SELL AGAINST YOUR LISTING CLOSE
A sellers primary objectives are:
- Sell their home for maximum price
- In the least possible amount of time
- with minimal or no aggravation (process)
Quite often sellers believe that if they price their home high they will get better offers. It is very common for sellers to say, “well, just have the interested buyer make an offer.” Most agents recognize that buyers aren’t willing to make offers when they believe a home is overpriced because they perceive it is much less likely they will get a good price because the seller is unrealistic.
An effective strategy for agents is to show comparable properties and encourage a buyer to make an offer on the lower priced home by selling it against the higher priced home. If your seller is on the high end of the market, this could be happening to them, especially if similar properties are selling. In many cases, it isn’t even necessary for an agent to show the overpriced property. They can print the listing sheet and then compare the overpriced property to the property they’re encouraging the buyers to purchase. Although this is not a bait and switch, the psychology is similar. When a buyer sees a higher price followed by a much lower price, they usually believe they are getting a real deal. This is also a common marketing strategy used by retailers when they offer 30-50% off original price.
Sharing with your sellers how this strategy can be effectively used with your buyers will help them avoid falling victim to this strategy. This approach is especially beneficial when an agent is able to physically show comparable homes offered at lower prices to their sellers (see seller close #13 – Show Competing Homes Close). It is also helpful to ask the seller to put themselves in the shoes of a buyer.