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
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.