Real estate brokers face many challenges, and none could be more daunting than dealing with an unrealistic seller whose expectations for a selling price fail to mesh with the market. “The truth is, most homeowners have an unrealistic dollar amount that they think their home is worth, and it’s our job to educate them properly,” real estate investor James Vasquez wrote in an article for Inman.com.
Vasquez outlined the minefield agents must navigate to ensure they draw plenty of offers from buyers without lowballing sellers. Transparency is key, as buyers shouldn’t be left pondering how agents came up with a purchase price. Agents must show their work, offering sellers the necessary information.
The above will be easier if an agent has already developed a close rapport with the seller. Without being boastful, agents can share their past accomplishments to help build their credibility: “Be very specific about your knowledge of the hyperlocal area and even relate past clients’ (if nearby) stories and successes,” Vasquez wrote in the article.
Agents should also pose the right questions. Vasquez recommends agents should early on bluntly ask what the clients believe their house is worth, which will later pay dividends: “If you can accurately predict the response to your listing price recommendation, then you can craft a well-prepared rebuttal instead of looking shocked that anyone would disagree with your well-researched analysis,” he wrote.
Returning to transparency, agents should arm themselves with as many facts as possible to support their arguments for price. Show clients expired and withdrawn listings from similar properties in the area if clients continue to act stubborn.
While Vasquez wrote he hasn’t ever seen this strategy work, the last resort would be to take the client to the competition. All these facts help crack lofty expectations, as circumnavigating a client’s pride is a difficult proposition. “It’s much easier to accept that you’re wrong once new information is brought to light,” Vasquez wrote.