We recently published a great blog, 9 Questions Your Real Estate Agent Should be Asking You When Selling Your House. Those 9 questions are essential for any real estate agent to sell any home.
If you’re a real estate agent, make sure to start with the 9 questions. But, what happens after you’ve gone through the 9 questions and sellers still fight you on things like listing price and rebates and credits? Check out 4 ways you can get sellers moving in the right direction.
4-Ways to Move Sellers in the Right Direction
- Use the endowment effect to correctly price the home
Behavioral scientists have discovered something they call the endowment effect. The endowment effect is a bias where individuals place more value on something that they own than on something they don’t own even though market factors show no difference in value.
Home sellers adhere to the endowment effect because they own their home. That’s why many home sellers want to sell their homes above the market price. Real estate agents must convince sellers of the endowment effect, that it exists and that potential buyers are turned off by the bias.
That’s not easy, but because the endowment effect is a real thing, at least real estate agents can point to science to show how sellers are biased.
- Show how rebates and credits have helped your other sellers
If you’ve sold a home before and you offered rebates and credits, show how that led to the sale. Don’t be shy about it. Your personal experience is the best way to convince sellers to offer things like rebates and credits.
If you’ve never offered rebates and credits before on a sale, you should know a peer who has. You can also find something that speaks to the value of rebates and credits. In other industries, rebates and credits are the norm, not the exception. Try to find a great story that shows how rebates and credits led to more sales.
Offering closing-costs credit to potential buyers significantly increases the chances of closing a sale. Make sure sellers know this.
- Help the seller create a story
Your seller will be more inclined to follow your lead on pricing, to move in the right direction, if you help her create a story specific to her home. She’ll want a story to tell potential buyers, anyhow. If you get involved, if you help her create the story, she’ll reward you for it by taking your advice on pricing.
- Use logic
Logic beats most anything. Do a comparative analysis of other homes being sold in your seller’s area. Make sure she understand that the homes being sold in her area are competing with her home. Potential buyers look at everything before purchasing a home but if your seller’s home doesn’t have something that makes it unique from other homes sold in the area, price might make the difference.
Use simple logic to show that the seller should take your lead on pricing.
Moving a seller in the right direction starts with asking the 9 questions. After the 9 questions, real estate agents could still face pushback on pricing. To move sellers in the right direction, real estate agents can follow the 4-steps listed here.