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| PikeNet
Dispatch, September 9, 2003 Vol 8 No. 66 (695), "More than 9,000 subscribers" |
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| Do You Follow Your Agent's Advice? | ||
Motivation
and Timing... Last month's Dispatch, Do
You Play Moneyball? (Aug 19), referenced an article in
the New York Times titled "The Probability That a
Real-Estate Agent Is Cheating You" (Aug 3, 2003). The article
mentioned a study by economist Steven Levitt that found that agents'
homes typically stayed on the market for 10 days longer and sold
for 2% more. Not surprisingly, this prompted some lively comments
from Dispatch readers.
Richard von Werssowetz with Broad Street Partners in Charleston, SC, arrived at a different conclusion. "I think this data probably proves that most clients would do better if they took their agent’s advice." Mary Wood with the GSA speculated that "Maybe agents are more likely to sell their house before they buy the next one and aren't sitting there gnawing their fingernails with a bridge loan." And David Berger with Colliers International in Miami wrote, "Another explanation to Mr. Levitt's observation that agents' homes sell faster is because they listen to their own advice." ... All this reminds me of the joke, "I'm teaching, but you're not learning!" A letter to the editor of the Times from a real estate broker raised the important issue of timing. "Most sellers are doing so to move on to another house or to another location and often have serious time constraints. Included in the data that Levitt collected were, in all probability, properties owned by real-estate agents for investment or, God forbid, speculation. Without the pressure to sell for any reason other than to get the highest price, it would make sense that the agent could afford to wait longer and perhaps get more." ... Which goes to prove that the same data can be interpreted differently. --Peter Pike | ||
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