What does it mean if a real estate agent “buys” a listing
It drives me crazy when I go on a real estate listing appointment after (or even before) another broker tells a potential client their home is worth more than it is. One thing people need to understand when they are listing their home is that the selling agent has nothing to do with what your home sells for. You have nothing to do what your home sells for. Do you understand who does? It is the market. The market alone determines what your home is worth.
When a shady agent comes in to your home and tells you that your 500′ Sq cabin built in 1960 with a leaky roof, popcorn ceiling, no heat and a smell that just won’t go away that is located 15 feet from I-70 is worth $1,800,000 you may want to call someone else. Many real estate agents will do this to get what is called a “sign listing”. A sign listing is basically a place for them to put their sign for advertising purposes. If you have 3 other brokers telling you one price and one broker telling you a higher price, you should be careful.
I don’t care who your agent is the chances of them getting over market value is very slim. Not to mention that property still needs to appraise. A bank and appraiser doesn’t really care if your broker told you you can get a specific price for your home. They only care about market value.
I have been on many listing appointments that people say “Joe Agent said I can get $75,000 more than what you say I can” my immediate response is “That’s great so Joe Agent is buying your home for that price?” of course I know the answer to that question. Sometimes I am snarky when I need to get through to people that are living in a fairy tale land.
The moral of this story is if you serious about selling your home don’t just go with the guy that says they can sell your home for the top price. He is probably just looking for a spot to advertise his business. Look at other things like their website, web traffic and presence. Remember 90% of people start their home search online.