PROBLEM:

You’re working with a customer who wants to sell their home as quickly as possible and for the highest possible price. Sound familiar so far? You inform your customer that you think there is worth, let’s say for sake of argument, approximately $390,000.

Initially, your client is fine with your assessment… until another agent, and we’ll call him Joe (no offense to any Joes reading this) from ABC Realtors who confidently informs your customer that he can get them $450,000 for their home.

What do you do?

SOLUTION:

[NOTE: First of all, let’s be clear on something, you got off on the wrong foot right from the start. It’s our philosophy that you never quote price. Instead, you’re better off to thoroughly educate the seller regarding the comparables. Then you can help the seller arrive at a price. Do your best to let them arrive at a number while you’re guiding them in the right direction. Really try avoid saying, “Your home is worth $XXX,XXX.” It can often be the kiss of death at a listing presentation.]

With that said, assuming the error was made, you can respond by telling your customer that ultimately, it’s their home and the asking price should be decided upon ultimately by them and not by you or any other agent. Explain to them agents like Joe who tells people whatever they think they want to hear just to get the listing… especially if another agent already involved. Those agents, like Joe, are more interested in getting another listing than your well-being as a customer

Remind them that before deciding on a final asking price to please give some thought to the consequences of over pricing their home.

The consequences of that homes initially priced over market value is that it will often sell for under market value in the end. When a home is overpriced, it will not attract buyers and will develop a reputation for being overpriced. Once a home has a bad reputation, the seller often has to reduce the price to under market value to build new excitement and to attract buyers. Overpriced homes, more often than not, sell for much less than homes priced correctly.

Go over the comparables again with them let them determine the correct value of their home based on what buyers have been willing to pay for comparable properties.

Ultimately, you’ll show that you care about them and that you want them to receive the absolute best possible price for their house without having to have any price reductions.

Joe, on the other hand, obviously cares more about getting the listing than he cares about a customer’s well-being.

“Is Joe from ABC Realtors what you really want in an agent?” you will triumphantly ask them, while sending Joe and his poor customer service on down the road.

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