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Selling Agent Due Dilegence - Two Different Ideas - Help Please!

We purchased our home in NJ about 10 years ago at the height of the market...wrong time to purchase, but we did not know everything would come crashing down. We're now strongly considering listing our home in about a month or two to take advantage of a relocation opportunity that my husband has through his employer. We're both sick and tired of NJ in many ways and really want to try something different. After all, you only live once! Technically, our house isn't exactly underwater, we're basically "even" in terms of value, but we have made numerous updates including new kitchen and baths.


We need to be able to get the absolute most we can for this house (to put solid downpayment on another), so we're meeting with a few different selling agents to determine who would be the best person for the job. So far, we've met with two agents. Agent #1 we met with over the summer - that agent has not yet seen our master bathroom update, which was in progress during our initial meeting. At that time, Agent #1 indicated they would list our home at $479K with the assumption that the market would remain fairly stable (it has). We were pretty happy that with number because we had been concerned it could be a lot lower than that. Since we met with Agent #1, our Zillow value has increased about $40K from where it was - not that Zillow is accurate! ;-) Agent #1 left us with a positive impression - they understood our concerns and genuinely want us to be able to get the most possible.


Several months later, with our master bathroom fully completed, we decided to meet with Agent #2 for due diligence. Before signing with Agent #1, we wanted a "second opinion." We were pretty bummed when Agent #2 said they would list us at only $450K as "strategy." The philosophy of Agent #2? There are buyers in the $400K-$450K range, and then there are buyers in the $450K-$500K range. Listing at $450K would attract both groups because it is right in the middle. I fully understand Agent #2's marketing tactic, but I feel we're undercut right from the very start by listing lower. Sure, maybe we could have a bidding war that would get us to $470K or so, but it's no guarantee. My concern with Agent #2's strategy is that we'd land right at $450K or possibly even lower - not anywhere near where we want to be. Agent #2 seemed to be more business-minded. They seemed more interested in simply getting a fast sale for themselves as opposed to getting the highest price for their seller.


We're thinking about obtaining a third opinion to see what their thoughts are. I'm not sure if that would be overkill, but I'm curious to see what a third agent would say since the first two agents seem to be so far apart.


Ideally, we are hoping for a sale price of $500K, but we realize that may be a reach. As of now, we're leaning towards Agent #1. We have full confidence in our home because there are not many in this area that are truly move-in ready. Many competing homes are extremely outdated, even ones in our general price range. Our home speaks for itself. We'd rather start a little "high" with hope that someone would bite right away, and if we need to, we can lower the price a bit and hopefully land in a very comfortable spot.


I'd be very grateful to hear some opinions on this! Thanks!

Comments (9)

  • 8 years ago

    You say that Agent #1 has not even seen the completed project? Have her come back and also get a third agent. Agent #2 might ultimately be correct, but you need more opinions.

  • 8 years ago

    Do you want to actually sell and move? Or do you want to play how many zillion days on the market can you go before you lose the job opportunity?

    Never list too high. That kills the mojo from the start. In a sellers market, it’s much better to list low and have multiple offers. Being overpriced is the kiss of death.

  • 8 years ago

    One other thought. It doesn't matter what you put into the house and what you paid for it. You'll only get what the market will bear.

    Additionally definitely get the third opinion. The truth is probably between the 3. Never price it high because when you do it will sit longer and you'll wind up having to drop your price. Sometimes you wind up having to drop it below what you would have gotten if you priced it right from the beginning.

    Why?

    Because when a house has been on the market a while (and a while is determined by how quickly other houses in your area are selling), people begin to think there's something "wrong" with it or that it's way over priced even if it's not.

    Make sure you price it right from the start. If the price is a bit low, it will generate a bidding war. If it's fairly priced it will sell close to asking. If it's priced too high, chances are you won't get offers or if you do, it will be a lowball offer.

  • 8 years ago
    last modified: 8 years ago

    I agree. Price it right. Strange things happen. You don't want them happening to you.

  • 8 years ago

    Where you want to be or where you need to be on the final sales price has zero impact on what a ready, willing and able buyer will pay for your house. Remember that in pricing.

    Find a third agent for another opinion, but do NOT tell them where you want or need to be. I'd skip agent #2.

  • 8 years ago

    I also agree -get a 3rd opinion.

    And that whole "price it below" <insert any magic number range here> to appeal to the most buyers. Everyone has a limit. Every Realtor will push a limit with the expectation that 1) they can negotiate below the listing price and 2) the buyers likely have some wiggle room. And now - with the internet - it's EASY to refine your search to include a slightly higher price point (unlike how it used to be where the Realtor would have to pull paper copies off the MLS!)

  • 8 years ago

    Have your agents presented written "sold" comps with analysis, written marketing plan and list of references? If not, look for very active agents who will do their homework. Don't overprice to give yourself wiggle room. Price it at fair market value. In most areas, there are very few active buyers between Thanksgiving and New Year's Day.

  • 8 years ago

    This is not a great time to put a house on the market. You will have less foot traffic. Having said that, anyone who looks at your home is very interested or needs to buy. I've sold homes this time of year in the North. There will be less competition.

    You need to interview more agents. Unless the first agent has stayed in touch with you, I wouldn't bother with them again. There is some merit to what the second agent said in that they seem to be aware of price points, human behavior marketing. So many agents aren't.

    The house is only worth what someone is willing to pay. What you have spent on it does not factor into a buyer's equation. Rationalize what you have spent on it as rent. You had to live somewhere.

    Interview two more agents. Get them to provide a comparative sales market analysis in your area. Read them carefully. Check their listings on line. What do you think of their listings? Are the pictures attractive? Does the written information sell the property? Does everything seem organized? How many homes have they listed and sold in the last three months? Just a few of the questions you need to have answered.

    When you sign a listing agreement, try to make the period of listing as short as possible. Make sure you have their marketing plan in writing. Absolutely no listing longer than six months. ALL commissions are negotiable.

    Good luck to you.