Valuable Home Pricing Tips That Every Agent Must Know
Most realtors get asked that more than enough times, and it seems to be the most frequently asked question from the general public.
Another commonly asked question that realtors get is “What’s my house worth?”
The first question can be answered easily with some market knowledge and data, but the question of their home’s value is trickier.
Most homeowners that inquire about the value of their home already have a number in mind. If they are any bit serious about selling their home, they have done their fair share of research about their property. However, a large percentage of homeowners that are looking to list their property for sale are emotionally attached to it, which in turn raises the home’s value (in their minds).
All the emotion involved from the sellers can make a listing presentation difficult for real estate agents. Most agents do quite well on the first part of the presentation, which is convincing the sellers that they are the right agent for the job, explaining all of their marketing services, and mentioning their firm’s amazing track record.
Then comes the biggest hurdle of the listing presentation: the price. After revealing an analysis of the current market, realtors present either a price range, which offers flexibility, or just one price.
Both strategies have their risks. Offering a price range can make you seem less confident, but offering just one price can make them feel like there is no room for negotiating.
Typically, homeowners already have a price in mind that is higher than what is presented to them. It happens too often in these cases that agents list at a higher price to temporarily please the seller, only to resort to a price reduction later on. However, the longer the home sits on the market, the less attractive it becomes to buyers. When you factor in the additional carrying costs of the home, this strategy may not be such a good idea.
If you find yourself competing with another agent for a listing, it can be hard to stick to your pricing expertise. However, pricing a home right is one of the key skills that a successful real estate agent can offer. The homeowner may think they know their home and even the neighborhood, but they don’t have the powerful negotiating skills that you do.
So, how can you stand your ground when a seller is pushing for a higher list price?
Here are some effective tips to help you price a property right:
1. Get Backup
Get a pricing opinion from your broker or a fellow seasoned agent. Use what they say to back up your expertise. A homeowner will become more lenient once they see that others share your thoughts about the price of the home.
2. Higher Price Means More Marketing
Explain to the homeowner that listing their property at a higher price will also require a larger marketing investment, and the advertising campaign could run longer. A well-priced home will generate much more interest from less marketing efforts.
3. It’s Better to Sell Fast
Demonstrate the benefit of lower days on the market. Explain that a listing can lose it’s appeal after a long period of time on the market. Also, factor in the carrying costs for the homeowner based on their current expenses to help make your point.
4. Negotiating Strategy
Talk about negotiating strategies. Point out to them that a well-priced listing can attract multiple offers at the same time, which can be used against each other to negotiate for a higher sale price.
When it comes down to it, it’s your job to decide whether the property can be successfully sold at the price that the homeowner wants. Listing a property at an unreasonable price and hoping for it to sell is not an effective strategy.
Remember that your reputation is on the line, and being unable to sell a home can hurt you more than a miracle sale would help you.