The Key to Pricing Properties Right in a Balanced Market
Powerfact: Want to leverage a balanced market and help your sellers get more for their homes? Price the property for where the market is GOING, not where it is.
The good news is we are definitely heading into a more balanced market – one that is fairer for sellers, buyers, and real estate professionals. The not so good news is that a lot of agents are still pricing property like it’s a seller’s market. When talking price strategies with agents, I often like to use a story about when my son was little to illustrate the value of thinking ahead! When my son Michael was little he was on a soccer team. I used to coach these little guys and I noticed that they all used to do what I called the “beehive” – swarm to where the ball was, and ultimately they would miss it, because, of course, it’s a moving target! I taught them to instead see where the ball was headed and meet it there – that way they had a better chance of scoring.
The same is true in pricing real estate. If you price property to where the market IS, you’ll ultimately be forced to ask for price reductions, and you could potentially have a listing sit for a while. Instead, explain to your sellers that the market is in a state of change, and the best strategy to help them get not just a good offer, but potentially multiple offers, is to price the listing where the market is headed. That way they will have a higher than average surge of buyers and a chance for multiple bids.
Watch this to see what I mean:
It’s a great analogy to use when you’re in the Listing Conversation! Power Agents®, you’ll find many tools to help you get properties priced right including this little gem, Competitively Pricing Your Home in the Listing Appointment tab of your Classroom.
Now is definitely the time to review and improve your skills as a listing inventory expert. The more inventory you build now, the stronger your market share will be, and the better able you will be to leverage this market — and any market — for all it is worth. To do that, you should be focused at least three days per week, for at least one hour each of those days on prospecting for new listings.
On recent weekly Monday Power Hour Coaching calls, this has been a big topic of discussion. If you’re chasing buyers or treading water, use that time much more wisely by prospecting for listings.
Head over to the Prospecting tab for our new eGuide, The Top 12 Most Requested Dialogues for Prospecting and Objection Handling. It will help you have a competitive edge as you grow your business.
By the way, did you get a chance to see our recent webinar? How to Leverage the Agent’s Market™ | (The Sweet Spot Between the Seller’s Market and Buyer’s Market)
In it, I taught agents how trends will work in their favor as markets shift.
Watch it on demand here.
If you’re not CURRENTLY a Power Agent, now’s the time to try us for the next 30 days. You’ll have all the tools, training, and coaching you need to handle objections and list like a pro. Your 30 Day Trial gives you total access to every tool we have including letters, dialogues, training tips, webinars on demand, eBooks, and marketing tools.