A few of the latest blogs are excusing taking overpriced listings if the sellers agree in advance to lower the price in let's say two weeks. This sounds good and fair at first, but if you analyze this deeper, you'll realize that even if you lower the price after two weeks into the listing, the damage is done.
An overpriced listing makes the market look unrealistic. But that is not all; we all know that the first two weeks of a listing being on the market are the most critical. It is when other brokers notice that a new lisitng is on the market, it is when a listing shows up on a hotsheet, it is when a sign pops up in a neighborhood, it is when the listing agent launches a marketing campaing... it is when people notice a new home on the market. And if you overprice a home in this critical time, it doesn't really matter that you drop the price later on, because you've wasted precious resources that you won't get back. And to top this off, when you lower the price of a home, buyers start thinking "what is wrong with that house?"...
Use CMA's and pricing startegies so you can show the sellers how you arrived at a certain suggested price and they can't refute it.
Comments(5)