Know Your Market
What makes a listing compelling in your market?
It isn’t just price because most clients just hear that and assume that you want to reduce the price because you are an agent…
Educate your client with some of the following tips.
Is it an opportunity problem?
In my neighborhood, if a property was built in the 50’s or 60’s a builder is going to come in and scrape the whole thing and build something magnificent.
Those properties are priced sometimes 3-5% above fair market value and still get 5-6 offers!
This also goes for fixer uppers and lots too!
You know those one of a kind properties!
Big shout out to Gary Gold and Mauricio Umansky for selling the Playboy Mansion.
Other unique factors could be the designer, architect, or even the year the property was built.
Turn Key With No Competition
We all know that turn key properties are really compelling especially when there is no competition.
What if there are 5 homes that are exactly the same on the inside and priced the same too?
Something has to be compelling…
Want to try something different?
Take your clients to see where the new homes are being built.
Those companies are spending millions of dollars to win the minds and hearts of the sellers!
That is the competition and they are creating compelling products for the market.
Price trumps everything!
Which brings us to the options for pricing your listings..
3 Options For Pricing
The average agent shows the comps to the seller…
Even though the seller has seen the median sales price and comps, they still want to see that bigger number!
This is because they have this emotional attachment and hallucination about what the market really is…
Remember if it is not compelling it isn’t selling!
Show your customers these 3 pricing options…
Above Fair Market Value – Not Compelling
Talk about pricing above the fair market value, and how having that higher pricing strategy hasn’t worked so far…
The data and the market have showed that, at that price, the home isn’t compelling.
Fair Market Value – Compelling
Pricing at the fair market value is really just going off the comps.
This will make the property more compelling, but there is an even better strategy…
Below Fair Market – Extremely Compelling
What really makes property more compelling?
When the price is extremely compelling, you create a bidding war and feeding frenzy around the property!
Announce a price that is below fair market value to everyone!
I’m issuing you a challenge, if you have a listing that isn’t selling execute on this plan!
Repackage and reposition with this strategy and let me know how it goes in the comments below!