Q: Often I meet with sellers who have inflated ideas about their home value, primarily because of “upgrades” they perceive to be high-value. How do I reason with them?
A: First, make absolutely sure you’re willing to stand behind the price you’ve proposed. If you’re confident that it’s priced right, try using this response (adjusted for the details of your prospective client):
“I absolutely understand you want the maximum value for your home. My job is to do everything in my power to secure the best closing price possible. However, I have to be honest and tell you that I can only list a house with a price I can defend in the current market.
While your recent cosmetic upgrades add considerable value in your estimation, they only do so if the buyer feels the same way. You may love your sleek, modern cabinets in the kitchen, but to some buyers they might see them as cold and want to have them replaced. So you see, in that case, they’re a drag on price.
I’m happy to walk you through the step-by-step process I used to arrive at this price for your home, and I’m confident it’s optimally placed in this market. I’ll have to defend this price against the buyers’ agent as well, and I want to convince them to convince their client it’s fair to both parties.”
Remember to express that the sweet spot for a new listing on the market is the first two to three weeks, and it won’t help so much to rapidly reduce the inflated price when reality sets in.
Also: If the client persists with unrealistic pricing, ask yourself if it’s worth it. Be polite, but find the resolve to decline the listing if you feel it will languish on the market. Your refusal to list at that price might just be enough to sway their opinion on the spot.
