There are lots of things that don’t matter when it comes to real estate transactions. Among them are the following:
- How much the seller paid for the property
- Why the seller is moving
- How much the seller wants to net
- What I think the property is worth
- What the seller thinks the property is worth
These last two items are questions the seller will ask and where you let the data do the heavy lifting for you. When meeting with the seller you want to present data that shows the complete picture of the neighborhood. The last thing you want to do is cherry pick which comps you show.
Show All the Comps
Some agents will only show the comps that support their suggested sales price. High price or low price, I believe the seller should see all of the comps because each comp tells a story…a story the seller may need to hear.
The listing appointment is your opportunity to present all of the data to the seller…the good and the not so good. That includes, not only price, but days on market as well. Although you may show the seller all of the properties that are similar to theirs, you will highlight those 3-4 properties that are most like their property. Most sellers will have an idea as to what they want the sales price to look like. Even if they say they don’t…they do, trust me on this.
Educate the Seller
Often times that price is unrealistic and doesn’t align with the most recent sales or market conditions. Help the seller understand what happens to overpriced listings. This is the time to let the data do the heavy lifting. It’s not you saying the price is unrealistic, it’s the data.
By showing the seller pictures of the best comparables, they can see how their property measures up…or not. You’ll want to look at the quality of the renovations, square footage and other property amenities. When reviewing the comps with the seller take great care to tell them how their property is better or not as good as the comp. But keep this in mind, although we look at the comps to see what has sold, they don’t necessarily project what the future holds. A lot depends on the current market conditions.
In the end, the seller needs to understand that they don’t set the price, you don’t set the price, but the market sets the price. Once you arrive at a list price, the market will tell you rather quickly, if you got it right.
Real-Life Real Estate Training – The Training You Need, When You Need It
Have you struggled turning contacts into clients?
Are you working hard, but hardly making any money?
Are you beginning to think you made a bad career choice?
If you answered “yes” to any of these questions you are in the right place!
Sign up for my FREE email course, 5 Things Every New Real Estate Agent Needs to Know to start building your real estate business on a solid foundation. Click here to get started!
Inman News named Candy Miles-Crocker as one of the Top 25 Real Estate coaches in 2016. Candy, “The Real-Life Realtor”, coaches, mentors and trains new and experienced real estate agents to transform their business by mastering her proven systems for success. She is a firm believer in managing expectations and her goal is to elevate the perception of real estate agents among the general public through education so every client has an amazing real estate experience. Candy’s unique training methods have shown agents what it takes to be successful!
Learn more about her training program at www.RLRETraining.com or send her an email at Candy@RLRETraining.com.
If you haven’t done so already, please connect with us on Twitter on Facebook, and LinkedIn.
Let’s Go to Work!
As an active Realtor licensed in four jurisdictions, I approach real estate training from a different perspective. With over 24 years in the real estate business, I teach agents what it’s really like to be a real estate agent.
As an active Realtor licensed in three jurisdictions, I approach real estate training from a different perspective. With over 18 years in the real estate business, I teach agents what it’s really like to be a real estate agent.
