johan horak’s energy flow

Property owners often complain that agents undervalue their property for a quick sale, but overpricing a property can be a bigger mistake. If you want to attract a fair offer for your property, price it right, especially during tough times.

"Too often people want to pay their kids' college tuition and retire on the proceeds of their property," says RealNet Silver Estates owner Yolanda Pelser. She is joking, but only just. She stresses that people tend to overprice property when they first offer it to the market and exacerbate the problem by signing lengthy sole mandates with agents. 

"By signing a year mandate with an agent, you are not raising the price of your property, you are driving the market down." She explains that "during a sole mandate owners are excluding other offers on their properties, so there will be few if any bids from different potential buyers." This raises the chances of a property becoming stigmatized and a "non-seller".

Yolanda believes sole mandates should be no more than three months. She offers a controversial alternative: "By pricing a property at the bottom range of your expectations you are more likely to sell quickly and for a higher-than-expected price [price to negotiate]."  I pointed out that this is exactly what creates the perception that agents pressure clients to lower prices so they can make a quick buck. Read the rest of the story on how to correctly price your home to sell.

The owner asks two different real estate agencies to propose an asking price. Because all agents know that the one that suggest the highest asking price win the Jack Russell war. Therefore some will be in the good books with the seller as his ego is polished. As time runs out this agent puts pressure on the seller to reduce the price. And it's to late. The Jack Russell is the only one that wins this real estate war.