At Gawler East Real Estate we realise that some within the marketplace will try and win a listing by appraising high and have no, or very poor data to back up their claim. Being human we are naturally enticed when someone states they can get more for a property, than what the market is prepared to pay. The Real Estate Agent knows this and when putting forward a figure, that’s higher than recent sales data, then they are more likely to get the vendor onboard to sign the Sales Agency Agreement.
Once the contract has been signed, the Agent then has the property and the potential sales commission. Many think that real estate is about selling a property but in actuality its about winning the listing. Once the listing has been won, a process called ‘conditioning’ the vendor is undertaken, by slowly adjusting their expectations back to where the market really is.
Excuses will rain from the Agent and there will always be a ‘reason’ why potential purchasers just aren’t taking an interest.
At Gawler East Real Estate, we have witnessed many an Agent withing the conditioning process offering to put the Vendors property up for Auction. The reason for this is simple. On the day the market speaks out and shows withing a hit to the seller’s psyche how much their home is worth. Of course, this figure may not be what the property can eventually be sold for, however, it quickly demonstrates that the home is overvalued and hence the Agent now has an easier time lowering the home owners expectations.
The ABC at the end of March 2023 reveals via a Four Corners 44min airing, the real estate industries deceptive tactics .
The overquoting or ‘conditioning’ within our market segment is mentioned from 28mins 20 secs within the episode.
Please use the below link to gain a deeper understanding.