In the real estate world, you’re apt to encounter your fair share of difficult clients, especially when it comes to stubborn sellers. In today’s digital world, it’s not uncommon for many homeowners to perform independent research before they move ahead with selling their home. As a result, Realtors commonly encounter clients who believe they know best, discounting the Realtor’s experience and expertise in favor of a few articles that they read while performing a bit of “Googling.” In today’s article from Real Estate Consultant and Realtor Judy Szablak, we’ll explore how to deal with difficult clients who insist on over-pricing their home and how to discuss the topic of real estate price reductions.
When Seeking Price Reductions, Provide Multiple Comps
Providing the homeowner with multiple real estate comps for comparable local properties can go a long way toward helping them to understand what prices are realistic and reasonable for a home of a particular size and condition, located in a particular community.
But even so, some sellers are stubborn and may refuse to admit that their property is overpriced. For these individuals who are resistant to price reductions, it can be a better approach to guide them down a path that will lead them to this conclusion on their own. Encourage the client to perform some research on comparable homes within the same community; they’ll quickly realize that their asking price is unreasonable.
It can also be helpful to highlight other cases where properties were overpriced. This data can show a clear correlation between price (and the appropriateness of that price) and the amount of time a property spends on the market.
When Seeking Price Reductions, Explain the Disadvantages in Terms of Comps
Many “difficult” clients who refuse to see reason concerning the price of their home fail to realize how over-pricing the property places them at a major disadvantage when prospective buyers compare their property to others in the same price bracket.
As every Realtor knows, overpricing a home will place it in an inappropriate price bracket. Explain how their home will pale in comparison to other homes in that particular price range, making it seem like a bad purchase when compared to others at the same price. It can also help to explain how this places the homeowner in a position where their property is rarely viewed by the most likely buyers (who are shopping in a lower price bracket.)
Explain the Difference Between Asking Price and Selling Price
This seems like an obvious point, but many novice real estate agents will be surprised to learn that this simply never occurs to many homeowners. Many just don’t consider the difference between asking price and selling price.
Highlight the fact that while you can place any asking price on a property, it has little impact on the final selling price. The actual selling price is dictated by the home, the economy and other factors, such as the market value in that particular community.
It can also be helpful to explain how when performing comps, it’s important to look at the actual selling price of comparable homes. Some sellers make the mistake of looking at the asking price of comparable homes (which could also be overpriced), when they should actually be focusing on the sale price.
When Seeking Price Reductions, Point Out Your Interests in Selling the Home
In some cases, it can help to highlight the fact that as a Realtor who works on commission, it’s in your best interest to sell the home at the highest possible price. So while you’d love to sell the home at the inflated, not-so-realistic asking price that the seller is insisting upon, there’s a limit to how much a buyer is willing to pay.
For homeowners who are concerned about timeframe, you may also wish to point out that no amount of talent or skill as a sales professional can bring about a sale in a timely manner if the property is overpriced.
Promote the Property at the Current Price
When all else fails, simply move forward and promote the property at the current price. Some Realtors may opt to provide the seller with a written disclaimer that they must sign, indicating that they are making an informed decision to discount your pricing recommendations and as a result, the property may take significantly longer to sell. Sometimes the very act of signing this document can drive the point home to the seller.
Be sure to keep track of all of the marketing and promotion that you do for the property, so you can show the seller that even with showings, open houses and marketing, the home simply isn’t selling at the current asking price.
In time, most sellers will concede and agree to price reductions, but it can take time. Sometimes, emotion and a need for money overpowers reason and common sense. With the most difficult sellers who refuse price reductions, time may be the only thing that will make them realize that their home simply will not sell at the current price.
Grow Your Career With Real Estate Consultant and Realtor Judy Szablak
A career consultant like Judy Szablak can provide you with the insights and recommendations you need to succeed in today’s competitive real estate industry. A consultant will not only offer advice and recommendations, but she will also share her valuable knowledge and expertise on topics such as online marketing for Realtors and social media marketing to get leads, to sales motivation tips and other tips to sell more homes!
If you’re ready to take your career to the next level, turn to real estate professional and consultant Judy Szablak, founder and CEO of Szablak Consulting and Best Agents Online, LLC. With Judy’s guidance and expertise, you’ll take your career to new places, finding success that’s beyond what you believed to be possible!
If you’re a real estate agent who is ready to elevate your sales or if you’re a realty owner or manager who’s seeking a dynamic, expert coach to bring a new element of professionalism to your sales team and your brokerage firm, turn to Szablak Consulting. Call 855.438.5839 or complete the booking form.