Over the last two years I’ve noticed an increasing “trick” used by real estate agents who have just shown one of my listings. They call shortly after they’ve showed one of my listings. Their call is to inform me that while their clients are interested in the property, they just can’t figure out where I am coming from on my price. That the property is just simply priced too high. While this might immediately seem to many of you as a tactic for negotiation, you just can’t believe the Academy Award winning acting that these agents put into this tactic. The sincerity and depth of conviction is remarkable!

For instance, I just sold a house in Calgary’s southeast. It was a substantially updated home that had very modern finishes. The buyer’s real estate agent rambled on how he ran comparables and just didn’t know where I was coming from on my price – basically that he thought we were grossly over-priced. But here’s the thing – I ran comparables and I have showed homes and sold in the area and I felt the price we were at was very competitive – in fact that is why we were getting 2 to 3 showings a day! Yes, 2 to 3 showings a day! I listened quietly while the real estate agent presented his argument with great conviction and fervor. He touted how long he had been in “the business” and all of the other listings he had shown his client. Well, the house quietly sold the next day to a different buyer with their agent. The sale has now firmed up with the sale price at 98.29% of list price. In fact, even after it was registered on the MLS system as conditionally sold, I had two further requests to show the property.

So here’s what I think. I think these real estate agents know that their buyers are really interested in the property and they basically start negotiating right after the showing. They start hammering me on price and comparables, touting this listing and that listing. I simply see through their game and shut it down right there and then. After all, the information they use for their argument is usually not relevant and their statistics too general or outdated. Their strategy would probably work better on a real estate agent who is only works part-time (as many do) and who may not be as familiar with the market in that particular area. Inexperienced agents or agents not in touch with current market conditions often fall this tactic and that’s why these buyer’s real estate agents keep using this strategy.

Through the school of hard knocks, I have been able to figure out some of the “tactics” that real estate agents use to manipulate the seller’s real estate agent into thinking they have mispriced their listing. These real estate agents firmly believe that if you can shake up the listing agent, then they will start working on the seller to do a price reduction. This in turn makes it easier to get a seller to agree to a price when an offer comes in lower than expected. It takes experience to see it and shut it down. Let it be known that while the “over-priced tactic” and other bleeding-heart stories work on many agents – they don’t work on me. My client’s don’t pay me to pass along some sad-luck story of why the buyer can’t pay the price we are asking. My client’s don’t pay me to be influenced by the buyer’s agent whatsoever. They pay me to get them top dollar for their home. This is done through research, education and experience. I firmly believe that when a buyer views one of my listings, they can afford to pay the price it is listed at. Let’s keep in mind that the buyer’s agent is not very likely to spend time and money showing the buyer properties with prices that they couldn’t afford in the first place!

So let these real estate agents ramble on….those of us who know better will just shake our heads and quietly wait until they are finished before we sell the house to someone else who doesn’t play games.

Dory Cameron, FRI, CCS
Broker/Owner
Cameron Realty Group Inc.