All real estate professionals spend countless hours before a listing presentation getting the appropriate up to date data on the market, including current pendings and sales. We take this pile of statistic and photos to the seller, and after a monologue on how we reached a range price for them to consider, we give them the suggested price.
Today, more often than not, we are either met with a deadpan look, or an immediate vocalization of " we need to start higher and see how it goes."
So we then launch into all the statistical reasons that starting high is not the best idea, as the first few weeks out of the chute are when you get attention from both the buyers and the real estate community. Starting high, may just insure you will spend additional days on the market.
I think we need to take some time and ask our sellers to play somewhat of a game with us. I have found that this strategy is sometimes the turn around from a dead end conversation on pricing.
Without giving all the details, tell your seller to give you a 2 to 3 hour segment of time. Before going to pick up your sellers, make appointments to see as many homes in the price range and area of your potential listing. Hopefully you have seen many of these yourself before this tour. Now with detailed client sheets in hand, pick up your seller(s) and begin the tour. Remind them, that this is a very important part of setting pricing; understanding the competition.
Once on the home tour it is important to point out the similarities and differences to the home they are putting on the market. Obivously, some of the key points would be age, condition, size, and views. This can be a real eye opener to your client. All without you hammering them about pricing. There it is, right in front of them, the homes their potential buyers will be looking on tour at the same time as theirs.
This is all good in itself, but the additional value is in this. It gives you the time to show your real estate expertise in understanding the market, and builds the confidence your seller will gain by your time and energy put into this tour.
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