Many times when taking a new Listing the Sellers ask us if we could just “try” their unrealistic price for a week. Ultimately this is what we do just to appease the Sellers. I mean honestly, what harm could it do? We haven’t even loaded the home on the MLS. We haven’t taken any pictures either. Our marketing plan hasn’t been implemented, so we may as well let them have their price for now. After all, it’s only a week.
This Is What Happens Next
A week goes by and we give our Sellers a call, however now they refuse to do the price reduction we agreed upon at the appointment. Sometimes it works out OK. In a rising market where home prices are increasing. Especially in the spring. Many buyers will overpay and you just might get that price you never thought possible. Assuming that the price is not too ridiculous.
But I Have Found a Better Way.
Remember, you are the professional and having an overpriced listing with a Vendor who is unrealistic about their selling price, is frustrating and expensive! We don’t get paid unless the home sells, and it’s unlikely sell when it’s overpriced.
What I have been teaching my Agents now is, for the Listing Agent to get price changes signed in advance. I would bring a few amendments with you to the appointment. If you get some push back on the list price, then you can still offer to do it for a week at their price. This ensures you still would get the listing. However, now you’re armed with amendments which you got signed for 1 week out. Then 3 weeks out and so on, if needed.
Think about it, this is OUR business. We are out serious $$$ right off the hop. Virtual tours, professional pictures, staging, home cleaning, marketing, flyers, not to mention hours of our time getting all this stuff done. But if the Vendor wont lower their price, it could all be for not. We need to make sure that the home is near Market Value when we list it.
The best time to get the home sold is the first 3 weeks on the market. That’s when we get the most action. Agents are raring to see new properties for the clients they have in mind and will be excited to come over and see the new listings. If the home is over priced, they wont be bringing their buyers for showings. This is why it is very important to get the price change done within the first week.
Don’t make the mistake I made early on in my career and get bulldozed by the Vendor into pricing the home and whatever price they want. Bring your data, do a good comparative market analysis (CMA) and stick to your guns! You are the professional here, not them. You do this day in and day out. It’s your business.
If you have to take on a higher price now, then bring a bunch of amendments and get them signed up front, ahead of time.
I hope this tip helps. Good luck and happy listing!
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