Category: 11. Pricing Psychology | Agent Skills

11. Pricing Psychology

The 3 Buyer Types and Why Sellers Need to ‘Price it Right’ from the Start

When I list a property, I always explain to my sellers that every potential buyer fits into one of these three categories: 1. Bargain Hunters – These types will wait until your property has been on the market for some time; then they’ll start lobbing low-ball offers. There’s no need to discuss Bargain Hunters any …

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How to Become the True Area Expert and Have Fun Doing It

This RAM is intended mainly for newer agents or any REALTOR® with the right mindset, including myself. Sometimes, writing this article every two weeks reminds me of what is important, so I’ve already implemented steps to follow my own advice! Have you ever had a buyer client tell you, “We didn’t want to bother you …

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‘Running the Odds’ on Real Estate Pricing

‘Running the Odds’ is a simple technique to help sellers and buyers take some of the mystery out of pricing. Here’s an example where my listing clients and I are trying to determine the best list price (somewhere between $799,000-$825,000). Option 1: Sale Price Odds with $825000 List Price <$800,000 = negligible ~ 0%-1% $800,000-$820,000 …

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Buyer Psychology – The Perception of Value – Part 2

Click here to read Part 1 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, …

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Buyer Psychology – The Perception of Value – Part 1

Why do buyers buy? The reasoning is not much different in real estate compared to anything else. Buyers are comparison shoppers. They review all the available “goods” on the market and then choose the item that gives them all the features they want. And most importantly… The one that is offering the best value. 🤑 …

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