A common dilemma REALTORS® face is how to address sellers who wants to overprice their homes. I had a client who wanted to price his home $20,000 above market value explaining, "That's so I can negotiate down."
After much thought, I resolved the situation by saying:
"I can appreciate your desire but there are a couple things I don't know if you are aware of.
When selling a TV or a car- your tactics would probably be effective. But, real estate is different for a couple reasons. One, you don't negotiate-you direct me and I am the one who negotiates for you.
Secondly, and most important, is when selling a TV or car, you are trying to impress the general public. In real estate, the general public will see your listing but they are NOT your target market. Your market is other REALTORS® who study the market. They know the value of homes that are selling. That's their job. If they see a home that is over-priced they will either ignore it -- or worse, use your listing to make another one look better. ‘See how much better this one is - and at a lower price than the last one we saw!’
Over-pricing results in agents with multiple buyers not showing a house more than once. “Let's price your home competitively so REALTORS® want to bring their clients and get your home sold quickly."
My client said, "You know, I never thought of that. I can see your point." and we went with the better price. Result: we sold within one week.
Thanks to Doc Reiss, CRS, for another great tip. Doc is a managing broker at Town & Country, in Port Angeles, WA. Doc has been a CRS since 2016.