One of my colleagues recently spoke of losing a listing opportunity to another agent, and when they asked the homeowner what persuaded them to go elsewhere, the answer that was given was the promise of a higher selling price . . . not a lower commission rate. Now, for those of us bound by the laws of gravity, and even more importantly, the laws of supply and demand, the promise of a higher selling price was the equivalent of telling the seller that they could defy the laws of the marketplace.
My colleague was not going to challenge the seller’s decision, and simply thanked them for disclosing the reason for going with the other agent. I, on the other hand, would have been seriously tempted (yes, only TEMPTED) to ask “Is this agent GUARANTEEING you that higher selling price?”, because, let’s face it, talk is cheap. Of course the agent couldn’t guarantee a selling price, but in this case, the disparity between the listed price and the comps was impossible to defend other than to attribute it to an impressive case of sheer guile on the part of the listing agent. The laws of gravity can be very inconvenient at times, however, that doesn’t mean that we can defy them, and the same applies to the housing market. An agent who has prepared a well-crafted Comparative Market Analysis will have one of the best tools for converging on a reasonable expectation of a home’s selling price – – not a guarantee, but a reasonable expectation. Keep in mind that a properly staged home has a much better chance of realizing a higher selling price than one which has not been critically analyzed for eye appeal and flow. Clutter can be costly; presentation wins the day!
Every seller would like their home to be the subject of a bidding war to maximize selling price, and every buyer would like to find a beachfront mansion for the cost of a rural tool shed, however, with the amount of information available today, neither scenario is terribly likely. Keep in mind that both overpricing and underpricing carry risks, so a market supportable price should always be the goal. An overpriced home may be overlooked because its price exceeds similar homes in the area, and an underpriced home invites suspicion that expensive repairs (or eccentric neighbors) may lurk out of sight, even if you’ve had a licensed inspector go over the subject home.
If you want more for your home than other similar offerings, you may be able to get it by stepping up the “WOW” factor. Your real estate sales agent is a professional, and they can provide you with ideas and proven techniques for maximizing the “WOW” factor of your home. More “WOW” factor can translate to higher offers. While a successful real estate transaction is generally viewed as a meeting of minds and wallets, value is still a judgement, not an absolute, and higher perceived value has a higher likelihood of translating into more dollars for the seller.
If I may be of service to you, I invite you to call, text message or e-mail me at your convenience. Have a great summer!