20 Mysteries of Real Estate: Mystery 1 - Why Choosing an Agent Based on the "Middle Price" Could Cost You Thousands
- Posted By Andrew Brown
Don’t Fall for the “Middle Price” Trap When Choosing an Agent
You may have heard this advice before: Get three market appraisals from different real estate agents and choose the one that gives you the middle price. Some so-called experts say this is the best way to pick an agent.
Their thinking goes like this:
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The agent who gives the highest price is just trying to “buy your listing” by telling you what you want to hear.
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The agent with the lowest price doesn’t know what they’re doing.
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So, the agent in the middle must be the most accurate.
But is that really true? Not necessarily!
The Risk of Picking the Wrong Agent
If you choose an agent just because their price is in the middle, you could be making a costly mistake. This idea assumes that all agents have the same skills in marketing and negotiation, but that’s simply not true. The wrong agent could:
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Underprice Your Property – If your home is listed too low, you could lose tens of thousands of dollars (or more!) because buyers will pay less than it’s worth.
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Overprice Your Property – If your home is listed too high, buyers won’t be interested. Your home could sit on the market too long, making it harder to sell later.
The Right Way to Choose an Agent
Instead of guessing, ask each agent for a Comparative Market Analysis (CMA). This report looks at recent sales of similar properties in your area and helps you understand what your home is really worth.
Don’t just assume the middle price is right—make sure your agent has the market knowledge and negotiation skills to get you the best possible price!