Are you afraid your listing agent might leave you in the dark? Real estate combines the most personal aspect of your life, your home, with the world of business. So naturally, some delicate topics may come up as you work with your listing agent to get your home sold.
But at Sequoia Real Estate, we value open and honest communication, as do most of our clients. So we’re going to tell you five things your listing agent doesn’t want to tell you.
1. “You Should Interview Me Before Signing with Me”
As real estate agents, we’re always excited to take your listing and help you get your house sold so you can move on to the next chapter of your life. But you might want to interview us before signing the listing agreement.
Ask about our strategy for marketing your home. Ask for details on how we arrived at our recommended listing price. And ask about how we will keep you informed through the selling process. Make sure you’re comfortable with your listing agent before signing the listing agreement.
2. “You Might Not Recoup Your Renovation Costs”
We hate to break it to you, but you might not recoup your renovation costs when you sell your home. In fact, as building materials and labor have gotten more expensive, more renovation projects are producing negative returns.
If a renovation will help you get more enjoyment out of your home while you own it, go for it! Just don’t expect to recover the full cost of your investment when it comes time to sell.
3. “Your Home Doesn’t Appeal to Today’s Buyers”
It’s uncomfortable to tell a seller that their home is too dated to appeal to today’s buyers. You love your home, and it’s comfortable for you. You don’t want to hear that other people won’t feel the same way about it.
So some agents will stay silent. Unfortunately for everyone, this silence can result in a lower sale price.
Try not to take it personally if your listing agent recommends making a few changes around the house. Your agent just wants to make the home appeal to a wide audience of buyers in order to maximize your sale price.
4. “I Won’t Take a Lower Commission Rate”
Technically, all real estate commission percentages are negotiable. But your listing agent is probably hoping you won’t try to negotiate because that can lead to an awkward conversation in which the agent has to defend their commission rate.
The reality is that much of the commission is actually reimbursing your listing agent for out-of-pocket marketing expenses they incur to sell the house. And remember, your listing agent will be negotiating the price and terms of the sale on your behalf. Do you want an agent who can’t even negotiate for their own commission rate?
Your listing agent doesn’t want to say it, but they probably won’t take a lower commission rate.
5. “Your Home Isn’t Worth as Much as You Think”
Have you heard of the Endowment Effect? The Endowment Effect is an emotional bias that causes people to over-value things they own. This plays a big part in homeowners’ estimation of their homes value. Your home is special to you because you’ve made so many memories there, so you naturally assign a higher value to the home than someone else would.
And listing agents hate to have to tell you that buyers don’t think your house is worth as much as you think it is. Unfortunately, it’s the buyers in the market that dictate price. You can list at any price you want, but your home will only sell at the price a buyer is willing to pay.
A good listing agent knows that this difficult conversation needs to happen if you’re overvaluing your home. But that doesn’t mean we enjoy telling you that your home isn’t worth as much as you think.
When you’re ready to sell your home, hire a listing agent who’s going to be open and honest with you … even about the things your listing agent doesn’t want to tell you.