During the first meeting with a client, which very well may be a listing appointment, you want to instill as much trust with a homeowner as possible.
Sellers have fear even in a seller’s market, and you need to make them feel comfortable with you. There are several ways to do this, but most times, they only want to know you’re on their side and not trying to control everything. Make them feel as though selling the home is a partnership because it is.
In good partnerships, everyone gets a say or opinion. If you give seller’s options, they’ll feel more comfortable because they get a choice in what happens.
As the title of this blog foreshadows, giving homeowners pricing options often works best to help homeowners feel comfortable with you, leading to winning more listings.
There are 3 pricing options to present homeowners with, which are...
#1 Below market value
#2 At market value
#3 Above market value
Here’s how to present these options to the sellers. A quick side note, make sure to have plenty of comps ready when giving the 3 options.
Below Market Value
You want to present this pricing strategy as a way to bring a bidding war. Buyers will raise the price by competing with each other, and the sellers will get to choose not only the best price but the offer with the best terms.
The sellers need to be made aware that this isn’t always what happens, but it’s very possible. This pricing strategy is often good for people who need to sell their home quickly.
At Market Value
This is a great time to present the comps you’ve pulled to show what you think the home’s actual market value is. If it is a seller's market, you can present it similarly to the below-market strategy. They very well could get multiple offers with this strategy, too, and sell just as quickly.
Above Market Value
This really isn’t an excellent option for sellers, but you still want them to feel as though they have a choice to choose it. Present this strategy as “pushing” the market, and that while it sometimes does work, it can also cause buyers to think something might be wrong with the house if it doesn’t sell immediately. This is very true for today’s market.
If a seller does end up choosing this option, you should fully support it and let them know you’ll do everything in your power to get that price. You should also try to get the sellers in agreement that if it doesn’t get the showings or offers you’d expect within a specific time frame, then the price needs to be reduced to market value.
You can choose to communicate these pricing strategies however you want, but you need to give seller’s options at the end of the day, so they realize that their relationship with you is a partnership. Give your sellers the confidence to trust you, and you will, without a doubt, win more listings.
