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Pricing Right is SO Important

by Dan O'Connor

In a past blog post I talked about selling my mom’s house, I wrote…
My mother told me that she wished I wasn’t so direct with her and treated her more like a client than my mom. I told her I wished I was more like this with my clients. While I am very open and honest with my clients, I am not as direct as I have been with my mom. I don’t need to be THAT direct, but sometimes you’re afraid your client doesn’t always want to hear exactly what your’e thinking because it might not be what they want to hear.  
For example- pricing is always a big discussion. Telling a client exactly what you think it’s worth could cost you the listing, but a lot of times that’s the risk you have to take. I am the professional, I am the one in the market every day, and I know what these houses are worth. Just because it’s not what the client thinks it’s worth, doesn’t mean I am wrong. It also doesn’t mean I am “just trying to sell it fast to get paid”. It just so happens that in this market and most markets, the quicker things sell the more money the seller ends up with. Days on Market are a killer…and in today’s market, things have not been this “price sensitive” in a very long time. If you are the slightest bit over priced, you will sit on the market and then you will have to make price reductions to ultimately sell the property for less than you would have if you just priced it right to begin with.
 
On a recent listing we came out with earlier this year, the seller and I had an honest conversation about what to price the house at. I told her you need to price it attractively, because if it’s really a “good deal” in the buyers eyes, it will ultimately lead to more money for you. There are still plenty of buyers out there. If you price things right, it should sell fast and potentially with multiple offers. The seller went with my suggested “attractive price” which was less than she wanted if we only got full price, but I knew we would get at least that price and sell quickly with potential for more… We listed the house and in 5 days we had multiple offers and ended up with an over bid situation where the seller got even more than she was hoping for.
 
In the opposite situation, I had another listing where the owner claimed to need a certain number in order to sell the house. I knew this price was a little high (approximately 5% above what it should be), but the seller didn’t want to list it lower even though I expressed that to them. The property did not sell. We took it off the market and now it’s worth less than it was back when I had it listed. If the seller would have priced it lower to begin with, it would have sold back then and the seller would have ended up with much more than its worth today. In that time, the market has slowed and buyers are even more picky about pricing.
 
Pricing is the most important thing as a seller. Sellers have told me “you just want to sell it fast so you can get paid”. They’re right! I do want to sell it fast because that’s what’s best for you as the seller. That’s my priority when I represent you- what’s best for you…I will keep selling houses with or without you. It’s not about me getting paid, it’s about me doing the right thing for you so that you are happy and you are guided properly and you make the most off this property as you can. This will then enable you to do whatever is next with that money. If I do my job, put the client first, and do the best job I can, then they will get the most out of their property. That’s what will ultimately keep me in business. I wouldn’t still be here if “I just wanted to get paid”. I truly believe doing right by my clients is the only way, and that sometimes means telling them what they don’t want to hear.