Contrary to what many real estate agents like to believe, agents don’t control the price of your home.
Yes a good agent is likely to get you more than a bad one but agents don’t control the value of your home … just like your UBER driver doesn’t control the price of your next trip home from the Casino at 2am on New Years.
Quite simply… supply and demand determine the value of your home.
The higher the demand for your home, the higher the price you will receive.
The lower the demand, the lower the price you can expect to achieve.
Putting it in beer terms (my favourite terms…) Suncorp stadium is happy to charge me $15 a beer when I am watching the Wallabies get towelled as they know I have 2 choices… I either suck it up or go thirsty.
House prices are no different.
When the market is buoyant, homes sell quickly, buyers have limited choice and there is tough competition, meaning buyers are forced to pay more or potentially miss out on the home. This pushes prices up.
On the flip side, when the market is weaker, there are often loads of homes to choose from, fewer buyers and days on market blow out. This gives buyers more control and often results in the market weakening as sellers are forced to lower their price or potentially miss out on the buyers.
So before you decide to list your home with an agent that quotes you overs for your home, remember… agents don’t determine prices, demand does.