ONE
Misconception:
I am not in a hurry. It is better if I list my property at a much higher asking price than what I can sell at, so I can get the highest price possible or have more room for negotiation with potential buyers. (Unless this is advised by your agent due to your unit having unique selling points.)
REALITY.
Property may take longer than necessary to sell and at a lower price.
- Weak marketing funnel: Low inquiry and viewing rates as serious buyers are turned off by unrealistic pricing.
- Highly likely to lose serious buyers who can typically offer the best price for the unit.
- Eventually we may still need to adjust the pricing downwards to meet the right market expectations.
- Inefficient use of time as your subsequent plans are delayed unnecessarily.
TWO
Misconception:
Open listings are good; the more agents I engage, the more exposure my property gets, the faster I can sell and the higher price I can get. It does not cost me more.
REALITY.
The cost is the misalignment of interests between you and the agents representing you.
- In an open listing, agents would be aiming to seal the deal faster than the other agents, because there is a chance of zero remuneration despite the effort put in.
- Agents are then motivated by their own interests rather than represent your best interests.
- Naturally, agents will prioritise working on their exclusive listings rather than an open one.
- Time lag and haphazard communication with multiple agents often result in a lower price transacted.
THREE
Misconception:
The property has just been listed and we have gotten a very good offer right away— at or close to the asking price. Since I have the time, I should wait for a higher offer.
REALITY.
That first offer that has come fast and high is likely to be from a very serious buyer who is willing to pay top dollar for your unit.
- In an open listing, agents would be aiming to seal the deal faster than the other agents, because there is a chance of zero remuneration despite the effort put in.
- Agents are then motivated by their own interests rather than represent your best interests.
- Naturally, agents will prioritise working on their exclusive listings rather than an open one.
- Time lag and haphazard communication with multiple agents often result in a lower price transacted.
