Mick’s Stories on Losing Thousands
2. The "quote lie" is the first in a series of deceptions, so be wary of falling for it.
Finding sellers is a crucial point of competition for real estate agencies. Listings automatically lead to sales because there is always demand. Many homeowners will interview several brokers before settling on one to sell their home. A common criterion for selecting a realtor is the agent's ability to provide the highest possible valuation for the property. Therefore, the agent who tells the biggest lie usually ends up with the seller's business, as that agent will overquote in order to appease the seller.
In real estate, it is common practice to intentionally over-quote a property (a practice known as "buying the listing"). Even though thousands of agents are able to get away with this kind of fraud every day, it is important to keep in mind that doing so is not actually against the law. Now the onus is on the seller to learn the tricks of the trade used by the majority of real estate agents.
When dealing with a skilled con artist, you may not even suspect you are being taken advantage of. Most home sellers who fall victim to one of the real estate industry's many misleading tactics have no idea they were duped.
“Don't "sign anything," as Neil Jenman advises until you've verified that your safety and the value of your property are protected from the agent's procedures and system. Because you are entrusting your agent with one of your most valuable financial assets, it is imperative that you feel confident in the selling process and the agent's representation of your interests.
“Don’t sign anything”
Neil Jenman
You, as the seller, should direct the sale of your home. Demand that the agent's quote be put in writing and signed by both parties and make them accountable if they don't sell the property within the quoted range. Do not work with the agent if they refuse to sign this. Since they wouldn't have intentionally over-priced your property, to begin with, a trustworthy agent should have no problem signing this.
To avoid being duped by the "quote lie," it is important to research recent sales in the area and determine an accurate estimate of your home's value. A professional with no vested interest in the sale of your home can also provide an impartial assessment. Professional valuers are held accountable for their assessments and have no reason to give you false information. Choose a reputable negotiator over the one who provides you with the highest quote, and you can rest assured that they will work to get you the best possible price for your home without resorting to tricks.