When it’s time to sell, like most people, you will more than likely speak with a few real estate agents to get their views on how best to market and price your property.
Like most people, you will probably get a large degree of variance from the agents on the expected price your property may achieve. It can be quite confusing trying to identify which agent has priced your property correctly.
The agent who quotes the highest price is usually the most appealing. But they can also be the most dangerous, particularly if they want you to invest in their ‘premium’ advertising campaign. This investment is always paid in advance, regardless of the outcome of the campaign.
Only if your property sells at or above the sale price the agent quoted you, can the campaign be considered a success.
Insist that your agent signs a price guarantee in writing.
A guarantee that if your property sells for less than your agent quoted you: (1) you pay the agent nothing for advertising; and (2) you pay them no commission.
Many people call this price guarantee a lie detector test for real estate agents. If the agent is confident of achieving the price they quoted you, they won’t mind getting paid for the advertising on delivery of the promised result. If they refuse to sign such a price guarantee, you too should refuse to sign their listing agreement.