Depending on which part of the country you’re working in right now, the housing market could look completely different. Some areas are experiencing significant price corrections, while demand is still sky-high in others. Even on a local level, one neighborhood could have a totally different market from another one just a few blocks away. Given this volatile environment, how should you go about finding the right list price for your clients? The last thing you want to do is end up chasing the market because you listed at too high of a starting price. However, you also don’t want to leave money on the table. That’s why today, I’m sharing three tips to help you set expectations and set the right price for your clients:
1. Future-proof your price. No matter where you’re working, this market is changing every day. That’s why you need to take a look at the data and try to predict where your market is heading. It’s almost guaranteed that the value of your client’s home will change from the time you do your initial comps to the time you close on a deal. To prepare for this, I recommend predicting where you think the home’s value will be in two months as a starting point. From there, you need to communicate with your client why you think this is the best strategy to get them the best price possible.
2. Be kind, loud, and clear with your clients. Your clients are paying you to be an expert for them, not to be their yes man. They may want to hear that you can get them an amazing price way above what their neighbors have listed at, but you need to be honest about where the market is at. Be clear and straightforward about your pricing strategy and explain why it’s the best course of action to sell their home. This will help with difficult pricing conversations further down the road.
3. Be careful who you work with. Some clients just don’t want to hear that the price they want is too high. I recommend not working with these clients; the time you spend chasing their high price is time better spent finding reasonable clients to work with. The only time I would work with sellers who insist on too high of a price is if they’re in a “need to sell” situation. If they need to move, whether due to a new job or something else time-sensitive, they will eventually listen to you. Just make sure they sign an automatic price-reduction agreement before you commit to taking on their home.
If you want to nail your list prices but don’t feel 100% confident in your skills, you need hands-on leadership. Don’t hesitate to call or email me with any questions. I look forward to hearing from you.
