhere including billboards, buses, radio ads, paid celebrity endorsements, grocery stores etc.; and I admit they can be impressive. As a consumer, however, you will most likely be passed down to a team member with considerably less real estate experience and knowledge, especially if you are a potential buyer. Most consumers will never even meet the agent they see on these ads at any time during their real estate transaction.
FRIEND/FAMILY & INEXPERIENCED AGENTS – “Giving a Chance’ to someone who is new to the industry, or simply inexperienced in real estate marketing, can cost you $10,000’s when selling a home. Selling a home for MAXIMUM VALUE requires extensive marketing knowledge and systems that new/inexperienced agents simply don’t know how to use or don’t have the financial resources to utilize.
LOWER COMMISSIONS – Choosing an agent based on their commission rate is one of the worst ways to choose an agent. There are many examples as to why, but they all boil down to this… Properly marketing a property to receive the highest offers is expensive; and most lower-commission agents are spending considerably less on marketing. A $2,000 savings on commission could easily cost you $20,000+, and cause you to be on the market longer, because you will have considerably fewer potential buyers viewing your property.
GUARANTEED SALES – A Guaranteed Sale is offered by a Brokerage (not an individual agent) and often contains several Terms and Conditions that are not favorable to the consumer. These Terms and Conditions are designed to remove all risk from the Brokerage involved, and can greatly reduce the amount a seller receives for their property (sometimes under 80% of market value). In most instances, the Guaranteed Sale offer does not apply to properties such as condos, townhouses and acreages, and also includes a maximum market value, usually around $450,000-$600,000.