PRICE PLUNGES AS AUCTION LOOMS
8th February 2006
PRICE PLUNGES AS AUCTION LOOMS
Another seller caught in the Quote Trap.
I have an urgent problem and I hope you can help me.
My home is going to auction this week and I believe the agent has been low balling me. He quoted that my property was worth 600k to 650k, but is now telling me the buyers only think my property is worth low 500k.
What should I do? I don't have to sell but I would like to, I have done my homework and need at least 620k. I am afraid that if my property stays on the market for to long it will go stale, it was previously listed for sale with another agent.
Please help - URGENT.
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Ah yes, the agent quotes $650,000 but those nasty buyers are only quoting $500,000.
There is a saying that goes, "Fool me once, shame on you; fool me twice, shame on me."
The agent fooled you with a price quote to get you to sign up. You are caught in the Quote Trap. The agent is now planning to fool you into selling for whatever price you are offered at the auction.
Liars should not be rewarded by the payment of a hefty commission. If I were you (which could never happen because I would never sell my real estate at auction), I would go-ahead with the auction (on the off-chance that a buyer at the right price may be there) but I would insist that the property NOT be sold unless it was within the range quoted by the agent.
Yes, it seems certain that the property will be passed in at the auction. In which case, you can then say to the agent, "You misled me in order to persuade me to choose your agency. You are now fired and all payments, if any, that you feel you are due are not going to be paid to you."
If the agents threatens you (as many do when they are dismissed) and says that you have to pay advertising costs or that you are not allowed to sell in any other manner without paying a hefty commission, then you may remind the agent that it is a serious offence to use deception in order to obtain a financial advantage.
If you are going to sell for a lower price, do so with an agent who tells you the truth from the start, not one who uses a lie to catch you and then the truth to sink you.
Although it is disappointing, your property may well be worth a lot less than the agent quoted you, which means that if you want the price you "need", it may be best to withdraw from sale and maybe wait a few years.
A fall in prices is not always as bad as it first seems. It's not just your property that falls in price, it's everyone's, which means that you sell for less but you'll also buy for less.
And, finally, NEVER sign-up with any agent again unless you get a price-quote-guarantee.
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This story is taken from Stories page of the Jenman website.
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Articles
INSTANT REACTIONTo put a property on the market takes effort. There is the effort in selecting the agent and marketing
strategy, the effort to prepare and present the property and then the effort to keep the presentation A1 throughout the campaign.
CONDITIONINGThe tricks used to drive your price down.
THE TWO RESERVE PRICESAt an auction, the property cannot be sold until the bidding reaches the sellers reserve price. Many sellers that sign up for an auction are comforted by the fact that the reserve price will protect them against underselling.
