The Price Is Right...Or Is It?? Agent Open House Tip

By
Real Estate Agent with Prudential Georgia Realty - Rabun County, Ga.

There is so much information available on the Active Rain blogs.  It's just about mind boggling ( that's boggling - not bloggling).

I've been reading and reading in the hope of finding something I could comment on knowledgeably and perhaps be a bit of help to someone else since I've been learning all sorts of things reading blog after blog after blog.  In fact, I was beginning to get a bit bogged (not blogged) down when I ran across a posting asking why many times there is a such great disparity in the suggested prices given by Realtors who visit open houses.  Now, that's a question for which I have an answer as well as a tip that really works!

The Realtor who hosts the open house and asks the agents who attend to record their best idea of the market value of the property is generally trying to accomplish one of two things. The first is verification of the listed price that was arrived at through careful research of the marketplace and a throughly planned listing presentation that helped the home owner understand how and why the agent arrived at the suggested price.  The second thing the host agent might be looking for is replicated pricing suggestions below the listed price that will help the listing agent convince the homeowner that the listed price is too high.

But how do you know if the prices written on the pieces of paper - many times anonymously - have really been given the appropriate amount of thought and consideration?  Surely none of those agents would make a guestimate based on the SWAG method. ( If you don't know what SWAG is, send me a message and I'll send you the answer.) 

However, there have been plenty of times that I have gasped in shock as I opened each slip of paper left in the basket at the end of the open house and found a suggested price that was as much as 25 percent lower than the actual listed price.  I prefer to believe the agent who turned in that suggested price didn't have a good understanding of the excercise and in that case, it is sometimes wise to fall back on the old school teacher method of throwing out the highest and lowest scores to achieve a more reliable average.

So, are those agents trying to throw off your price or are they simply not educated about the market?  Maybe they're just in a hurry to get their chicken salad and head off to the next open house where they can get dessert.  Who knows?

Here's a tip that can help: Advertise a $100 ( or more - depending on the price range of the property) prize to be won by an attendee of the open house.  That, along with good food, will guarantee your turnout.

Next, prepare slips of paper that look like this:

Name____________________________________________________________________________

Best Contact number or email address__________________________________________________

Property Address__________________________________________________________________

Price at which you believe this property will close________________________________________

Agent whose price is closest to the final closed price on the closing statement (without going over) will receive a $100 prize when the closing takes place.

Ask the agents who come to the open house to fill out the papers.  Knowing that winning the cash prize depends on using the best of their marketplace knowledge makes quite a difference when each agent gives careful consideration to their best idea of the true market value of the property.  This will give you a heightened degree of credibility when discussing with the homeowner that "The Price Is Right!"

If you have prospects who are considering purchasing a home in the mountains for vacations, retirement or simply to get away from it all, please give me a call at 770-480-5161.  I promise to take great care of your prospects and will gladly pay you a referral fee.

Ask me about the Discovery Package for lake properties and for Waterfall at Lake Burton.  Come and spend a day or two in the mountains of Northeast Georgia.  You'll never want to leave!

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Topic:
ActiveRain Community
Location:
Georgia Rabun County Clayton
Tags:
help with pricing
agent open houses
open house tip
proper pricing

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Rainmaker
239,373
Vickie Slade
Colorado Landmark, Realtors - Boulder, CO
Service You Can Trust ~ Someone You Can Depend On

Lynda, great suggestion.  Do you find that by offering the $100 you get much better participation from other agents?

Feb 13, 2009 02:43 AM #1
Rainmaker
811,175
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

That is an interesting twist...  I am still trying to guess on the swag....

Feb 13, 2009 02:47 AM #2
Rainer
18,055
James & Amy Galligan
Keller Williams Real Estate - Stroudsburg, PA

what a cool & interesting idea.... I will have to suggest this to my team & other agents in my office that do Open Houses.... As time goes by, more & more Realtors should start showing up to your Open House & really give you great feedback & price suggestions...

This is so helpful when showing the seller the prices Realtors believe it will sell for(except those silly ones) ..

Thanks so much...

Feb 13, 2009 02:59 AM #3
Anonymous
Ray Spooner

Lynda,

     What a great idea!  What a beautiful area to live!  Though I live in the Columbia Gorge area of Washington now, I grew up in Charlotte and visit family and friends every year or two.  One of my great friends lives in Ellijay.  Last fall, I drove from Charlotte across upstate SC and GA on gorgeous sunny day at the peak of fall color.  The Chatahootchee National Forest, especially the area where Highway 76 crosses Lake Burton, was glorious.  What a special part of our country!

 

Feb 13, 2009 03:27 AM #4
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Rainer
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Lynda Hester

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