Every real estate agent knows that taking an overpriced listing will create a long delay in getting paid a commission. A long marketing period, advertising costs, price reductions, expired listings, etc. On the other hand, sellers all want to get top dollar for their property. Here is a technique you might use to get the listing at market value.
Seller: I know that you feel, based on your comparable sales, that our house isn’t worth as much as we want but, we just feel it’s worth more.
Agent: I would certainly like to sell your property for much more because I’m paid on a percentage of the sales price, however, we have to substantiate the value of the home to the buyer, the buyer’s appraiser, and the buyer’s lender. Is there something that you can think of to help me justify the higher price?
Seller: Well no, but we just want to get more.
Agent: I can understand that.(always agree with the objection if it’s reasonable) From my experience and all of our research, homes that are overpriced do eventually sell but either at a lower price or after a long period of time. Homes that are priced at market value sell within the average marketing time or less. Did you know that the monthly payments that you are making are mostly interest and not adding to your equity?
Seller: Yes, we are aware of that.
Agent: Even though your interest payments are tax deductable, it’s still interest and you will never get that money back. So the longer it takes to sell your home the more money you spend every month that you won’t get back. Does that make sense?
Seller: I see your point.
Agent: So even if we ask a higher price and your home takes 6 or 9 months to sell, and probably at a lower price, that $1,000 a month in interest, that you won’t get back, becomes $6,000 or $9,000 less net worth you will have. Let’s get started right now at market value and save you that $9,000.
Getting a market value listing price will not only help you increase your income but also help you increase your credibility in your marketplace.