If you ever wondered whether your real estate agent pushed a little too hard to close the deal, you just might be right. That's according to a study we read about in Business Week magazine.
Basically, real estate professionals get their commission when the deal closes--And even if they wait for a higher offer, they don't get much more money. Meaning, it's not worth it for them to wait. So, researchers decided to see if they pressured their clients to close too soon.
They compared home sales made by agents for clients, versus the way agents sold their own houses. It turns out - agents did much better for themselves. They kept their own houses on the market roughly 10 days longer, and earned almost 4 percent more on the sale. It may not seem like much, but on a $300-thousand dollar house, that's $12-thousand dollars.
So, what's the fix on this? Before you sell, hire an independent appraiser to value your home. Since they have no stake in whether you sell or not, they'll give you a pretty accurate idea of the price you should hold out for.