IF YOUR HOME DOESN’T SELL FAST

by Neil Jenman

Reading Time: Apx 2.5 mins

From the moment a home is listed for sale, most agents have one goal – to persuade the sellers to reduce their price.

That’s unless, of course, they manage to ‘fluke’ a sale at the usually excessive listed price.

The reason most homes are listed for too high a price is because most agents over-quote the value of a home prior to listing that home.

As agents know, if they tell the truth – i.e. if they reveal a home’s real value – they won’t be chosen as the listing agent. In the cutthroat world of real estate, there are no prizes for agents who come second.

It’s list or perish.

So, having given a false expectation of the selling price and having won the rights to sell the home, agents then use the ‘hope method’. They hope someone will appear and offer either the high listed price or close it.

But over-priced homes are not easy to sell. They can languish on the market for weeks, even months. The agent’s method, therefore, is to persuade the sellers that their expected price is too high. When the sellers blame the agent for quoting a high price, the agent will respond by blaming “the market”.

Yes, the agents tell the lie, and use the market as their alibi. “The market this; the market that; this is what the market is telling us; listen to the market.”

And on it goes.

Eventually this ‘market excuse’ works. The sellers lower their expectations and sell for a lower price than their agents initially quoted.

And, in most cases, the homes are under-sold. This is because most agents use a three-step method to make sales.

First, over-quote the sale price to win the listing. Second, condition owners down in price with a plethora of lines (usually blaming “the market). This leads to step three, a sale.

What most sellers may not realise is that regardless of whether a home sells for a high price or a low price, the agents always get a high commission.

The most important point most sellers fail to realise, however, is that many of the lines used by agents to persuade them to lower their price expectations are bunkum.

By being aware of the common conditioning lines, sellers can combat the agent’s conditioning and force the agent to do what they are supposed to do, namely sell the home for the best price.

One of the most persuasive lines used by agents to persuade sellers to reduce their price goes like this: “The best buyers come in the first few weeks so if your home does not sell in that time, you’ll have lost your chance to get the best price.”

Like many manipulative lines that permeate today’s real estate world, this line is only half true.

Yes, it is true to say that the best offers often come in the first few weeks.

But no, it’s not true to say (or even imply) that if your home does not sell in the first few weeks that you’ve lost your chance to get the best price.

It does not have to be downhill all the way if you don’t sell fast.

THE POOL OF BUYERS.

Here is the truth: In every area there are always a certain number of buyers looking for a home. This could be described as the available pool of buyers. When a home is fresh to the market, most of these buyers will become aware of the home. If they reject it – as often happens when the price is too high – it doesn’t mean the right buyer will not appear later.

Let’s say there are 50 buyers in the current buyer pool. In a month, some of these buyers will have bought but other buyers will enter the market.

So, while it is true to say that you may get the highest number of inspections in the first three to four weeks, it is not true to say that you can’t get the highest price at a later date.

If you don’t sell in the first few weeks, do not feel rejected or dejected. Just tell the agent that more buyers are coming on to the market constantly.

Rather than use the method suggested by the agent (reduce your price), you have decided to use another method. Wait for your price.

If you want to turn the tables and condition the agent instead of being conditioned by the agent, let them know that if they can’t sell your home, maybe you need a better agent.

And don’t fall for the “I’ve-made-the-most-sales-in-this-area” pitch. Being a top agent does not mean you get top price. Indeed, the opposite is more often true. Top agents become top agents because they are masters at convincing sellers to “listen to the market”. And drop their prices.

Top sellers, however, make agents listen to them.

Wait it out. If it takes you ten weeks to get another hundred thousand dollars for your home, that’s ten thousand dollars a week. Good money for waiting it out.

As should be done with any strategy, remember to ask yourself the question: What’s the worst that can happen.

If you don’t sell for the price you want – and you refuse to lower your price expectations, you get to keep your home.

If you can live with that outcome, go ahead and wait.

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