So you’re ready to hire a new agent and have selected your favorite agent… right up until it’s time to select a price. It’s frustrating! You love the agent’s marketing plan, reputation and results…. Then all of a sudden your new favorite agent wants you to consider a lower price. They should be representing their seller rather than negotiating with them, right?
Here is what you need to know… Top real estate agents are competitive and have a track record (list to sell ratio) to uphold. They really want to sell your home and there is nothing like pricing the property appropriately to get it done. It’s important to keep in mind that an agent only gets paid if the house sells so they are protective of their time. Experienced agents know that accepting an overpriced listing will cost them valuable time and marketing resources generating a net loss for their business.
ALERT: if the top agents you are interviewing are all skeptical about the price of your home and are not following-up it’s a red flag. They are experts in their field and if you are interviewing the right agents they are also likely to be the agents showing buyers in your price range/area. Some homeowners find it valuable to purchase an independent appraisal prior to listing their home for sale.
SOLUTION time... so deciding on a listing price is an adversarial moment in the listing process. The agent knows you want to get the highest price possible for your home and their objective is help you get there, but with the confidence that the house will in fact sell. Agree to cut the price to a specified amount on day ___(fill in the blank) if the house has not sold.
Changing the price is something to revisit at the 30 day mark. In today’s digital world if the house has not sold in 30 days and traffic is dying down it’s probably time for a price cut. In VERY hot markets 2 weeks is appropriate. Don’t wait until the house has been on the market 90 days – 75% of all showings will have occurred by then meaning your audience is much smaller. Cut the price while the listing is fresh. Go ahead and plan with your agent from day zero that you will drop the price to the range you both feel is reasonable by day 30. Properties of a specialized nature or even luxury properties utilize different timeframes for price cuts. Ask your agent what is appropriate.
Still not sure? Call your TopTierAgent representative. We love helping our customers work through problems to ensure a smooth listing and sale of their property. Really... it’s probably the most rewarding part of our job. Happy selling!