Have you ever had a hard time convincing your sellers that their property is just listed to high? I am sure you have. It seems everyone I talk to has come across a situation where their clients really, really want to sell but because of this reason or that, their home really needs to be priced a little higher then what your CMA report shows, or what the other homes in the neighborhood are listed at.
I recently received some great advice from a friend who said when this happens to him, he will challenge his sellers to an appraisal. That's right a challenge.
He will tell his clients that if they want their house listed for a price higher than what he feels is market value, then they need to get the property appraised. If it comes back at what the sellers thinks the price should be, he will pay for the appraisal and list the property for that amount.
If the property is appraised lower, the client agrees to pay for the appraisal. Usually, he said, he gets the price reduction.
I thought I would try this on a client of mine that I had been trying to get a reduction and she decided on the reduction instead of the appraisal, although I think I would have liked an appraisal just to compare it to my CMA. So she reduced her home $20,000 lower than what we were originally asking. As a result, we have had two showings in the past three days.
I think sometimes our clients feel somewhat insulted when a lower price is suggested for their home or they truly believe their home is worth a certain amount so it can be tricky trying to explain how pricing the home correctly the first time it goes on the market is crucial.
Hopefully this challenge will help in getting the correct or competitive price on the properties we list.
Copyright 2008 By Terrie Leighton