There is so much talk about underquoting that it covers up the real crime in this business… OVERPRICING!
It is notorious in this business for agents to overpromise and underdeliver and has been general practice for a long time. I have no problems with being optimistic and putting a plan in place to achieve outstanding results, as long as I have had a transparent discussion with my clients regarding comparable sales around their property and where the market would most likely want to see their property advertised, then I am happy to have a shot at a higher price to see what people think.
What has been common practice with a number of agents since the beginning is walking into a property, selling a big figure to the owner, getting their hopes up so much and basically buying the listing. This is the cheapest trick in the book
When it comes to people’s biggest asset it’s very easy to blind the decision-making process with greed. The only problem is that a very high percentile of properties that go to sale end up missing the market and either sit for sale for months while the agent awaits the owner to get sick and tired of the process and sell at whatever price they can get or alternatively, the owner will be hit up with… “your property is way off and we need a major PRICE REDUCTION if you want to sell it”… they’re also great at making you think it was your choice to advertise this high as well.
When selling, be level headed, look at the facts, don’t be blinded by greed or emotion and make sure you choose the agent you believe will get you the best price possible in the market you’re selling in.
Hope this helps when you’re interviewing agents. Watch out for those old school tricks!