WE DO NOT DO THE TYPES OF PROMOTIONS DISCUSSED BELOW.
We do get asked about them from time to time. So here is a collection of frequently used real estate marketing messages we are busting!
“I will buy your home if it does not sell!”
No agent is going to “buy your house” if it does not sell for a price the agent cannot quickly later sell for a big profit. So this could be opening up a potential Conflict of Interest. Is the agent going to give you back anything they made above and beyond what they paid you for it after they bought it from you? Is the agent going to initially list your home at the correct market price, or above, or just enough to make sure they can resell if they have to buy it from you? Too many opportunities for conflict of interest exist, meaning possibly NOT totally working for a seller’s best interest, for sure!
“I get my sellers more for their homes than most other agents!”
We have actually followed up on this claim by a well-known agent. It is a stretch statement in our opinion. Most buyers use mortgage loans to finance home purchases. Mortgage lenders require a buyer’s loan be based on a home appraisal. The appraisal will look at what the current market price is on the home, then only allow the buyer a mortgage loan that is based on the appraised market value NOT 5% above or higher! You can see now how this is an interesting claim that may not be totally accurate. Since usually ONE agent is selling your home, how does that even compare to other agents selling other homes as all homes are not the same nor are all sellers home sale goals the same?
One way an agent can show this is to get offers and sales ABOVE the list price of your home by listing your home slightly below the market price. This also adds to quicker sales for sure. The agent-suggested list price might actually be lower than the true market price of your home! Doing this enough would eventually create an agent’s selling stats that show he or she is getting ABOVE their client’s list prices, maybe even 5% more than other agents’ stats. The other agents who price a little higher actually NET MORE $$$ for their sellers, even if they have to drop the price a little, or allow for some negotiation room in the List price. So yes, one way to have this stat is to have lower than normal listing prices and getting slightly higher offers. most sellers usually want the highest possible offer.
“I sell homes faster than other agents!”
If an agent under-priced the home, or got a prior listing AFTER the market had moved up the home value, or important negative details of the home status changed from the prior listing agent, this might occur. In one case we actually researched one of these claims and the home had tenants making it very difficult to show for the first agent. When placed back on the market by the “I sell it faster” agent, the home no longer had Tenants and was quickly sold. So yes, it was sold faster with an omission of details! They also “forgot” to mention they listed it $10K higher than the prior Agent, then eventually dropped it back to the last listed price of the prior agent when it did finally sell.
“I have 567 (the numbers always change) buyers lined up or waiting.”
Breaking this one down is pretty easy as this agent is hoping you don’t stop and think the claim through. WHY would you have that many “buyers” waiting to buy? All OUR buyers at Thomas Jambor Realty Solutions are actively searching and buying homes, not waiting for anything. We have NO Buyers just waiting. Waiting buyers implies a list of opportunity buyers or investors who are looking for a steal. So who does this agent actually represent? You want to set the most for your home from an agent that represents only your interests and not those of “waiting buyers.” (Please help us find a picture Vultures circling around a home to insert here.)
“If I don’t sell your home, you can fire me anytime!”
This is a great statement and certainly one that puts it on the line. When you list your home with an agent, you will usually be asked to sign a Listing Agreement that gives legal authorization to list your home along with the terms of the listing which also outlines the details of your agent’s commission. Though this is a contractual agreement specifically for a number of months, we do not hold any of our sellers “hostage” to a listing agreement at Thomas Jambor Realty Solutions.
OpenDoor, OfferPad, & other discount online agencies offering an easy sale.
These innovative ways to sell your home can be good if you need to get out quickly and not worry too much on how much money you actually net on your sale. The fun will start when you pay attention to the FEES in their written “Offer”, or Purchase Contract. Giving someone a market price for their home sounds good on the surface (it sure does in the ads), but when you total up all the fees, you might be really surprised how much less money you will have in your pocket than a traditional agent sale!
Zillow Instant Offers (currently in test markets)
According to industry reports, Zillow will market to select homeowners an “Instant Offer” that Zillow has identified the Home Owner as possibly interested in Selling. Once a homeowner responds, Zillow will send that information to select “Investors” who they have partnered up with for this program and possibly a local agent. This gives the homeowner a few offers that will be similar to an OpenDoor or OfferPad type situation (see above). These Zillow Instant Offers “appear in an email alongside a Comparative Market Analysis (CMA) from a Zillow Agent partner/advertiser. Since the CMA is likely to be higher than the investor bids, some sellers are tempted to list with the featured agent, leading to leads for that Agent.” Of course this is another creative way for Zillow to direct possible Sellers to Agents who will pay Zillow lots of $$$ to be featured as one of the “go to” agents on the “Instant Offer.”