Many sellers of Calgary MLS listings do not exactly know how overpriced listings really affect them. Sellers are looking to capitalize on the sale of their home and get "top dollar". What most sellers don't realize is that having a Calgary real estate agent agree to MLS list their home is an actual disservice to the seller. So why do Calgary real estate agents actually agree to take overpriced Calgary MLS listings?
To Take Ownership of the Listing
In a highly competitive industry, Calgary real estate agents resort to various ways to secure a listing. A seller is content when his property is priced at the top end of the market. He can sit and wait until the "right" buyer comes along to give him his unrealistic price. But little does he know that when he chooses the agent with the highest listing price, without regard to market conditions, he's actually losing out. When the home sits for an extensive time or "Days on the Market", the Calgary realtor or agent loses interest and typically puts his energy into the next listing that has a higher probability of actually selling.
After being overpriced, the seller's Calgary home becomes "dated" in the MLS marketplace. More often than not, this leads to price reductions in order to attract real buyers. The lesson for sellers is that they need to hire agents with the best negotiation skills and clear marketing plans than those that present the highest potential values.
For agents, Calgary listings with a “For Sale” sign means free advertising and self promotion. Most signs contain the Calgary agent's mobile number and website. It serves as a billboard. Drivers passing by the area see the sign with with the name and details. Regardless of whether or not the seller's property gets sold, the Calgary agent gets a lot of exposure with no extra cost. This is one of the reasons why Calgary real estate agents take overpriced listings.
Establishing New Buyers Via Listings
An interested property buyer typically calls the agent's contact number to find out the price. If the price is out of the buyer's range, the selling agent may recruit the interested buyer to help them find other homes more in their price range.
Open Houses are one of the most common places where an agent can make contact with a new buyer. The Calgary agent can then easily proceed to show other homes to the buyer.
Some Calgary agents may advertise an overpriced home for sale without placing the address - only the price and description. Interested buyers wanting to know the price typically call since their affordability level is already determined. So when he doesn't choose to buy the seller's property, the Calgary agent can offer him another Calgary MLS listing at the same price level.
Price Reductions as a Fallback
Overpriced MLS Calgary listings may not really matter to some Calgary agents. They may still accept the listing from the seller with a plan to ask for a price reduction if no sale or showings occur after several months. An overpriced MLS listing that sits on the market for a prolonged period of time gets "stale". This creates a stigma with buyers and their agents as they wonder why the property has been on the Calgary real estate market for so long.
With the passage of time, the seller can then be persuaded by the agent to reduce the price of the home. But actually it does not achieve the seller's goal. Buyers may even wonder if there's something wrong or some defect with the home that made the seller reduce the price. This may not actually worry the Calgary agent who may then move on to the next listing to sell. This is another reason why Calgary real estate agents take overpriced listings.
Knowing these insights, the home seller should carefully consider his options when "hoping" to get the most amount of money from the sale of his Calgary home. A Calgary real estate agent with honesty, integrity plus the proper negotiation and people skills should be chosen over someone who merely sets the highest price.