When it comes to pricing their home, sellers have three things in mind:
1. What they paid for it.
2. What they owe on it.
3. What they think they should get for it.
As you know, winning a listing and successfully selling a home depends heavily on pricing. However, the disconnect between the three things sellers have in mind and the reality of the situation can be a sticky conversation to negotiate.
When your assessment of a home’s market value and the seller’s differ widely, it’s absolutely crucial that you communicate the rationale behind your pricing model. Don’t take your seller’s unfamiliarity with the subject for granted; they simply may not know all of the factors you’ve considered.
Explain, in detail, how each of the following contributed to your assessment:
1. The use of comps.
2. Recent changes in supply & demand which would influence those comps.
3. The seller’s urgency / timeline to sell. (Must relocate? Before school year?)
4. Pricing reductions on homes in MLS. Show the story of overpriced listing; reductions, time on market, etc.
5. Home condition.
Even if you are on the same page as your seller regarding price, it pays to articulate your process as a professional. It builds confidence with your seller, helps reduce conflict, and manages expectations.
