Some listing agents in Conway Arkansas sell their listing services by focusing, in conversations and advertisements, on how fast they sell homes and how many they sell. They practice what I refer to as “volume-selling”. They’ve made their mark by selling LOTS of homes, and by selling those homes quickly. Now, on the surface this sounds great. I mean, who wouldn’t want to list with someone who can sell a home quickly? Right? And, if a listing agent sells homes quickly and has a track record of selling LOTS of homes, well, it stands to reason that they should be the one you list with. Right? Maybe not. As is the case with so many other things in life, the proverbial “devil” is in the details.
What They Won’t Tell You
As I’ve already mentioned, in their marketing and advertising “volume-selling” listing agents focus on how fast they can sell a home. Now, they may never actually say “I can sell your home in 3 days!”, but they’ll be sure to send you a postcard in the mail to tell you they sold your neighbor’s home in 3 days. The implication is that they can do the same for you. Understand, this is classic advertising using the power of suggestion. They’re betting that most folks will assume: “Well, if they sold theirs in 3 days, they can sell mine in 3 days.” In a lot of cases, this kind of advertising pays off for these listing agents. Last summer, my next door neighbor listed their home with a “volume selling” listing agent who actually did sell their home in 3 days. For the next month, while their home was under contract, there was a sign in their front yard displaying these words: “SOLD IN 3 DAYS!” “YOUR HOME COULD BE NEXT!” Apparently, that sign worked. A few weeks later that same brokerage listed the home next door. But, it didn’t sell in 3 days, or 30 days. Actually, it took 74 days to sell. And, when it finally did sell, the sale price was $23,000 below the homeowner’s original price. You see, the underlying fact that “volume selling” listing agents won’t tell you is that they need to sell homes fast, because their personal costs to do business are usually pretty steep. Most work for brokerages that have a traditional, bloated cost structure which ends up being absorbed, to some degree, in the form of brokerage fees paid by the agents who work there. Basically, these listing agents pay in order to work. Some fees are monthly, recurring fees; while others are paid on a per-transaction basis. Because of this widespread, traditional brokerage business model, many listing agents simply need to sell homes quickly. They really don’t have time to sit around and wait with their client for a top-dollar offer. They’ve got bills to pay. But, they’re not out there telling folks that message though. Instead, they position themselves as the listing agents who can sell your home fast. So, the real question is: How? How do they do it?
How Do “Volume-Selling” Listing Agents Sell Homes So Fast?
The secret–these listing agents list homes for an average or below average price. All they have to do is convince a homeowner that he/she will be wasting their time if they list at a price over ___ amount. If they can get the homeowner on board with the idea of listing for less, then these listing agents know the home will sell fast. In a nutshell, it’s just that simple. Really. Now, obviously there are occasions where a homeowner actually needs to sell fast. Perhaps a new job out of state has them needing to relocate in 2 months. Or, perhaps they’ve already got a contract on another home that is contingent on them selling their current home first (sidenote: that’s getting the ‘cart before the horse’). Or perhaps it’s some other life event. The point is, there are situations when it’s good to have a listing agent sell a home fast. In my experience though, most homeowners plan a big move far enough in advance to allow them to take the time necessary to sell at a truly desirable price. In other words, most of the homeowners in Conway Arkansas that I’ve talked with, prefer to avoid the “fire-sale” approach. Inevitably, when you list for a low price, your home will sell fast. But that causes you to lose money you could have otherwise gotten out of your home if you simply would have waited for a top-dollar offer. The problem I have with the “volume selling” listing agent’s approach, is that it prioritizes their need to sell homes quickly over the homeowner’s need to get the most possible money out of the home.
Inside the Mind of a “Volume-Selling” Listing Agent
Just last summer I had a “volume selling” listing agent comment about the price on a home I had listed. That agent’s exact words were “homes don’t sell for over $100 per square foot in that neighborhood”. When they said that, I was dumbfounded…literally. I honestly didn’t know what to say. It was then that I began to realize that “volume selling” listing agents actually see the market differently than I do. You see, that listing agent’s perception of the prices in that neighborhood was wholly influenced by their understanding of what price they would have to list a home for in that neighborhood–in order to sell it quickly. And, for that listing agent, that meant prices in that neighborhood didn’t go over $100 per square foot. But, that simply wasn’t influencing my perception when I prepared a comparative market analysis for that homeowner’s home. Since Geraldson Realty is an efficient brokerage, I simply don’t have that unnecessary pressure to sell homes fast–that is, unless the homeowner needs me to sell their home fast. In most cases, I’m able to develop a strategic plan for homeowners to sell their home for top-dollar. Then, I’m able to execute that plan without pressuring the homeowner to lower their price every 30 days. I’ve found that homeowners appreciate this. So…about that home I had listed. It was in that neighborhood where “homes don’t sell for over $100 per square foot”. Well, they do now. Three months later that home sold for over $105 per square foot. Was it a quick sale? No. But patience on the homeowner’s part netted them a chunk of extra cash. And, whether they realized it then or not, when that home sold for $105 per square foot, the surrounding neighbors’ home values went up.
What Kind of Listing Agent Do You Want?
When it comes time to sell, studies show that the listing agent you’ll think to call first is probably someone you know, or the one who has sent you postcards, or the one whose signs or billboards you’ve seen most. No matter which listing agent you end up calling though, it might be a good idea to ask them what’s so great about the listing services they provide. If their answer has anything to do with how fast they can sell your home or how many homes they sell, just know–you’re probably dealing with a “volume-selling” listing agent. If selling fast is your goal, you might be talking to the right listing agent. But, if a top-dollar sale is your goal, you might want to look elsewhere.