Listing Triangle™ - Front Street Brokers | Page 29

is the market price of the home. Often, homeowners will get the most from
their home when there are multiple offers on it, as it forces buyers to pay more
for the home than they were originally hoping to pay.
However, most of the time sellers want to list the home over what our
recommendation is. If we give a range of what we believe the home will sell
for, it’s just human nature to want to be at the top or even above that range. It’s
okay to list at the top of the range, so long as they’re going out of their way to
maximize the Presentation of the home. But it’s important to illustrate that
there is a lot at risk by pushing up too far. For example, we may determine the
market value of a home to be between $300,000–$320,000, and the sellers may
believe it’s worth $340,000–$350,000.
We can tell you countless stories of situations like these where the home
was listed where the sellers wanted to list it, but in the end the home sold
below our estimated range, because once a home sits on the market for awhile,
the offers you receive will be far lower than the ones you could have received
when the home was first listed.
The sellers are often overconfident in their home’s value because they
are emotional attached to it and the outcome. Therefore, they list way too high,
and even if they get an offer on it right away, they are often insulted by it and
reject it quickly. But months later they realize that was a pretty good offer and
they wish they had another one just like it, but they end up selling for far lower
in the end, because the market can be brutal to homes that are on the market
too long. When a buyer comes along, they don’t care if you’ve done two,
three, or even five price drops. They’re going to look at your listing and say,
“Oh, it’s been on the market for 180 days, what is wrong with it?” They don’t
care if you just dropped your price yesterday; they’re going to offer an even
lower price because the property has been on the market for 180 days.
Understanding, respecting, and implementing the principles of Pricing a
home has proven to have great results for our clients.
Mastering the principles of setting PRICE, insuring the greatest
VISIBILITY, and procuring the best PRESENTATION for the home is the
foundation of getting the best outcome for our clients.
The Listing Triangle™
Page 28