In a seller's market, the seller feels as though they hold all of the cards. They have read all of the articles about "hot" real estate markets and how receiving multiple offers is common. As a result, when they put their house on the market they are expecting to receive more than one offer.
Set the Right Expectations
Often times the listing agent plays into this mind set. They go into the listing appointment talking about the "hot" market and how so many properties are receiving multiple offers. Some listing agents even tell the seller to price their property below market value to encourage multiple buyers. This sets a false expectation for the seller and only makes the situation worse.
Let the Data Do the Talking
At the listing appointment the agent should let the data do the talking. After taking a tour of the property, taking note of the condition and any repairs that need to be made, the agent should sit down with the seller to review the most recent comps to see which properties are most like the sellers' house. Every seller thinks their house is better than the house that sold around the corner, and therefore their house should command a higher price. This is where the agent gives the seller a dose of reality and help the seller understand the differences between the comp properties and their property.
Just One Good Offer
It may be true that a market is experiencing multiple offers, but not every house receives multiple offers. Plus, not all multiple offers end up going over the list price. If the seller wants to price their property lower than market value to entice multiple offers, the agent must then ask the seller if they would be willing to accept an offer at that price if only one offer is received. If the answer is "no", than they need to discuss a different price and strategy. It is the job of the real estate agent to get the seller to understand that all they really need is one good offer.
Buyer's are Very Savvy
Like sellers, buyers watch neighborhoods very carefully and will not even consider making an offer on a property that is severely overpriced. Often times they won't even look at the property because they feel the seller is being unreasonable. They will wait until the price comes down. The listing agent should help the seller understand that even though it may be a seller's market, they still need to attract the buyers.
- What Happens When You Get a Low Offer?
- 12 Must Do's if You Are the Listing Agent
- Do You Price Hoping for Multiple Offers?
- Top 10 Questions to Ask at Your Open House
- What is Your Seller Looking for in an Offer?
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