Paul Wrigley comments on Auctions and the conditioning that Auction Agents do.
Conditioning, as described by Neil Jenman in his book Real Estate Mistakes, is the process of persuading the seller to reduce the price of a property. It is accepted in Real Estate that “conditioning is easier with an Auction”.
Before you sign up for an Auction you will be quoted a high price. Once you sign, the conditioning process begins in earnest.
It goes something like this:
Seller passes money to agent to advertise house, big signboard, big brochures, etc. etc. In effect the seller gives the agent money to go buy a hammer to smash the seller over the head with it. (Condition). Some of the things the seller will hear from the agent are:
We’ve had 200 people through the opens and the market tell us your expectations are too high”,
“We’re getting interest at X, which is usually less than first expected”.
Mr & Mrs Seller surely you can see with all the advertisements we’ve placed, we’ve reached all potential buyers and the buyers are not at your level.
At this point I hope you’re getting the picture that you as the seller, paid for the hammer (Advertising) and your agent is smashing you over the head with it!
Have Some Questions at This Point.
- Shouldn’t the agent know where the market will be for your property, after all it is his job to know?
- If the agent knew the market price why didn’t he tell you to begin with? Could it be, that if he did he wouldn’t get the listing?
- Why should you, the seller pay money to condition yourself? This is madness.
Offer Some Possible Solutions.
- If the agent is so confident to begin with, get him to pay for the campaign and if you get a result you’re happy with, then you pay.
- Get the agent to guarantee the quoted price and if it’s not achieved he sells your home for free.
It’s called putting your money where your mouth is.
P.S. If the agent doesn’t agree to this call us, we will.
Story by Jim Grigoriou