Thursday, July 24, 2008

Loss Leader Homes - Why Listings Don't Sell

Loss leader refers to a listing which never sells and only benefits the listing agent. These homes sit on the market for months and even hundreds of days without selling. The agent benefits because home owners in the neighborhood think the agent does big business when in fact most of their listings never sell. You can find an agent like this who make outrageous claims about buying your home after X number of days or selling your home for free when buying one of their other listings.

The agent takes ANY listing and usually at a price the seller thinks they can get for the home or hopes to get - usually unrealistic. The agent benefits from having buyers call about the home which then the agent tries to sell a more realistically priced home in the neighborhood.

You can probably find a loss leader within a few minutes by search the MLS. They are the ones with no or poor quality pictures and a description with just a few words. We all know the biggest factors which cause a home not to sell is price, location, condition of home, and accessibility. Marketing a home correctly with quality pictures is important because 90% of home-buyers start looking online.

I really don't understand why a home-owner would hire an agent who doesn't have any intention of selling their home professionally and quickly. The entire purpose of listing a home is to sell it for top dollar and only this can be achieved if the home is priced right, accessible, and market correctly to the general public and to other Realtors.

More articles you should read:
Selling Your Home? A Realtors Perspective
No Picture? Blame the Listing Agent

If you're thinking of selling your home or haven't received the results you were promised, call an agent who's intention is to sell your home.

Written By: Richard Johnston, RE/MAX OTB

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