OK – this article will probably not make me too popular with some agents. Why? Because I suggest that it is much easier to get vendors to be realistic about their pricing expectations if they are told the truth up-front.
In most professions this would be deemed self evident – but not real estate. Here a culture has grown up of telling prospective vendors inflated prices to ‘buy’ listings, then spending the next few months beating them around the head until they become ‘realistic’.
And the justification? “Everyone else is doing it”. It’s up there with needing to cut commission and pay for vendor advertising among the top three silly things that poor agents do wrongly.
The art of listing a property at the correct (ie: readily saleable) price is to present all the evidence-based facts about comparable sales and the market in a convincing way. The vendor must be persuaded to determine the price themselves based on the evidence; then they won’t fall for another agent’s inflated claim. And you can concentrate on the things that really will make a difference – presentation and promotion.
A correctly priced property will not only sell quickly, but because it capitalises on the period of maximum interest that a new-to-market listing receives, usually sells for more. This is the message a prospective vendor needs to hear. The longer the property is on the market while their expectations are adjusted to reality, the less they will end up getting.
As a bonus, your sales will soar.
Dr Gil Davis is now a university lecturer, but for twenty-five years he was one of Australia’s most successful real estate agents. He wrote the top-selling book Sell for More, packed full of useful tips for agents, which you can purchase on-line through Harper Collins.
Download our free listings iPad app exclusive to RP Data subscribers
The rp.lister iPad application is a pre-listing presentation tool to assist sales agents to engage with potential vendors.
rp.lister helps agents present interactive property content to educate and inform vendors so they can confidently decide on an appropriate listing price for their property.
Guide your vendor through every step of their listing journey and provide all relevant property information and sales data.
- Assist your vendor to understand their property’s value in their current market, in a dynamic and consultative manner.
- Discuss local market conditions with your vendor while displaying integrated Listings and Sales.
- Present up to date, professional market statistics for your vendor’s district.
- Create your presentations in a matter of minutes for last-minute appointments.
- Email a summary report directly to the vendor straight from the app.
“I downloaded the rp.lister app after attending an rpdata seminar and set up my first listing presentation. It is so simple to use – 15 minutes to learn. Too easy! I am hooked. This is the tool I have been looking for.”
Wayne White, LJ Hooker Camden, NSW.
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