Q: Denise, with our tight inventory and multiple offers, my seller thinks if we price the house really high (20% above my price!) that buyers will flock to it anyway and continue to drive the price up. I have tried to redirect him, but how can I prove that it just won’t sell at that price?
A: This is a question I have been hearing a lot lately. The bottom line is you don’t actually know that it won’t sell at the price the seller wants. But in order to explain to the seller why it is crucial to price the property at the market price, I recommend using my conflict resolution formula and first determine the facts around the situation:
- The fact is that the market for your home is $x, not $y.
- The fact is that agents will advise their buyers what market value is for the properties they are considering. And if it is out of line, the buyers will learn that quickly.
- The fact is that in this market if your home sits waiting for the perfect buyer who will pay top dollar, the number of days the home has been listed will increase and people will begin to wonder what is wrong with your home and why it won’t sell.
- The fact is that if you do get an offer at your price and the buyer needs financing, an appraisal could be a challenge.
Fact fact fact fact fact! You don’t have to say, “the fact is” before every statement – that is just a tool to help you build an agenda in your head, but know your facts, engage with the seller (ask questions like, “What do you think about that?”) and then offer solutions. I recommend going into the meeting with the seller with solutions in mind so you have some clear boundaries and goals. Remember the conflict resolution formula!