The Penalties of Overpricing Your Las Vegas Home

Why would anyone want to overprice their Las Vegas Home? Ask any listing agent, and they’ll tell you that there could be many reasons for a seller to either think or “feel” that their home is worth more than their neighbor’s, most often with little basis in fact.

Dumb as it may seem, some sellers are on an ego trip and expect that any buyer would be “privileged” to buy their property. Others really need the money, and are hoping that some buyer may come along who is willing to agree to the seller’s asking price.

Some buyers don’t care at all what the market has dictated as to selling prices for similar homes in their neighborhood, and with greed overtaking common sense, they ignore the advice of their Las Vegas Listing Agent and hold firm on what they insist they should get for the property.

It’s amazing how stubborn some sellers can be.  Even though they are willing to pay a commission fee for representation, they refuse to listen to the person they contracted with to sell their home, paying little regard to their agent’s advice on sensibly pricing their home.

Talk about someone shooting themselves in the foot! That, in fact, is exactly what these thick-headed sellers are doing.

What the seller doesn’t realize is when he finds a listing agent who agrees to represent an overpriced property, and the agent is unable to convince the buyer that the price is out of line and unlikely to attract buyers, the agent may well decide to either terminate the agreement, or hope to convince the seller to “get realistic” after seeing that the house is not attracting buyers and hopefully agree to lower the price.

If all else fails, the agent could decide to use the home as a contact point to help meet other clients.

For example, if the seller wants, or agrees to market the property through an open house, the agent is then in a position to discuss other properties for sale with potential buyers who visit the property, if they are turned off by the asking price.

Listing the home’s features without specifically advertising a selling price puts the agent in contact with buyers who have called to ask about price.

If they aren’t interested in negotiating for the property due to the asking price, and are not represented by another agent, the listing agent could try to recruit the buyer to work with him or her.

“For Sale” signs advertising the property list the agent’s company and the agent’s contact number. Once again, this is another form of free advertising for the agent.

So, if ego or greed overtakes common sense, and a seller insists on disregarding his agent’s advice, it is the seller who will be the ultimate loser, and not the agent.

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Tony Sena is a Las Vegas Real Estate Broker/Salesperson and Designated Property Manager with North American Realty of Nevada.  He currently oversees a team of 10 real estate agents and manages the Property Management Division.  He can be reached at 702.376.0088.