Selling agent - quick sale vs highest price?

I currently have my 4 bed renovated PPOR on the market for auction and despite recent comparables achieving good numbers, I’m sensing my agent is already trying to manage down my expectations and referencing buyer price feedback at a level from 3 months ago. I pointed out the most recent 3 bedder without major renovations down the street (which we actually included in our brochure) sold Sept much higher than a current offer and it’s hard to accept anything lower than that, and she said it’s a different campaign and it’s still early days (2nd week) and need more buyer feedback to gauge accurately - nothing wrong about that but I’m surprised in this hot market I’m actually having this conversation with my agent. I also notice she has quite a few new listings. I do have a lot of confidence in my agent’s ability and like her, but I’m wondering if she is reflecting changing sentiment from buyers (in which case she should just say so) or is she “conditioning” me to sell quickly before auction so she can move to the next one?

 

A little bit of everything in this one.

The agent may be conditioning you based on buyer feedback, and most buyers are probably trying to talk down the value or making lowball offers and hoping you as the vendor get nervous....

The agent is hedging their bets, conditioning you to accept a lower price or to make them SHINE if it sells over expectations, either way it's a win for them.

You will just have to let it run to auction.
Tell the agent (next time you chat) your min price (based on those comparables) and stick to it.
On auction day don't get nervous and reduce your reserve, let it get passed in if you have to, plenty of auctions are passed in but sold on the day via negotiations after.

Good luck

 

Great tip, agree with all of this thanks

 

Most if not all agents will attempt to condition their client as the campaign goes on.

I always (inwardly) treat my agent as an extension of the buyer and greatly limit them knowing my true intentions. I always follow a narrative which aids to convince them I won't be selling below X amount which is probably 5 to 10% higher than what I'd really take.

If the agent believes you won't accept less, they will be far more likely to push and pressure the buyers to come up.

 

Exactly, make them work for their money - if they know that their payday is in jeopardy they will work to get a result.

 

This reminds me of a very valuable life lesson - if you don’t push forward your own agenda, other people will push their’s on you. I have been guilty of being too nice and trusting of agents in the past.

 

Most sellers approach a agent with expectations that could exceed possibility and then they get fixated and stubborn and limit the sale. They all want that top sale or the highest price above the expected range. And dont ignore features of your property are always different to the other property. Hopefully there are a handful of local buyers who have missed out and still eager. The agents job is to ensure you are realisitic and arent a top price chaser who will then refuse fair offers and chase buyers away. Then they tell interested people - "He wont budge on his price despite good offers" so some buyers dont even look or are turned off thinking is a cost above market. But you also dont want to get to auction day and get the story about why you need to sell it lowball either. Dont be too honest with them about your base price as Sackie says. They will then have a floor for selling down to.

 

The agent wants a sale.
That is when they get paid.
Do your own research and stick to your guns.
No harm in going to auction.

 

Some of these comments...with respect-wow. Sure there are agents that "condition you" (welcome back 1980's) as with any industry, but they'll have a very short career.

If it's auction, proceed to auction. If you receive an offer you feel happy with, accept . You will not receive your price, you'll receive the market price. The agent doesn't dictate that price, the best they can do is influence that price.

Stock levels are on the rise and it will put pressure on prices.(Forget Super Saturday — a buyers’ paradise may be on the way) . You said yourself that she has several new listings which if similar, would put pressure on your home right?

To me it sounds like she is keeping you up to date with buyer feedback in a market that's changing day to day. I'd want my agent to give it to me straight.

 

In the purest sense, that will rarely happen.

There's what the seller wants, the buyer wants and what the agent wants.

There are definitely things a savvy seller can do to increase the chance of getting a better price. The challenge is, to be a savvy seller in the first place. If you sell 1 or 2 properties in your lifetime, you'll likely not be well versed in how the game is played and have counter strategies ready.

Make no mistake, many, many agents have very specific strategies used for different situations.

The last place I sold....we had a master plan of a strategy with all the smoke and mirrors on auction day....and really the strategy was completely targeted at 1 very specific buyer. It worked like clockwork to secure the price we wanted.

There is a lot that goes on behind the scenes with buying and selling. The more prepared you are to handle your agent, the better the potential to secure the best price possible imho.

 

They appear in every boom then disappear when they don't meet their KPIs.

 

No issue with the agent giving me buyer feedback even if they are low ball offers - what I do take issue with is being countered when I mention the comparable property down the street - that she included in the marketing brochure - which has one less bedroom, less renovation and in an inferior position. I don’t want someone who is managing down my expectation, I want an agent on my side telling me what they’ll do to get the prevailing market price, not a price I would have expected getting 3 mths ago, so yes I’m a bit disappointed. Unless the market suddenly falls off a cliff which it isn’t, don’t take me as stupid as if I don’t monitor sold prices. Anyway, the true test of the market is at auction so we’ll see how it goes.

 

I was in a similar position when my selling agent tried to brainwash me into accepting a low ball offer. Instead of highlighting the good points about my property, she did the reverse -- she pointed out everything that was wrong about the house and tried to justify [to me] why I could never attain anywhere near the prevailing market price.
I insisted on sale via auction, cleaned up the house and engaged home-styling, and had the agency assign me another agent. That auction was a success -- with sale record smashing prevailing market price by $125k.

 

Wow that takes balls...kudos to you!

 

why not just have a straightforward conversation with the agent and say exactly this - they work for you after all.

 

How many houses have you sold ...

 

One or two, I ran out of fingers & toes

 

Could well be conditioning.

Could be an agent that would rather disappoint you with the truth than comfort you with a lie.

Leaning towards the former if you’ve got comparable sales. Parroting numbers quoted by buyers is at best lazy and at worst conditioning. Every buyer I’ve ever sold a home to wanted to buy it for the lowest price possible.

 

and I have never met a vendor who didn't want the highest price ...

 

@Sackie counts 16, 17, 18..as he moves his wifey's toes...