Real Estate Agents: we don’t make the market!
If I had one Baht for every time that owners and vendors confuse the role of a real estate agent, I’d be well retired by now.
A typical conversation goes something like this—
Owner: “I want to sell at Baht 15M.”
Honest agent: “Sorry, sir/madam, the best we can get in this market is Baht 8M. That’s the market price; the price a willing purchaser is likely to pay for your property.”
Owner: “I can’t sell for that, that’s ridiculous. Just try at Baht 15M, I’m sure you can get that if you try harder.”
Honest agent: “Sorry sir/madam. The “market” is a collection of an unknown quantity of purchasers and vendors, the exact number of which may change from day to day. It is an intangible entity and the price of your property is determined by the market, not by us.”
Honest agent: “The role of a real estate agent is to interpret the market, look at the forces of supply and demand, and assess what prices vendors may sell property for, and purchasers buy for, having regard to sales of similar properties around the same area and in the same period of time.
However, we do not determine the exact price to be paid, that is fixed by negotiation between purchasers and vendors. We are a link between the parties.”
Owner: “I see.” Pause. “But can we try at Baht 15M?”
Honest Agent: [sighs] “Maybe let’s do this. Please call me back in 6 months when your property hasn’t sold and we can talk about the asking price again then.”
What do you think? Sounds familiar? Know someone with an inflated opinion of value of their home?
Perfect Homes is a leading Chiang Mai real estate agency with extensive experience in the city, regionally, nationally and internationally.