As an agent, having an expired listing on your books is never a good outcome. Not only does this mean that an investment of your time, energy and money hasn’t paid off, it also means that the relationship with your client is at risk of being negatively impacted, your self-confidence might be affected and your business as a whole could be damaged.
The No. 1 cause of an expired listing is incorrect pricing. Even with inventory levels at record lows, an incorrectly-priced home could remain on the market for weeks, even months. Unfortunately, it’s all too easy to price a home incorrectly, and even the most experienced agents can get it wrong if they’re not careful!
Here are the top three pricing mistakes to avoid at all costs:
Appeasing the Seller
Because a home is a family asset that usually involves major emotional attachment, sellers are almost always going to want to price their property higher than the market value. When sellers actively push back against a suggested price, the mistake some agents make is acquiescing for the sake of peace. Appeasing your seller like this might mean that they are placated temporarily, but it could lead to an expired listing down the line.
To price a home correctly, you need two things: the most up-to-date market information available and the expert skills required to confidently guide your sellers in a way that will best meet their ultimate goal. Unfortunately, many agents are often woefully unprepared when it comes to having a pricing conversation with a seller. Not only do they lack current market data, they lack the skills needed to make their seller feel heard while also selecting an appropriate price. Because of these deficiencies in an agent’s skillset, the road to selling a home can be a long and bumpy one.
Not Focusing Long-Term
Some agents have a “something is better than nothing” approach when it comes to a pricing presentation. With their only goal being to lock in the listing, they blindly take a short-term view. If a seller questions or rejects the proposed pricing, they go along with it to secure the business. However, this approach often backfires. If the wrong price is set and the listing expires, the long-term consequences of this decision can be really detrimental.
Pricing is an art. It’s not only new agents who struggle in this area, veteran agents can encounter challenges too. The solution is next-level real estate training that helps to build advanced skills like home pricing. With these skills in place, agents will not only secure listings, they’ll also give them the best possible price every time.
For a real estate training program that delivers these vital skills, check out The Pathway to Mastery®—Advanced from Buffini & Company. This program is designed for agents who have mastered the fundamentals and are now looking to advance to the next level. Once you complete this course, your career will accelerate, your business will thrive and you will become one of the top agents in the industry! Sign up for an online course today!