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Price Negotiations
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Price Negotiations
Perhaps there's no more important negotiating circumstance in the life of a real estate agent than price negotiations. Getting the listing is easy if pricing it right isn't a priority. Negotiating a proper and competitive list price can make all the difference. Easy to do? No. Worth doing? Yes. Once you see the tools, strategies, dialogue and concepts included in this department, you will realize that you can implement influence strategies when pricing your listings. Remember: A property properly priced is half sold.
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Price Counseling: Good News or Bad?
It's all in the title. We reveal our perspective by what we call things. For years I've heard agents say, "So we finally got around to talking price." Notice they said 'talking price', like it's an after thought, a casual thing or an imposition. Let's face it, pricing might be the most important topic we ever discuss with a seller. Sure, we want to discuss us getting the listing, but what good is the listing if the price is out of line? . . . keep reading
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Pricing Power Language
The Impact of Using the Right Words: Pricing involves a multitude of factors and influence strategies that include the impact of our word choice. At the risk of overstating the impact of our word choice, let's consider adopting the power language of pricing. See if you're comfortable making the following part of your vocabulary. . . . keep reading
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A Rookie Guide to Price Counseling
If real estate is a new career for you then take a shortcut to success by becoming a competent pricing agent right from the start. Don't let sellers who tend to overprice their property take advantage of your inexperience. . . . keep reading
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Pricing Misconceptions Part 1: Seller Posturing
Seller posturing are misconceptions that are focused outward, as they look to outsiders who play a significant role in a future transaction. Included here are the listing agent, the listing broker, the cooperative agents, the buyers and the buyers' agents. Understand these common misconceptions to help navigate past them. . . . keep reading
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Pricing Misconceptions Part 3: Seller's Rose Colored Glasses
Before you begin marketing your seller's home, do you understand how they see it through their eyes? Almost without exception, sellers wear rose colored glasses when considering their own house and its value. Consider these three perspectives (misconceptions) that sellers typically adopt or are influenced by. . . . keep reading
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Comparison Shopping
Dilemma #1: Sellers think only about their house. They concentrate so heavily on their house that they forget that buyers who see their property will see many others. Sellers need to regain the competitive spirit.
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Activity Peaks Early
Dilemma # 2: Sellers think the interest in their property will continue to increase over time. They see little benefit in pricing right early in the listing term. Solution #2: Help sellers recognize the early peak of activity and the rapid fall off of interest. . . . keep reading
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The Pricing Pyramid
Dilemma #3 Sellers, and their agents, struggle to select one initial list price after reviewing all the information contained and presented in the CMA or Market Analysis. Solution #3 Use the pyramid graphic to allow the sellers to initially think in a 'ranges' of list prices, rather than just one number. . . . keep reading
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Wrong Price Attracts Wrong Buyers
Dilemma #4: Sellers fail to realize that the wrong price attracts the wrong buyers. They fail to recognize that their price will keep some buyers away and disappoint many who come. . . . keep reading
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Two Pricing Strategies
Dilemma #5: Sellers want to price high so they have "negotiating room" with some future buyer who they expect will make a less than full price offer. Solution #5: Present another strategy that might, upon consideration, be more effective than adding on that 'negotiating cushion' (over pricing). . . . keep reading
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The Absorption Rate
Dilemma #6 Sellers think that since they have a great property and it's priced 'right', it will automatically sell quickly. Many times that's just not going to happen. Solution #6 Introduce the concept of 'absorption rates' . . . keep reading
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Who Controls the Marketplace?
Dilemma #8: Sellers think they can control everything in the sale process, including the value of their house. Solution #8: Clarify for sellers, in writing, that the buyers (the market) will ultimately determine their sale price (value). . . . keep reading
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Tri-Level Pricing
Dilemma #9: Sellers, even with the help of a CMA and a good agent, struggle to select ONE INITIAL LIST PRICE. Solution #9: Encourage and enable sellers to complete an easier task initially, namely coming up with three prices, not one. . . . keep reading
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Servicing Worthy Buyers
