Many sellers fall for the oldest trick in the book: the appraisal trap. Some agents tells you a huge number to make you sign. Then, weeks, they blame the market. You lose you thousands. Knowing this tactic is the first step to protecting your property value.
This practice is common because it works on human greed. People want the highest price. Yet, the highest appraisal is rarely the highest sale price. The market determines the price, not the agent. Hiring an agent based solely on the highest quote is a recipe for a failed campaign.
Should you sign with the agent who promised the highest price, the clock starts ticking. You start with high hopes, but reality sets in quickly. Calls doesn't ring. Inspections are empty. They then starts the process of "conditioning" you to accept a lower price. It is painful, stressful, and entirely avoidable.
The Overquote Tactic Explained
Insiders call this "buying the listing." The agent knows the home is worth $600k, but tells you $700k to beat the honest agent down the road. Once you sign the contract, they have you locked in for 90 days. They realize you can't leave, so they just wait you out.
Relying on the fact that you have a deadline to sell. Later, desperation kicks in and you lower the price. The tragic irony is that you usually end up selling for less than the honest agent quoted you, because the property is now "stale" and shop-worn.
Launch Price Effects On Market Views
The price you set on day one is critical. People have access to data. Seeing a price that is way above comparable sales, they scroll past. Missing the chance to create emotional connection. Honest real estate agents tell you the truth upfront.
Once people scrolls past your ad, you don't just lose a view; you lose a bidder. The algorithm will stop showing your home if no one clicks on it. Internet silence is deadly. Smart pricing keeps the algorithm happy and the buyers clicking.
Why Listings Stall Kills Momentum
Once a listing stalls, it gets stigmatized. Everyone asks "what is wrong with it?" Although the house is perfect, the days on market tell a negative story. You end up selling for less than you would have if you priced it correctly early on.
Guessing the seller is difficult or the home has hidden structural issues. Submitting lowball offers because they smell blood in the water. Sellers have lost all negotiation leverage because you have no other interested parties to play them off against.
Money Lost Adds Up
Owners say "we can always come down later." That plan is flawed. As you wait for the price to drop, you are paying holding costs. Bank fees, council rates, water rates, and insurance continue to pile up. Sitting on a home for an extra 3 months can cost thousands in hard cash.
Also, if the market is falling, "testing the market" is dangerous. You could chase the market down, always staying 10% above where the buyers are. Once you catch up, the market value has dropped even further. Pros sell quickly to unlock their equity and move on.
Cost of Momentum Is Expensive
Energy is money. Buyer momentum drives competition. Lacking bids, there is no leverage. The trap kills this momentum. Use data driven real estate advice to set a price that attracts buyers.
Checking Agents Safety Checks
Look for the evidence. If an agent gives you a price, ask "show me the 3 sales that prove this." When they cannot show you 3 comparable homes that sold for that price recently, they are guessing. Refuse "gut feel" or "I have a buyer." Valuation is based on evidence.
Review their current listings. Check if they have many homes "under offer" or many homes sitting for 90+ days? The agent with lots of stale stock is likely an over-quoter. A pro with lots of "sold" stickers knows how to price correctly.
Honesty in Sales Vs Inflated Promises
We pride ourselves on telling the truth. Though it is not what you want to hear, honest advice saves you money. Showing you the hard data so you can make an educated move. Hire an agent who respects you enough to be real.
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