Viewing by month: March 2010

Don’t be the agent that sets an unrealistically high price to land the client

Convincing a potential vendor to give their listing to your agency can be a tricky balancing act.  As a qualified real estate agent, you will have a good idea about what the property is worth, but then so too will the seller, realistic or not.  It is very easy when meeting with a potential vendor to suggest an unrealistically high sales price in order to get the seller’s business.  This is one of the worst things an agent can do, especially when the house doesn’t end up selling.    The old adage ‘Under promise, over deliver’ is as true for our industry as it is for others. Now by ‘under promise’ I don’t mean give the vendor a sale price under what you reasonably suspect it will sell for. Give them a price – range – that is honest and based on your own experience and recent sales/trends.  This sort of honest assessment will manage expectations and generate more business for you in the future. You want to be known as the honest objective agent, not the agent that gives blue sky figures that are never realized. Being the first type of agent and treating your client fairly will eventually led to that client telling ten friends what a good job you did with their sale. Those ten may tell another ten and then over 100 people will know that you are an excellent agent. Think long, not short term.  When it comes to auction time, it really won’t matter what the seller thinks their home is worth, nor what the agent thinks.  It all depends on interested buyers and how much they are willing to pay.  The market will largely determine the price paid for the house.  It is up to you to help the seller understand the dangers of pricing the property too high initially and guide them to a reasonable price based on your expert judgment.   In the instance where a seller does hire the agent who suggests the highest (and quite unrealistic) price – what can be the consequences?  The house might not be sold, or worst still, the seller may get a price which they are supremely unhappy with. Remember the ten friends? It can work in a negative way as well.  An added risk for the seller is the damage of keeping a house on the market for too long and at the wrong price. Not only is this emotionally exhausting for a seller, but it also reflects badly on the property.  No longer a new listing, the value that a buyer chooses to pay may decrease.   The financial loss is also a significant factor.  The money spent on advertising, cleaning, and preparations to make the house ready for sale can often exceed extra mortgage repayments paid.   The key at all stages of the selling process is to reinforce to the seller that you will work passionately to get your client the best price possible. Give the client reasonable pricing points but then always emphasize your determination to see the dwelling sell at the highest pricing point.  People connect with passion. Be fair, reasonable, and expert with your promises and pricing and people will be attracted to your offer and might just tell ten friends about you and CENTURY 21 if it all works out.  For any further information on setting prices or valuing property, please contact CENTURY 21 Australia who will be able to help! 
0 comments | Posted by Reality Bytes - Real Estate Training Blog on 29/03/2010 at 11:17 AM | Categories: