There are many little know secrets in the real estate profession that agents never want clients to ever know about. One of the most egregious is when a listing agent deliberately lies to get the listing. This happens all the time. Big well known listing agents or small, this practice is universal. The scenarios goes like this.
The potential listing agent tells the sellers that their house is worth way more than any other agent came up with in their Comparative Market Analysis’. Then they say, “If you sign with me you will get way more money!”
Human nature being what it is, and the fact everyone wants more for their property, the sellers usually sign. When the house doesn’t sell because it is way above market value, the listing agent then goes back every two weeks trying for a price reduction until the house sells. It means the house is on the market longer, but it eventually does sell. In a hotter market the agent may not need to lower the price, all they need to do is wait until the market rises until the market price equals the sales price. It may take months to do so, but eventually it gets there. Time on the market is thus extended to sell the property.
What the sellers don’t realize is that they have now rewarded this reprehensible practice and it is why it keep happening. I can’t tell you how many times I myself have lost a listing because of this unscrupulous practice and then sat back and watched the house go down in price until it sold in the price range I told the sellers it would sell in, or it took much much longer to sell then the sellers wanted. I was honest and the other agent wasn’t, they got the commission through dishonestly.
So dear home sellers please try not to fall for this practice and if you have please realize that you can cancel the listing agreement at any time with your present listing agent and then hire the agent/broker that was honest with you to begin with. We need to stop rewarding this dishonest practice among some real estate agents.