6 Biggest Mistakes Listing Agents Make And How They Cost You $

1. Not countering all offers 

In this hot seller’s market it is common to get multiple offers on a home. In fact, a majority of all homes on the market are getting more than one offer. It is very important to maximize the highest return for the seller.

When a lower offer comes in, some agents choose not to counter that offer, instead countering only the top two or three. Note that a low offer often can be at the asking price or above, simply not as high as the other offers.

Several times, we have seen that buyers who make a low initial offer (even at asking or above) are actually willing to pay significantly more than any other offer but unfortunately were never given the opportunity to do so.

The irony is that countering an offer takes an agent just a few minutes. Since there is no downside in countering, then why not counter everyone? I have seen agents lose hundreds of thousands of dollars for the seller from buyers who were willing to pay significantly more but were never given the opportunity to do so.

2. Telling a buyer’s agent not to bother writing an offer on a listed property because the offer is “too low”

Agents should always want to encourage all offers for a couple reasons.

First, you have no idea how high that buyer will really pay. For instance everyone has a different negotiating style and some like to start low but work their way up. Since you have no idea what price they may go up to you should always encourage their offer.

Second, even if the offer is lower than what the seller may want, it is great to have your first offer in hand as that will help generate further interest in the property. Buyers tend to feel more comfortable knowing someone else is interested in a property and it can generate more urgency for them to write an offer as well.

The buyer will not know it may be a low offer as all they will know is that there is an offer on the table. The only legal reason why a listing agent will refuse to take another agent’s offer is if the seller instructs the listing agent in writing not to look at any offers in a certain price range and to tell the listing agent to communicate this to all agents.

3. Not double-checking that the property information on the MLS is accurate 

Based on the review of hundreds of MLS sheets, we have found major mistakes in 90 percent of properties in the MLS. This is a staggering number.

As a seller you may not think this is as bad as some of the other mistakes listed in this article, but it can be. Here’s why.

A buyer or buyer’s agent may be looking for a specific feature and if that feature is not properly listed on the MLS then the buyer and their agent will never find that property in the MLS.

What are the most common mistakes we find on the MLS? The wrong number of stories, whether or not there is a view, the number of parking spots and how much showing time is needed.

For example, let’s say a buyer is looking for a one-story home, wants a home with a lot big enough for a pool or wants an ocean-view property. That buyer won’t find the property because the agent failed to double-check the MLS for accuracy.

The MLS, for example, defaults to 0 stories so it must always be manually changed. Public tax records list the bedrooms, baths, home and lot size and the MLS grabs the information from these records. If a seller added square footage or did any remodeling, these records may be incorrect.

4. Using poor-quality pictures

Many times an agent will take photos themselves or won’t take the time to educate the seller that a home should be staged so it shows its best.

Even with very expensive homes pictures may be dark, the home may not as clean or organized as it should be, or there may be pictures of closets or small bathrooms. You want to emphasize the best features of the home and at different times of day.

If the weather is not cooperating, it’s best to have the photographer come back out to reshoot the house. A good photographer can also help make minor edits, such as making the lawn look a little greener or adding a fire in the fireplace.

Also consider aerial videos using little helicopter drones that have cameras and videos. These drones have become more affordable. It’s also a good idea to incorporate high-quality video. A sample of one we recently did can be found at 1220LasLomasEstate.com.

5. Having too many open houses

Agents typically want to have open houses as a way to promote themselves. Their open house signs are everywhere and they can use the open house to pick up buyers who may not currently have an agent.

The downside to having more than a couple open houses is that the home gets an “overshopped” feeling. There are some homes that are open every Sunday, effectively sending a message that there is something wrong with the property especially in a hot seller’s market when the average days on market is just seven to eight weeks.

Plus, most homes – and especially larger ones – are better suited to private showings since the agent can point out many features that buyers may miss walking through a house by themselves.

6. Overpricing a property to get the listing

By taking an overpriced listing, a home will sit on the market significantly longer and will not only hurt the property but also affect the listing agent’s reputation. The key is to price a property right at market value or even a little below market value to generate as much activity as possible.

Some agents let the owner dictate the price as they are concerned if they tell the owner the price they really think it should be listed for they won’t get the listing. If your home has been on the market for more than three months, it is most likely overpriced. There is nothing worse for a property than to chase the market down as then there is a stigma associated with the property. Almost all the time a property that is priced too high to begin with will sell for a lot less than if it had been priced right the first time.

Anthony Marguleas is the broker and owner of Amalfi Estates for 20 years. He has personal been involved with over 1,000 transactions and viewed over 2,000 real estate contracts. For the past 12 years he has guest lectured at UCLA to over 1,500 students for their real estate class covering topics such as contracts and negotiations. He has also co-authored California Real Estate Client Strategies and has published over 150 articles that have been featured in the Wall Street Journal and the LA times. He has individually sold over $500 million in properties, and was recently selected by The Wall Street Journal as one of the top 250 agents in the country out of one million agents.