House Not Selling - Did Your Agent Lie to You?

Owning a home can be a great experience.....until you go to sell it. Most homeowners wish for a very quick sale but for top dollar. When homes linger on the market for months and months, patience grows thin and sellers turn to the one person they believe is to blame - their real estate agent.

Did your agent lie to you about the pricing of your home? First, let's start at the beginning. Did you interview more than one agent? What did you experience in terms of listing presentations? Did you hire the agent who walked in full of charisma, agreed with everything you said regarding price and condition, and then promptly listed your house? Or did you list with the agent who presented you with multiple listing service data showing you current pricing in your market and neighborhood, days on market statistics and the one who had recommendations on what you could do to your home to increase the chances of a sale? Odds are you didn't like the lower price the detailed agent presented and likely went with the "smooth talker" who promised you the moon.

Housing markets around the country are in a slump and it is taking longer and longer for houses to sell. What used to take 30 days now may take 120 days or more. This is known as "Days on Market" statistics. What many home sellers don't realize, though, is that agents can track their own "days on market" statistics. Of the listings these agents take, how many days on the market does it take those homes to sell?

To be honest, most agents do not want to know the answer to this question. That may seem odd, but here is why - many agents are just hungry to get listings, any listings. They will walk in your home and take your listing at whatever price you want. They might suggest a price, but when you want a higher price, no problem. As a result, their listings may linger on the market much longer than they should. Statistics prove that homes that are properly priced and in show condition attract the most buyers and the most money.

If your agent did not produce data, usually from the multiple listing service (or MLS), to show you a pricing strategy, you must ask yourself "Why?" You might be a victim of what is known as a "Numbers Agent". This agent will take any and all listings because eventually something will sell, and that is how they will feed their family. They think the more listings, the more money they might make.

As a potential client, you need to look past the allure of all those listings and ask the prospective agents the harder questions -

What percentage of your listings do not sell?

Your listings average how many "days on market"? What is the local average "days on market"?

What is the percentage of list price to sale price with your listings?

No homeowner wants to under-price their home and potentially leave money on the table, but you are hiring a professional for their expert opinion and you should be interested in the advice you are given. Do the sellers have to take drastic price cuts to sell? How many of these listings don't even sell at all, otherwise known as "expired listings"? How many expired listings does this "numbers agent" deal with?

If the average home in your market sells in 45 days, do you really want to hire an agent whose personal days on market statistics are 120+ days? Do you want your agent to promise you the moon regarding your price, but then come back multiple times asking for price reductions? Once your home has been on the market for a while, buyers begin to wonder what is wrong with it.

Some markets are declining rapidly, and your agent should be providing you housing data every 30 days to keep you informed. Has your agent been avoiding you because you are not happy? If you have been getting showings but no offers, or even no showings at all, your market is telling you to rethink your price.

Bottom line - your agent should be keeping in touch with you weekly, letting you know what is going on with your competition and what homes are selling while yours is not. It is time to take a hard look at your motives for selling and if you are willing to do what it takes regarding pricing and condition of your home at this time. Some sellers will be better off waiting until the market improves in their area. The foreclosure rates are skyrocketing because too many homeowners are overextended with their mortgages and cannot sell without writing check at the closing table.

Take the time to ask the hard questions and make a more informed decision. If your current agent won't or can't answer these questions, it's time to find one who will.