‘How To’ Control The Pricing Strategy!

Learning to ‘Control the Pricing Strategy’ is particularly critical for real estate agents who are ‘new’, ‘under-producing’ or currently ‘struggling’ to become 'consistent' listers!

Let's remember: in real estate ‘marketable listings are the name of the game!’ ‘He or she or controls the listing…ultimately controls the sale!’

Most poor listers lose ‘marketable’ listings at the ‘moment-of-truth’...that is, when they begin the pricing strategy discussion during their Marketing (Listing) Presentation!

There are two (2) primary reason this happens: timing and/or poor preparation!

When it comes to timing, NEVER prematurely initiate, or allow the seller to prematurely initiate, the discussion of pricing! In a well-sequenced marketing (listing) presentation consisting of Four (4) Phases, the pricing discussion should be initiated in Phase 4…The Closing Phase!

When it comes to preparation, you can NEVER be ‘over-prepared’!  Here are some proven tips!

1.Preview: If you are not currently a strong lister, always attempt to preview the property you’re attempting to list (as well as the neighborhood) BEFORE crunching a bunch of numbers.

2.‘Comparables’ (‘Comps’): Keep in mind that no two properties are ‘identical!’  You’re looking for properties that are ‘similar though NOT necessarily identical to’ the Subject Property you’re trying to list. When introducing a ‘comp’ use the phrase ‘this is a property that is similar though not necessarily identical to yours!’

3.Adjustments: Keep your ‘adjustments’ to an absolute minimum! Too many adjustments ‘confuse’…and confusion results in ‘delayed decisions’…and ‘delayed decisions’ result in ‘lost listings!’

4.Intentionally Introduce An ‘Unfinished’ Comparative Market Analysis (CMA) To The Seller!  After selecting valid/defendable ‘comps’…and after making your limited ‘adjustments’…pay close attention to what your CMA software tells YOU the ‘range of value’ for the SUBJECT property is ‘based on the information YOU have collected and the adjustments YOU have made.’ Immediately after printing the CMA, ‘white-out’ the suggested ‘range of value’ BEFORE presenting the CMA to the seller!

5.Involve your seller in List Price Determination: Go over the CMA in its entirety with the seller! Explain the ‘comps’ you selected... and why! Explain the adjustments you made... and why! (Be careful to not ‘overvalue’ certain aspects of the property!) Then say the following to the seller as you point to your intentionally ‘unfinished’ CMA: “Based on the information I’ve been able to assemble from the XYZ Realtors association’s Multiple Listing Service, what do YOU FEEL the range of value for your property is?” If the seller defers back to you and asks for YOUR ‘price opinion’ first…don’t get trapped! If you offer YOUR ‘opinion of value’ you are going to have to defend it! Make the seller go first and then ask the seller to defend HIS/HER ‘opinion of value’ saying: ‘Based on the information  I HAVE COLLECTED, ADJUSTED and PRESENTED... what do you fee; the ‘range of value’ should be?’

For more detailed information on this critical subject visit: ifasttrac.com

Recommended Reading: Good To Great…Jim Collins