It’s a strange reality that we judge a professional on statements largely out of their control.
Recently a friend of mine interviewed two property management companies about renting out their house for one to two years.
They felt their property was worth between $1000 and $1200 per week. The first agent was, in their words “amazing”.
He explained what was involved in renting the property, how their company managed properties and the benefits of furnished versus unfurnished. But he said the rental would likely be $750 – $850 per week.
The second agent was not as impressive. She didn’t have a clear understanding of how a property was managed, she couldn’t explain any point of difference and she didn’t know how liability worked with furnished properties.
But, here’s the kicker, she priced it at $1300 to $1500 per week. My friend was deeply conflicted. He knew the frist agent was the right option, but he aligned with the optimistic price of the second agent. He said words like “she believes in my property”.
In the industry, we call that ‘buying the listing’.
It’s a term that means the agents will just say a price that is at or above the owners expectations.
It’s a low skill, high return play and is unethical. I told my friend that if the second agent’s only skill was saying a high price, then why didn’t they just list the property with the first agent at the higher price? Their experience was poor and the property was rented with another agent for $840 per week.
Cush For Comment | 07 May 2023
It’s a strange reality that we judge a professional on statements largely out of their control.
Recently a friend of mine interviewed two property management companies about renting out their house for one to two years.
They felt their property was worth between $1000 and $1200 per week. The first agent was, in their words “amazing”.
He explained what was involved in renting the property, how their company managed properties and the benefits of furnished versus unfurnished. But he said the rental would likely be $750 – $850 per week.
The second agent was not as impressive. She didn’t have a clear understanding of how a property was managed, she couldn’t explain any point of difference and she didn’t know how liability worked with furnished properties.
But, here’s the kicker, she priced it at $1300 to $1500 per week. My friend was deeply conflicted. He knew the frist agent was the right option, but he aligned with the optimistic price of the second agent. He said words like “she believes in my property”.
In the industry, we call that ‘buying the listing’.
It’s a term that means the agents will just say a price that is at or above the owners expectations.
It’s a low skill, high return play and is unethical. I told my friend that if the second agent’s only skill was saying a high price, then why didn’t they just list the property with the first agent at the higher price? Their experience was poor and the property was rented with another agent for $840 per week.