Last week, I wrote about the fundamentals of why buyers buy, and how the brain must perceive good value (consciously or otherwise) to trigger the “let’s write an offer” response.
So, what if a buyer does not perceive good value?
Simple: They focus on a negative. 👎
For example, let’s say your new listing has inferior-quality kitchen cabinets compared to other similar-priced listings in the area. It’s got lots of good stuff going for it too, but the cabinets are one of the negatives.
Of course, every listing has pros and cons. That said, every factor, good and bad, needs to be taken into account when you set the list price. Otherwise, here’s what can happen:
During the “initial flurry” immediately after you list, buyers Sam and Suzy view the property, but they do not perceive that good value is being offered. They focus on the inferior kitchen cabinets and decide they don’t like the home.
Two weeks later, you realize you’ve overpriced the property, and the seller agrees to a $10,000 price reduction. Sam and Suzy notice the price adjustment. Will they now reconsider the property?
Not a chance. They recall, “Oh, that’s the house with the crappy cabinets”.
Sam and Suzy have made up their minds. 🙅♀️
Now, the initial flurry of activity is over, and the showings slow down dramatically. You finally sell the property months later, after two more price reductions. The sellers are not thrilled, and you can be confident they won’t be sending you any referrals.
Pricing it Right From the Start
But what if you had priced the property $10,000 less, to begin with? 🤔
Same scenario: Sam and Suzy view the property shortly after it’s listed. This time they perceive good value. They still notice the kitchen cabinets aren’t great, but now this feels like no big deal, compared to all the positive features being offered. Sam and Suzy agree that they could upgrade the cabinets later.
Because it’s a new listing, they write a strong offer, and an agreement is reached quickly.
Everyone is thrilled, particularly the sellers, who got their home sold quickly, for the highest possible price, and with minimal hassle.
Who’s the hero?
You are. 😀
Why? Because you had the necessary set of skills required to convince your sellers to price their home correctly from the start.
One more sale in the books! But far more important than any single sale, you’re building a raving fan base and a business that thrives on a never-ending stream of referrals.
That’s the foundational theme of the entire Agent Skills Master’s Program. You don’t get referrals by asking; you get them by deserving.
This article was inspired by module #11 – Pricing Psychology – part of the Agent Skills Master’s Program.
In ‘Pricing Psychology,’ I explain step-by-step how to demonstrate the importance of pricing the property correctly from the start, to sell quickly, for more money, and with the least amount of hassle. Clearly show your clients how making smart choices will positively affect their results.