Overpriced listings. Many agents refuse to take them on while others confidently welcome them. Working with a seller who is determined to list their home above market value isn’t easy, but there are ways to set everyone up for success. If you are ready for the challenge of selling an overpriced home, follow these guidelines on how to pre-qualify listings, educate sellers, and more.
Educate Sellers on Fair Market Value
Some agents try to entice new clients with promises of sky-high listing prices. This may seem like a good tactic to use if you want to attract new clients, but it’s unethical and will only cause issues down the road.
Instead of trying to wow a seller with an unrealistic price, focus on education. One of the best ways to explain why you think a home should be listed at a certain price is to show sellers recent market statistics and data.
Pull together a report on how many comparable homes are listed in the area, how many sell on average each month and the price range. This will provide a realistic assessment of what it will take to sell the home.
Set Up a Pricing Adjustment Schedule
This tactic can be a lifesaver when trying to sell an overpriced listing. You start by listing the home at the seller’s preferred value and then gradually lower the asking price after a predetermined amount of time or number of showings. If this sounds like a tough conversation to have, here’s a helpful script you can use to explain this strategy to sellers.
Find Value in Updates and Fixes
Some sellers have their heart set on the same price a neighbor received for their home, even if the neighbor’s home was objectively nicer. In these cases, you’ll need to convince the owner to either lower their asking price or update their home.
Educate your sellers on the importance of curb appeal so they understand how landscaping can make or break a deal. It can also be helpful to let sellers know that they don’t always need to pour money into their home to make it more attractive to buyers. Check this to-do list before listing and recommend projects that will increase value.
Remember, agents don’t set prices… sellers do
Get into the right mindset and remind yourself that you work for the seller, and ultimately, pricing is up to them. You can offer suggestions, educate them, and present data, but at the end of the day it’s the homeowner’s decision to make.
You have a fiduciary duty to offer sound advice, but you can’t force someone to take your suggestions. Working with a seller who overvalues their home can be frustrating, which is why many agents avoid overpriced listings. If you don’t think the hassle is worth the commission, it’s perfectly okay to pass on the listing.