Occasionally, we experience the reality of not being able to sold houses. Finding ourselves in this conversation is far from enjoyable. Certain homes, for various reasons, appear to be overlooked despite the overall demand in the market. If you happen to be a listing agent, the responsibility falls on you to provide solutions to your clients.
Tom Ferry recommends conducting research and data collection essential. He strongly advises revisiting the agent’s efforts for the property, starting from the initial listing launch to the videos posted, social media promotions, and feedback from showing agents. The listing agent should gather and carefully analyze all relevant data related to the home.
Once these information have been compiled, the agent can confidently present it to the seller. Show the extensive work you ‘ve put into marketing the property. Simultaneously, the agent can highlight what the current market trends are indicating – that the home, at its current price, is not attracting sufficient interest.
If the home isn’t selling, the price isn’t compelling.Steve Harney
Tip 1: Raise the Price
Option one involves proposing a price increase for the property. But for this to be viable, significant efforts are required to make it truly enticing.
The property must exude a “wow” factor that captivates every potential buyer browsing online or stepping through the front door. This entails thorough cleaning, proper staging, necessary upgrades, crafting an exceptional new listing video, and ultimately relaunching the listing 30 to 45 days later.
While presenting this option to the sellers, it’s important to acknowledge that not many may choose to take this path, as it demands substantial commitment. However, it serves to illustrate the kind of transformation needed if they insist on sticking with an inflated price.
Tip 2: Lower the Price to Create a Bidding War
The second option that Tom Ferry shares is to showcase the agent’s strategic business acumen. This is particularly if the seller initially demanded a higher price.
The approach here is to strategically lower the price, setting it BELOW the most recent comparable properties in the neighborhood, and then launch an uber-aggressive marketing campaign. You can inform the homeowners that you will blitz every agent in town and create a compelling new listing video with a positioning like this: “What’s the most crucial lesson in real estate? To invest in the most affordable home in the finest neighborhood. Ladies and gentlemen, allow me to introduce you to the lowest priced home in [neighborhood].”
By generating significant buzz around this attractively priced property, you’ll incite multiple offers, resulting in a potential bidding war scenario.
So, the choice lies ahead – will you enhance its appeal by dressing it up and creating a stunning new listing video, thereby raising the price? Alternatively, will you lower the price strategically and foster a competitive bidding atmosphere?