How Our Industry Operates: Why do agents take on overpriced listings?
Why is it that real estate agents will list your home, even when they know it's overpriced and will not sell? Here's the truth about how our industry operates. We are taught to take the listing no matter what, even if the agent believes that it is overpriced and will not sell, because we're told to do two things. One, is to build a relationship with you over time and slowly get that price down until it finally sells. Two, is we're taught that we can use your property as a place to play so we can put that billboard in your yard, the for sale sign to generate leads from other buyers, the open houses, so that all the people that end up coming to your property will see it. Even if they don't buy your home, we can still use it to find leads that will buy other properties. We literally are told you could do two or three sales just from having a listing.
If you're ever wondering why would a business person take a listing? And if they don't believe in the price, why will they still accept it? And why do agents do this? That's why. I'm sharing this with you because not everybody operates that way, but you do have to understand who you're doing business with. You have to ask the right questions and we have to take a look at the data. If there's absolutely no support for what's being proposed to be done, then at least raise an eyebrow and make sure that person has the track record. I want a more transparent industry. I want to expose the truth.
Letting the public know what's really going on and how real estate operates and what agents are taught is a really good way for you as a seller and consumer to make decisions around how you're going to do business and who you're going to do it with.