Home / Business and Economy / Agent's Price Game: Sellers Beware!
Agent's Price Game: Sellers Beware!
22 Nov
Summary
- Estate agents overprice homes to win listings, then advise price cuts.
- Sellers cutting prices within four weeks sell homes faster.
- Market uncertainty and potential tax changes impact buyer demand.
Estate agents sometimes employ a strategy of overvaluing properties to secure listings, a tactic that proves detrimental in the current buyer's market. This approach aims to win the seller's business by promising higher prices than competitors, only to push for significant price cuts later.
Research indicates that sellers who reduce their asking price within two to four weeks of listing are more likely to achieve a sale. This contrasts with those who wait longer, highlighting the importance of timely and substantial price adjustments to attract buyers.
Beyond agent tactics, the housing market faces headwinds from potential tax reforms and economic uncertainty. Many buyers and sellers are adopting a 'wait-and-see' approach, which has led to decreased demand, fewer new listings, and reduced overall transactions in recent months.
