Why Do Agents Spread These Myths?

Call me a whistleblower, but I cannot go along with “myths” (a gentler word than lies) spread by real estate agents. Fact and fiction should not be blurred. Your home is most likely your most valuable and expensive asset, so be careful with agents who play into common sales tactics to convince you to hire them. The following are three myths that I have commonly come across.

Myth 1: “You Won’t Get Your Money Back On Repairs”

Sellers are commonly reluctant to put any money into making repairs or staging their homes and say things like, “The buyer will pick their own paint and flooring.” Good agents know that you will most likely need to make repairs and improve the condition of a home to sell it. It can be challenging to convince a homeowner to make the necessary improvements, and it is easier to just go along with the seller’s wishes and get the listing paperwork signed. But it is the job of the agent to provide accurate counsel and advice.

If an agent lets you dismiss stained carpets, water leaks, outdated paint colors, and other mechanical or cosmetic issues without a good reason then they should not be your representative. I strongly recommend all sellers visit a model home of a reputable local homebuilder before listing their home for sale. The model homes are impeccably clean and free of debris and clutter. This is how your home should look, or you will be penalized in your price or risk salability.

Think about selling a car. Would you get it washed and detailed? Of course you would, and you should do the same for your home before you list it. I always tell my clients, “It is cheaper to make repairs than to reduce the price.”

Myth 2: “I Have A Buyer For Your Home”

All sellers are desperate to hear, “I have a buyer for your home!” Some agents will tell a seller just that, despite the truth. A common tactic by agents is to send a letter to a neighborhood stating they have buyers looking to buy in the area. Wow, that is an amazing proposition: Selling your home without the hassles or fees of an agent is a compelling pitch. But the reality is that the agent doesn’t have a buyer; the agent is fishing for a listing. Your response to the marketing letter identifies you as a seller to the agent. Before you know it, you are sitting through a listing presentation instead of being presented with a buyer.

The law of agency in real estate states that an agent can only work for one party. If an agent has a buyer, they are the buyer’s agent, plain and simple. To achieve maximum value for your home, it is best to expose it to the largest number of potential buyers possible through the assistance of a listing agent. Remember: The buyer’s representative has been hired through a dedicated buyer broker agreement to help the buyer obtain the best price and terms, which means they are not on your side.

Myth 3: “A Comprehensive Marketing Plan”

Some agents do not have any marketing plan other than putting a sign in the yard and entering your listing into a multiple listing service. When pushed for a marketing plan, agents often scramble and suggest things like open houses, brokers’ open houses, print advertising and anything else you may want to hear.

A true marketing plan incorporates the four P’s of marketing: pricing, promotion, product and placement:

1. Pricing is the most crucial part of your marketing plan in real estate, and a genuine professional will educate you about the complexity of a pricing strategy.
2. Promotion of your property is the activity an agent will do to generate interest among fellow agents and buyers.
3. Product is your home, and your agent should help you present it in the very best light to buyers.
4. Placement is the location of your home, highlighted by accentuating the features of your neighborhood, local schools, area amenities, local events and the other nuances of a specific location.

This article was, in part, an excerpt from David Orso’s book “Step Inside: The Unfiltered Truth About Listing and Selling Your Home.” If you would like a free copy of David’s bestselling book, contact him directly at 443-691-0838.

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