Rhonda Childress is an Agent. She was frustrated that a Seller relisted with another Agent after she had worked on it conscientiously for six months. When I spoke to her, she said, “Rich, I just couldn’t get the Sellers to agree to my price. Then they go and list with another Agent at my price and it sells in a week.”
I said, “Rhonda, the problem is you don’t have a price. You have a price recommendation. Only the Seller has a price.” With some Sellers when your price recommendation disagrees with their expectation they get edgy. When you start talking about “your price” the Seller takes it as a competition over whose price is right. That makes your job a lot harder. Instead, you want to create a cooperative not a competitive relationship with your Client.
Consider the following language.
“Mr. and Ms. Seller, my main job is to market your property, to attract qualified Buyers and Agents that have qualified Buyers who will pay you the highest possible price.
Regarding the price, my job is to research all the possible information that affects your price, analyze that information, show it to you and make the best possible pricing recommendation. Then you can choose to take my recommendation or choose a different price. The price is always in your hands not mine. So, I’ll recommend a price based on the facts. At the same time it is up to you to set the initial asking price. It is your decision to adjust the price should that be necessary. I’ll advise you, give you the best information and recommendation possible. The decision on pricing is always completely yours. Does that make sense?
Whether you choose to put the house on the market at the price the market indicates or you choose something higher or lower I will put my entire marketing effort to work and as I said, no one will work harder, smarter or get you more money “
This is simply acknowledging the truth. The Seller has complete control over the price. When you put that responsibility where it belongs, in the Seller’s hands, you have much more control. Yes this can be counter intuitive; it may seem that you are giving up control. As you utilize this approach you will realize the effectiveness.
One note, this approach must accompany a clear and strong plan for marketing the property to get the highest possible price.
Your Value and Pricing Message to the Seller
You always choose the price
You decide whether or not to take an offered price
You decide whether, when, and how much to change or adjust the price
My job is to recommend, do extensive research and apply expertise to determine a price that a qualified Buyer is likely to pay in the current market
My job is to use my tools and skills to market the property and get qualified buyers in the house
My job is to represent you and to negotiate the highest price and best terms for you
My job is to represent you through the myriad of other negotiations and difficulties and ensure that all the parties do their jobs to get the sale closed.
Your Pricing Message to the Seller… Another Version
You say to the seller, “As we talk about price I want you to understand my job when it comes to pricing.
My main job, the thing you really hire me for is to market your house, attract buyers to your house, then to help you negotiate the best price.
Regarding pricing, my job is to research all the possible information that affects your price, analyze that information, show it to you and make the best possible pricing recommendation to you. Then you can choose to take my recommendation or choose a different price.
Bottom line you choose the price, not me. I believe you want me to advise you on price and make a recommendation don’t you? Or have you already made up your mind as to the price you want to ask?
So, I’ll recommend a price based on the facts. At the same time it is up to you to set the initial asking price. The decision on it is completely yours. Does that make sense?
Now whatever price you choose, I am completely confident. There is no question in my mind that between my efforts, the tools, experience and knowledge I bring, along with the support of my company we can get you the highest possible price. We can get you a higher price than any other Real Estate Agent in town.
Whether that highest price is $2,000,000, $2,500,000 or $3,000,000 (Choose prices below at and way above the market value.) we’ll find out when a buyer makes an offer. My job is to get that offer and help you negotiate it to the highest possible number. And, in fact that is what I do best.
The initial asking price is entirely up to you.
In fact, whether you choose to put the house on the market at the price the market indicates or you choose something higher or lower, if we choose to work together, I will put my entire marketing effort to work and as I said, no one will work harder, smarter or get you more money.
Whether you use this specific language or any parts of it, you want to be sure to clearly communicate your recommendation on price. Be sure to make a note of that recommendation on paper in front of them so that later, if the house does not sell, you can make reference to it. No matter how they react they will hear your recommendation and if they choose a higher price you can still proceed, if you choose. Your clear recommendation will serve you well for cooperation with later price reductions.
Rich Levin is a Master Coach and Real Estate Productivity Expert whose focus is teaching Agents to control and grow their measurable results as they achieve personal fulfillment. Take control of your business. Register for your personal 2010 Strategy Session with Rich. Also, Rich conducts free, live, daily 15 minute webinars that starts your day with focus and energy. Register at 1st Fifteen Webinars. Rich is President of Rich Levin’s Success Corps Inc. Contact him at 585-244-2700 or rich@richlevin.com.