What to say to sellers about pricing: The goal here isn’t to tell sellers their home is worth the highest price possible. It’s to tell them the truth. Ben Kinney’s Pricing
Script To the seller:
“I’d like to share a strategy that allows both you and me to figure out how to price the property because I need to sell the property three times.
First- I have to sell it once to an agent so they’ll show it to their buyers, because 86% of sellers are represented by real estate agents.
Second- I have to sell it to the buyer to get them to write an offer.
Third- I need to sell it to the bank and the bank’s appraisers to get them to give a loan on the property.
"Since it has to be sold so many times to so many people, you have to use the same data that all those people use when getting a home price. And the appraisers, the banks, the agents, and the buyers use active home listings, pending home listings, sold home listings. This is why we developed the ‘5-5-5’ that allows us to accurately price a property by picking out 5 comparable active properties, 5 comparable pending properties, and 5 comparable sold properties.
"These properties together create a bracket. The bracket is the highest price you’d consider selling your home for and how many days on market that that will take.
"You might be able to price your property 5% higher, but it could then take you a year to do it. Or, the lowest possible price for your home might sell in a day. We need to pick where in the range you’d like your home sold. Does this sound like a good way to price your home?”
By using the 5-5-5 strategy, you use the data to tell the price. That takes the emotion out of the equation and keeps potential sellers from being offended. With 5-5-5, you’re using the same method as successful mega-agent Ben Kinney. This will get you more offers and ultimately allow you to sell more properties.