Pricing Listings to Sell and Handling Price Objections From Sellers

Real estate agents don't sell homes, a home priced right does. We are just the facilitator in the process. That's why in this shifting market, it is very important that if you take a listing, that you price it to SELL. Let me repeat that. If you take a listing in this market, you price it to SELL. Otherwise, why have it? Just think of all the work and effort you put in to listings just to have it sit there and languish on the market. Not to mention the money you spend promoting it. That's not to say though you can't capture great buyer leads to help close more sales. But consider if you promote yourself as a great Listing Agent in your farm, how do you think it will look if you have a listing sit and sit and sit for 6 months or more? To me it would show that you can't get a home sold. So my advice is to make sure that you only work with MOTIVATED sellers that have to sell, and price it to SELL.

Now you all say that's great Robert, but what do I do when they fight me on price. Here are some comebacks:

1. Specifically....what makes you feel your home is worth $X? Provided you show them the comps and what the market will bear, this should be easy. Remember, you do not control the market. You only interpret it.
2. Did you add those features for your own benefit and enjoyment or did you add them to sell your house thinking the new buyer would pay more? If they say pay more, then go over the comps again and go over what they can expect to recoup for their investment based upon national statistics.

Price Reductions - If you happen to get a listing that you agree to let the owner's "TEST THE MARKET", then for God's sake, keep these thoughts in mind:

1. Use the price reduction time to prepare the seller for a lower offer.
2. With every price reduction, get an extension of the listing agreement.
3. Ask for price changes every 14-21 days or ten showings, whichever comes first. (Be honest about price)
4. Use the Law of Supply and Demand when presenting for price changes based on the MLS statistics for their area.
5. Always go back to the seller's motivation.
6. Don't chase the market down - tell the seller where the market could be in 4-6 months and price it as if it was 4-6 months out. You will stand out among the competition and get that home in to escrow as it will be a great deal.
7. Don't take too small of a reduction. When you see a sale at a Department Store, don't you typically see at least 10% OFF. Keep that as a goal for you price reductions. I hate to see a measly $5,000. What good is that?
8. Offer extreme customer service.
9. Follow up on all showings for feedback. If you aren't doing this, you are missing out on why that buyer has not made an offer so that your seller will know why their home is not selling.

Other things to consider with all your listing inventory is set a weekly price reduction goal so all listings are reduced every 14-21 days.

Also, rate your listings. Put your listings in monthly order of sales with our without price reductions and sell enough each month to reach your yearly goals.

Finally, don't be afraid to walk away from a Listing. If the seller is not reasonable about their selling price in relation to the market, why have it? You will spend a lot of time, energy, money and effort in trying to sell something that the market will not take. DON'T WASTE YOUR TIME.

Good luck and healthy production.