Picture this! You are sitting across from a Real Estate Agent. You tell the agent you want to sell your house at $175K. The agent tells you that the house’s value is $150K. You insist you cannot take less than $175K. The agent smiles, telling you that “you are the customer, I guess I will have to try to sell it at $175K.” Was the agent wrong in agreeing to sell your house at the price you wanted?
According to the National Association of Realtors, the agent was very wrong! It is unethical for any agent to list a house when they know it is more than market value. Here is the section in the NAR Code of Ethics stating as such….
- Standard of Practice 1-3
REALTORS®, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.
Hold on you say…the agent in my example tried to convince the client that it was overpriced. Sure. They did, but in taking the listing at the elevated price, they,in essence, mislead the client through their actions.
Be careful out there when working with agents. Some will take your business with no intention of selling your house. After all, their sign will be in front yard for six months while your overpriced house does not sell.