…and we’ll tell you why.
Some sellers we know recently lost about $300,000 because an agent, living in their building had the listing, and advised them not to accept an offer that was below their asking price, but well above the most recent comparable sale. Three other agents, representing the sellers of other units around town, have reportedly done the same thing.
Think about this: If an agent owns a unit in your building and you’ve recently hired them to list yours, when the time comes that you have an offer, are they likely to advise you to accept said offer, if it, in turn, lowers the value of their own unit?
What if you sign a listing with an agent in your building, and they decide it’s time to sell their own unit while yours is still on the market? Fiduciary responsibility, ethics, and commission aside, who’s property do you think they’d rather sell? Be honest, because your agent just became your competition.
We’ve tried to come up with some positive reasons for listing with an agent who has an interest in the same building, but aside from them knowing the building inside and out, and being right nearby for showings, we can’t think of any others. Sure, they’ll do their best to get the highest price, because that helps them too, but just think long and hard about that sales pitch they’re throwing your way.
At the very least, you should make an addendum on your listing agreement to the extent that if your agent lists their property in the building while yours is on the market, you can walk from the contract. Better yet, look outside of your box! There are plenty of good agents out there.
Maybe our readers can uncover some more reasons (pro or con) for us.