Question

You're right, and I think you need to take into account how homes get sold.""

""You see, if we come out of the shoot with your home overpriced all of the agents that show properties will instantly write you off as non motivated sellers ... Can I explain what that means from an agent's perspective?"" (Sure)
""The higher a price is on a property, the less a seller needs to sell it ... at least that's what the agents believe ... purely from their past experience ...
""Now, a non-motivated seller means, that even if you come down in price later, two things will happen.""
""Most agents won't even realize your home has been reduced. Now, you might say, can't we send them a flyer telling them that it's been reduced?""
""Yes, we could send everyone a flyer telling them that the prices has been reduced, but agents get 500 flyers a week and there is a good chance it will go unnoticed.""
""If they see that you had the home priced real high in the beginning, that will tell them that you were kind of unrealistic when we listed the property, meaning that you didn't believe that what I was saying was true ... all agents interpret this as trouble when it comes to getting the deal closed.""
""Do you understand why? If we price it to sell right from the beginning, our odds of getting agents to show it is much higher.""
Top Agent Alternative:
""By that time the buyer for your home will have bought another. Do you want to lose that buyer?"""
What is the main argument presented regarding pricing a home for sale?
A) "By that time the buyer for your home will have bought another. Do you want to lose that buyer?"
B) "If you list it for sale yourself, who will follow up with the three months worth of legal paperwork... you?"
C) "I'd rather turn down 10 offers than never get one... I'll work with you to get the right price for your home."
D) "When you get a loan you pay points and a processing fee. It's the same thing. Isn't it worth $250 to have me and my six assistants working for you?

Answer 1

The main argument presented regarding pricing a home for sale is:

D) "When you get a loan you pay points and a processing fee. It's the same thing. Isn't it worth $250 to have me and my six assistants working for you?"

This argument suggests that the cost of hiring the agent and their team to work on selling the home is comparable to the fees associated with obtaining a loan, emphasizing the value of the agent's services.

Step-by-step explanation:

The primary argument for pricing a home competitively from the start lies in the delicate dance of perception and motivation within the real estate market. The agent underscores that an initially high price tag can brand the sellers as non-motivated, a label that can linger even after subsequent price reductions. In the eyes of agents, an overpriced listing signals a lack of realism and commitment from the seller.

The consequences are twofold: reduced interest from agents, who may dismiss the property, and a potential loss of credibility in negotiationsThe agent stresses the challenge of correcting this perception later, highlighting the ineffectiveness of notifying agents about price reductions through flyers due to information overload. Instead, the recommendation is to set a realistic price from the beginning, increasing the likelihood of agent interest and showings.

The alternative scenario paints a vivid picture: a delayed price adjustment risks losing a prospective buyer who might have already found and purchased another property. Ultimately, the argument asserts that strategic pricing is not merely about numbers but about positioning the seller as motivated and realistic, factors crucial for a successful and timely home sale.