The Competent Broker: Special Section

Buying the Listing

Many brokers will argue, if we follow your advice, we are seducing the sellers with an inflated and unrealistic price simply to secure the listing.  They argue that this is just as dishonest as underpricing, because we know that we are overpricing the house and have every intent to lower the price in order to get the house sold (and get paid).  They refer to this as Buying the Listing.

Well don’t forget, I said above that brokers should be honest about what we think the house is worth.  The difference really is a question of who, broker or seller, is in charge.  I propose that we give the seller all of the information and let him make his own decisions.  And yes, some sellers will rely on a broker’s judgment more than others, or more quickly than others. That is perfectly okay.  Again, respect your client.

But the worst part of the whole buying the listing argument is that it is self-serving.  Because I hear this argument the most as a justification for underpricing.  So if you hear it, hold on to your wallet.

Chapter Four:  Brokers Lack Business Savvy