It’s an agent’s responsibility to help their sellers to set a reasonable pricing for their homes. Clients need to trust your judgment and call when it comes to property pricing. The only way to ensure your clients are confident with the pricing you propose to them is to have a good track record of your dealings in the past.
A good real estate agent will take time to conduct a research on how other properties around the area have sold in the past to come up with an estimate property price. A reputed real estate brokerage firm will advise their agents to compare different property values in an area and translate that data to reach a reasonable price. However, it is advisable to understand that properties are personalized assets, meaning there are nuances that you need to look for in a property that may affect the final property value. Check if the homeowner has done any renovations to increase the property value to help you come up with the right asking price.
When you get a price range for a property, you need to give your seller different pricings that will set boundaries on how low or high they can go. For example, if a house is valued at $500,000, you can set different prices between $480,000 and $520,000. The final price will be determined depending on competing properties, market conditions, and time of the year. Here are some of the strategies you can offer your seller to help him or her nail down the final list price and sell the property fast.
Appeal To The “Herd” Mentality
Real estate experts advise that you should always appeal to the mass by listing lowest price for a property. Home buyers don’t want to be the only one eyeing a property. When a property has more than a few interested parties looking to buy, it draws your potential buyers’ curiosity. You can take advantage of the competition to increase your property pricing. Let buyers know that they are not the only ones eyeing the property and that the house will be offered to the highest bidder.
Make The Price Look Attractive In The Real Estate Listings
When listing a house, offer a price range that is reasonably within the property value. Place a price in the listing that will allow buyers looking to buy within a certain price range to check into your property. Buyers understand that even if a property is listed on a certain price, they can always bargain to get to the price they are looking to buy a house. That is why it is important to advice your sellers not to set a price that is way above the property value. Place the offer in the MLS to increase the chances of attracting more potential buyers.
Work Out A Pricing Contingency Plan
It is not unusual for sellers to have high expectations about their property pricing. As a real estate agent, you are able to tell if their expectations are reasonable or not. If your seller’s expectations are way above the reality, it best to let them know but do it in a way that shows them you are ready to support their decisions. Try to work up a contingency plan with your seller in case a house does not go for the desired price. Doing this saves time in case you have to rely on a plan B and helps to set appropriate expectations to avoid unpleasant surprises down the road.