Interest rates are creeping upward.
Homes in certain markets are taking longer to sell.
These factors may or may not be impacting your business.
But we know real estate is cyclical, and we want to stay ahead of that curve.
That’s why I’m talking pricing on today’s #TomFerryShow.
Not only how to get sellers to agree to the best price initially…
…but also the perfect script to get those much-needed price reductions.
Why Your Pricing Conversation Shouldn’t Focus Solely on Price
You know it. I know it. Competing solely on price is never a good idea.
There’s always bound to be an agent who comes in and promises a completely unrealistic price to emotionally hook the homeowner into a listing.
That’s why it’s important to demonstrate how you’re different when on a listing presentation.
“Mr. and Mrs. Homeseller, I could line up 1,000 agents out your door, and we’re all likely to give you a price within one or two percent of each other because we’re all looking at the exact same data. That’s why you’re not hiring someone for the price they tell you, but to market your home and expose it to the largest possible number of qualified buyers. So let’s talk about how I’m going to market your home…”
Once you’ve explained your marketing strategy in depth and gotten the homeowners’ buy-in, then come back to pricing.
I encourage you to use my three-pronged strategy as outlined in this script:
“Most agents have one pricing strategy. I believe there’s actually three. You can price your home above the comps, which I call the ‘needle in the haystack’ approach: You’re hoping just the right buyer comes along and falls in love with your home enough to buy it at an above-market price.
You can price it right in line with fair market value. Or…
For my most savvy clients, we price it just below market value to create a bidding war opportunity.
Of those three pricing strategies, which is better for you?”