It’s your job to help your clients sell their home. But what happens when your sellers have an inflated view of their property’s value? Here are ways to work with them to set a realistic price.
Show the Comps
Pull nearby home sales that compare with your sellers’ property and share them with your clients. Remind them that the only criteria that matters in selling homes is what the market will bear. Even if the house was objectively well built or beautiful, it is only worth what buyers will pay for it. That distinction is a way of acknowledging a home’s intrinsic value and market realities.
The homeowners may have a good reason for setting their price above market value. Recent major renovations, like a new kitchen, could raise the asking price.
However, remind your clients that just because they spent $40,000 on a new kitchen doesn’t mean that makes the home worth $40,000 more. You can point them to sources, such as Remodeling magazine’s Cost vs. Value guide, which shows how renovations can affect resale value.
Focus on the End Goal
You and clients want the same thing: to get the highest realistic price for the home. Reaffirm that goal and reframe the conversation with that end in mind. What is the lowest price that they would be willing to consider that would meet that goal?
Perhaps your clients owe more than the house is worth, and it’s hard for them to accept that they must sell it at a loss. At that point, the goal would be to minimize the loss.
You have a lot more experience selling homes than your clients do. What seems obvious to you may be news to them. A REALTOR® manages not only the transaction but also the people involved. Take the time to get it right.