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Overpricing Cures for Anxious Sellers

| Feb 16, 2017

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.



DocReiss

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.