This right here is the greatest challenge that real estate agents have when it comes to getting listings. How do you get sellers to price their home right, from the beginning? Pricing a home is a strategic way to get more offers on a home. The effects of proper home pricing is that it sells for what it should sell for in a timely manner. We’re talking about the fastest sale, most profit, best buyer, etc. Whatever is most important to your seller. They need to know what a home is worth and the effects of proper home pricing. And that information needs to be conveyed by you, their Realtor. Now, there are a lot of things to keep in mind involving strategic pricing. But the main thing I want to get across here is communicating with your seller the selling strategy.
And yes, you can strategize! You’re going to know exactly how to do it after you finish this article. It will completely change the game when working with sellers and getting them to understand your strategy.
Avoid WWWTH Syndrome
The reality is that the longer a house is on the market, the lower the offers tend to get.
I call that the “What’s wrong with that house? syndrome” because buyers wonder why it hasn’t sold. The offers you do get are lower and buyer excitement has died down. People start wondering if the house has expensive problems or maybe the seller is hard to work with. Convincing a buyer that the home is great, after they already have preconceived notions about it, is difficult. So your first foremost strategy to get more offers on a home will be to price it correctly.
So what is the pricing strategy? You always price a house right where it will sell and sell quickly. You’re not trying to price it super low and you certainly don’t want to price it super high. In fact, you want to err on the side of pricing it low, not high. Now most sellers think the opposite for a few reasons. First, they want to get the highest price. Second, they think they can always drop the price if need be. Before you present your pricing strategy to your seller, have it written down so they can see it. And this should be a bit of a presentation. You want to sell them on this because most people don’t sell a house many times in their life. As a Realtor, you sell houses all the time so open them up to your knowledge and experience.
When a house first goes on the market, buyers and Realtors alike are excited. We all love new things don’t we? Think about most things in our lives – social media, fashion, products… These are all produced in an effort to get content out as quickly as possible to catch a person’s attention. Browsing homes to buy is fun when you first start. But the excitement dies down after you start seeing the same houses over and over. If a buyer starts thinking of it as a chore you’re in trouble. And if a buyer doesn’t like the house they’re looking at, the price won’t much matter. You can’t do anything about a buyer that knows your seller’s house isn’t for them. It’s the people that aren’t sure or that love it that you want to focus on selling to. They have to like the house.
So what happens if a buyer loves the house but it’s overpriced? If nothing else, their buyers agent will be able to direct them as to the value of the home. And if you’ve grossly overpriced it, a buyer will start looking for reasons to not like the house. A markup of 10% or even 5% over market value can cause an upset. Have you ever found something you loved at first sight – a product of some kind? And then looked at the price tag and immediately fell out of love? Correctly pricing a home will ensure that never happens to you.
The Magic Strategy
Underpricing your home will lead to something pretty great. If a buyer sees the house and loves it and loves the price, they will make an offer. Now, they may meet your listing price or they may offer more in the hopes of outbidding someone else. This is exactly what a seller wants – hot and fast offers. If a buyer offers the asking pricing and your seller really wanted to get more, they don’t have to accept. Chances are that your strategy for pricing a home will get a lot of attention and a lot of offers. With a lot of offers you can get your seller the best price possible. A buyer’s fear of regret will outweigh paying another five hundred dollars a year on their mortgage.
This also creates a sense of urgency in your buyer. We all know that the quickest sale happens when a person is passionate about what they’re buying. With a good home for sale, a good price, and lots of interest in the property, the home will sell. And this is what your seller wanted all along, right? Everyone wins in this situation!
Correctly Pricing a Home
The initial period a home is on the market is a very critical time. Correctly pricing a home will lead you to get more offers on that home in the beginning. We can all agree that selling a home in a month or two is better than six months or more. That’s fairly obvious, right? But the strategy for your sale should be concise and accepted by your seller. You’re not just selling a home, remember. You’re selling your seller on a strategy. Do the work and the sales will roll in.
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REAL ESTATE AGENT GUIDE
- WHAT MAKES AN EFFECTIVE AGENT
- FIRST 30 DAYS AS A NEW REAL ESTATE AGENT
- FIRST STEPS FOR NEW REAL ESTATE AGENTS
- CONTROLLING YOUR ONLINE PRESENCE
- HOW NOT TO BRAND YOURSELF
- AVOID THE UPS AND DOWNS IN SELLING
- BREAK THROUGH WITH EXPIRED LISTINGS
- FIND CASH BUYERS – YOU NEED THEM
- HOW TO GET MORE LISTINGS – PREPARATION
- GET MORE REFERRALS
- HOW TO GET SELLERS TO PRICE IT RIGHT
- GET YOUR 1ST DEAL FAST AS A NEW AGENT
- JOIN A TEAM OR GO SOLO
- FAST WAY TO BUILD REAL ESTATE BUSINESS
- BUYING INTERNET LEADS DOESN`T WORK
- WHY MOST NEW REALTORS FAIL
- WHY REAL ESTATE IS FOR ENTREPRENEURS
Real Estate Agents: Are YOU Listed in the USDRE ?
The USDRE is a free search engine that home buyers and sellers use to find their ideal real estate agent. We have a custom search-algorithm called Agent Match that analyzes people’s values, beliefs, and outlook on life to match them with Agents that they will work well with on both a personal and professional level.