This section does not include information about short sale pricing. There is an upcoming post about short sales after we get through the listing presentation.
Price – not your pricing presentation, but their preparation for your pricing presentation. A good way to begin this area is with a visual that may induce a bit of a chuckle. This will let your prospect know that you don’t take yourself too seriously, and you do understand where they are coming from concerning their belief of value. Something comparing the idea a value with the tax assessors, the appraisers, and the buyer’s view of value with your own.
Next you should have a page speaking to the dangers of overpricing. You know the drill…
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It will take longer to sell
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You will have fewer showings
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You will receive lower offers
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Your property will help sell other properties
This is a good time to talk about agency relationships again, and that you will be representing them as a seller’s representative, your fiduciary responsibility is to them once you have the signed listing. You also need to talk to them about buyer agency and dual agency. Let them know that a buyers agent has a responsibility to their client to get them the best possible price for your home, where your responsibility is to getting them (the seller) the best possible price for their home.
Also include a page concerning the dangers of listing with the “highest bidder”. This means speaking about something that may come up if they are interviewing other agents. Put it right out front that some agents may come in with an inflated price just to get the listing, knowing full well that within 21-30 days they will ask the seller for a price reduction. This will cause the seller to lose precious marketing time, as the majority of activity on the house should be within the first 2-3 weeks. The “qualified” buyers may not even see their home because they aren’t looking in the higher price range.
Next, talk about the true value of a home.
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What the seller will take
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What the buyer will pay
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What the bank will lend
The three must agree, or the house will not close!
There are five factors that control the price
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Location
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Time
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Terms
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Condition of the property
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The agent you select
They (the seller) control four of these. Point that out to them!
Show statistics with charts and graphs. In the appendix you will find a graph showing Activity VS market time and a Bar Chart showing the average difference between the original list price and the final selling price by length of time on the market. These are examples only, we advise you to do the research in your market for accurate and specific data.
Next, mention your pricing presentation and how you will get more specific with pricing their home at that time. A good visual here is to include a copy of their actual pricing presentation cover page.
Next post… Exposure
