How do you handle a seller who is unrealistic about the price of their home? Maybe they think it’s worth a million dollars higher than what your experience tells you.
You test the market.
There are a couple of ways you can do this.
Online ViewsOnline resources and platforms are an effective and robust way of testing a market. Click To Tweet
My experience tells me that for every 1,000 views online, I should have one person physically through the door. We tell sellers this when they sign the listing agreement. Therefore, if we have 5,000 views for a particular month, we should then have 5 people through the door. If we don’t generate those numbers, that is a sign of the market rejecting our value proposition. We want sellers to be ready for that. And we want to feed that important information to the seller, especially if the house is priced too high.
Online Shopping Carts
Another way to test the market is by observing the digital shopping carts of online real estate commerce platforms. We constantly see a plethora of people who add and save houses to these shopping carts primarily because they want to readily know if the pricing will change. For example, if there are 47 saves to a shopping cart for a particular house, that is 47 people telling us that they’re not going to come and see it because they don’t think it’s in their pricing zone yet.
It’s critically important to explain that to a seller when you’re signing the contract because if you bring it up 30, 60, or 90 days into the listing, they will think that you’re making up the rules of the game as it progresses.
Until next time, make it a great week.