Is Your Seller Pushing for a Listing Price You Consider Unrealistic?

Thanks to recent upswings in the housing market, a common argument in favor of higher home prices is "the market is back." While today's market is improving, how much "more" is realistic? And how do you rein-in unrealistic homeowners in your effort to set a real estate selling price?

A delicate balance

Your goal must be to earn top dollar for sellers without overpricing listings which can result in appraisal issues down the road. And you must be able to do this without losing the listing to another agent in the habit of overpromising. A tough road to travel indeed!

Follow these steps when setting a real estate selling price with unrealistic clients:

Do your homework.

Before you arrive at the listing appointment, know what price the seller is expecting to prepare your strategy. If it's unrealistic, how did they come up with it? (It's often either ignorance or arrogance.)

Know your numbers.

Knowledge = confidence. Ignorance = fear. Stay on top of local numbers and ditch emotional, fear-based reactions in favor of factual knowledge so sellers will both see the light and have confidence in you!

Stay on top of market/micromarket prices.

What are the facts?

• Average days on the market
• Neighborhood list-to-sell price ratios
• Competition
• What's not in the MLS – new construction, FSBOs, pocket listings

Get pending listing 4-1-1.

Pricing intel from these agents could give you a competitive advantage over other area listings when setting the price.

Go armed with a net sheet.

Using net sheet programs, your title/escrow agent, or your own, compile a net sheet based on a HUD statement: priced low to sell immediately or high to test the market. Ask clients, "What time frame works for you?"

To view the original article, visit the Properties Online blog.