Don’t lose to competitors who “buy” listings by overpricing

 

It’s a common complaint. Another agent is competing with you for a listing and “buys” the listing by agreeing to list it at a price you know the market will not support. The seller likes the idea of the higher price and either you lose the listing and hope to be agent number two, or you feel trapped into accepting the listing at the higher price. Neither of these options is attractive. So, what’s the solution? Here’s one way to approach it with a script based on a strategy suggested by one of our members…

“I understand that the higher price, which the other agent is suggesting, is attractive to you. However, the question a savvy seller like you will want to ask is whether the other agent is doing what real estate professionals call, “buying the listing.” In other words, does the agent really believe that he or she can sell the home at or near that price, or does the agent plan to just ride the price down, down, down over time?
“This strategy hurts you several ways. The listing quickly becomes identified as overpriced, showing activity drops, and low ball offers come in. The time it takes to sell your house goes way up.
“My recommendation is to price it right from the start. However, if you truly want to try the other agent and the higher price, test the other agent’s commitment to that price by asking if he or she would release the listing to me if at some point the price is reduced to $________, the list price I’m recommending. If the answer is no, that’s a sign that the agent may not believe he or she can sell your home for more that I’m recommending. If I were a seller, that answer would make me uncomfortable”

You might want to end by adding something about your track record in getting homes sold (your days on market and percent of list price statistics for example). Then, ask for action.

“Would you be willing to test the other agent’s commitment to the higher price by asking them to agree in writing to release the listing to me if the price is reduced to $_______?”

 http://blog.luxuryhomemarketing.com/2012/04/dont-lose-to-competitors-who-buy-listings-by-overpricing.html