Neighborhood Experts Set Strategic Prices

We've had a lot to say about the marketing benefits of being a neighborhood expert. It's a well-established technique for appealing to prospective buyers or sellers. However, a recent discussion with an industry thought leader turned up another unexpected benefit: using neighborhood expertise as the basis for price recommendations and resolving price conflicts with clients.

You've all been there: a seller believes their home is worth significantly more than you know they'll be able to get for it. There are many techniques for resolving this conflict. (Why not share a few of your favorites in the comments section below?) But have you tried helping them see the light with neighborhood information in a consumer-friendly format?

I'm getting a little ahead of myself. Let's back up. What are the factors that influence listing price? Things like:

• Condition of the home
• Size of the lot
• Square footage of the home
• Aesthetic appeal
• Number of bedrooms
• Age of the home
• Quality of materials used in construction/remodels
• Views

But this list is missing what can often be the most important factor in pricing: LOCATION! How desirable is the neighborhood? What are other homes in the neighborhood selling for? What is the overall price trend in the neighborhood?

As a neighborhood expert, you understand how important location can be in pricing. You also understand your neighborhood and know how it will impact the selling price of a home. How can you help your client understand it? You can use listing presentation tools or CMA tools, but those are for the "big picture" – looking at all the factors that impact price. You need to drill down into location details, but you need to do it in a way that will appeal to your seller and be easy for them to wrap their heads around.

Here's one idea: Market Videos. Whenever I start talking about neighborhood experts, I think of this tool. (You might say I'm a Market Videos expert, since I've written about them quite a bit.) For a thorough overview of what Market Videos, has to offer, you can check out my product review. Here's a sample, too:

So you can show a video like this (but for your client's neighborhood) to a seller. Next, explain the impact that the market statistics will have on their home price. Finally, reiterate your listing price recommendation. Then tell us how it went!