Reality for Sellers

Here are some excerpts from a recent article by Steve Harney. The basic gist is that sellers in this market should be looking for an agent willing to tell the truth about the price.

The days of quick home sales, selling for top dollar and pricing wars on homes are gone. As such, today’s successful real estate agents know that merely getting the listing isn’t enough; you now have to educate your clients on how to price their home correctly so it can still sell quickly in today’s real estate market.
The challenge for Realtors is the homeowners’ perception of what their home should sell for. As recent as June 2007, a survey by the Boston Consulting Group found that fifty-five percent of American homeowners believe their home is worth more today than it was one year ago. In reality, in many locations, home values have gone down.
Unfortunately, some real estate agents, who see their income decline as the number of home sales go down, are now operating in a state of fear. As a result, when they meet with prospective clients, they may be concerned they won’t get the listing (and thus not get a commission), so they tell clients what they want to hear - namely that their home will sell for top dollar in record time. Then when the house doesn’t sell and the client agrees to lower the price, the client/professional relationship becomes strained. Clients can’t help but feel their agent gave them inaccurate information.
To truly shine as a real estate agent today, you simply need to educate yourself on the realities of the market and then tell each client the truth. Help clients understand where the pricing used to be, where it is today, where it will likely be three months from now, and most importantly, why it is that way. Only then will clients be able to make a realistic pricing decision that will enable you to help get their home sold.
Following are the five pricing considerations you need to educate yourself and your clients on. By taking these points into consideration when pricing listings, you’ll be able to put that “sold” sign on listings faster.
1. Increased Inventory
2. Increased Mortgage Rates
3. Increased Mortgage Restrictions
4. Increased Vacancy Rates
5. Increased Foreclosures
So when you conduct your next listing presentation, be sure to prepare by educating yourself on these five factors, and then explain how these factors impact your clients’ selling decision. Let clients know their options, the realities of the market and what their home will likely sell for given these five considerations. By doing so, you’ll help your clients price their home correctly so it doesn’t sit on the market for years. Even more important, you’ll become known as a trustworthy and reliable Realtor who delivers results, even in a tough market.