Should we tell the seller the correct listing price?

By
Real Estate Agent with OC Signature Properties

Do you you tell the seller the correct listing price or tell him what he wants to hear?

Do I get the listing overpriced or wait for the next realtor to lose it

by Ron Accornero

?Price reduced

This is always a decision regarding price when we take a listing.  Should I tell the seller what his home will sell for?  In many cases the seller will probably wait for the next realtor to give his presentation.  He heard the home down the street sold for $500,000 and he thinks his home is worth $550,000.  This kind of seller needs to be identified and approached differently.

As realtors we should maintain high ethics and morals and not tell a Seller that a home will sell for a price that we believe it will not sell for.  We should not tell a seller that the price the seller has selected is a great price and will sell in no time at all.  We will probably get the listing if we tell the seller his price is good.

I think a better approach is to show the seller all the comps both active listings and closed sales in the last 3 months and make him very aware of the current market situation Tell him how important it is to price a property correctly.  Show him how the comps you have selected conform to the subject property and the adjustments you have made to make the comp properties equal.  You can then tell the seller that it is up to him to select the selling price and you will do your best to market the property.  Make sure the seller understands where the market is and what is selling.  Another approach might be to take him to active listings on the market and show him what you can buy for his price.

This last approach is more ethical and puts the seller in the position to state the listing price.  If he wants to sell fast he will list it at a reasonable amount.  If he wants to test the market he will list it high and reduce it.  In either case you will walk away with a signed listing in your hand.

 

Posted by

Ron Accornero

Comments (4)

Carlos A. Fernandez
Zephyr Real Estate - San Francisco, CA
Bernal Heights/San Francisco

it's better to be honest and straightforward about the price it would sell at, in the end the client will choose who is best for the job.  Sometimes it could happen that you loose it because the next guy told them what they wanted to hear,,,my strategy sometimes is to give seller a little reality check and let the listing go at his price but if nothing happens ..then we go with my price....give and take ....compromise ....

Jan 12, 2011 11:43 AM
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Its a business decision.  List an overpriced home and waste your time or spend time on a listing you can sell.  Sometimes being the second Realtor is better than being first.

Jan 12, 2011 12:14 PM
Ronald S. Accornero
OC Signature Properties - Villa Park, CA

Sometimes you can't sell an overpriced listing, but if you have the listing you are in control and when the seller wants to reduce and sell your his realtor.

Thanks for your comment

Jan 12, 2011 12:25 PM
Ronald S. Accornero
OC Signature Properties - Villa Park, CA

Carlos:

I agree with you on the straightforward and honesty. That is a good idea about the compromise.

Thanks for your input.

Jan 12, 2011 12:27 PM