Lots of overpriced listing out there eh?
And if you have a client who needs to sell, this is your strategic advantage.
Let me explain.
If you can establish what fair market value is and get your client on board to list at or near that, you have a high probability of getting it sold while the other listings languish on the market.
Why is this so hard for agents?
- The MLS CMA tool is flawed, leaning too heavily on active (and overpriced) listings.
- Many agents fear losing the listing to a competitor who dangles a higher price.
- Optimism bias makes “tough truths” hard to deliver.
- Courage to be direct with sellers is often missing.
Why are sellers holding out?
- Endowment effect: We all overvalue what we own.
- Loss aversion: Hard to accept real or perceived loss.
- Market myths: The belief that prices always rise.
- Trust gap: Thinking agents lowball to earn a fast commission.
How to Earn Listings at Competitive Prices
Your Listing presentation is the key to your success in real estate. Establishing trust, building respect, delivering key market insights and accurately advising the seller on a pricing and marketing strategy will win you the listing 90% of the time. Pricing isn’t a negotiation, it’s a strategy.
If you are letting the sellers pick their agent based on who gives them the highest price, or the lowest commission, you aren’t doing a great job with your presentation. It might be time to sharpen your skills.
