3 Mistakes Agents Make When Pricing a Home
No agent wants to end up with an expired listing on their hands. When an investment of time, energy and money doesn’t pay off, it has the potential to negatively affect your client relationship and your business as a whole.
The number one culprit leading to an expired listing is pricing. A home that is priced incorrectly can have a direct impact on the timeliness of a sale, delaying it weeks and even months.
So why is it so easy to price a home incorrectly? There are a few traps even the most experienced agents fall into when it comes to pricing a home. Here are the top three mistakes agents make in this area:
- Appeasing the Seller
A seller is almost always going to want to price their home higher than the market value. It’s a family asset, and they have a major emotional connection to the space! And when sellers actively push back against a suggested price, agents tend to give in and appease the seller. While going with their desired price may calm the seller down in the moment, it could lead to an expired listing down the line.
- Going In Unprepared
As the seller’s agent, you need to know your stuff when meeting with a seller to price their home — and you need the skills to back it up! Many sellers approach the pricing conversation unprepared. They lack market data and tactical skills needed to make the seller feel heard while also selecting an appropriate price. Because of this, agents encounter a long, bumpy road while trying to sell the home.
- Not Focusing Long-term
Some agents adopt a “something is better than nothing” approach to a pricing presentation. An agent who walks into a pricing presentation tends to have one goal — to lock in the listing. So when the seller sees the proposed price and pushes back, it’s tempting for agents to go with the seller’s desired figure to secure the listing. However, this approach can actually cost you the listing later if the wrong price is set and the listing expires.
Pricing is an art! Even veteran agents encounter challenges in this area. It’s essential to dive into real estate training that helps build next-level skills like home pricing, so you can not only secure the listing, but give it the best possible price every time.
For a real estate agent training program that delivers these vital skills, check out The Pathway to Mastery®—Advanced from Buffini & Company. This program is designed for agents who have mastered the fundamentals and are now looking to break through into the level of their career. Sign up for an online course today!