Inspiring Offers with Price Adjustments
There is an old saying in real estate: “It’s a beauty contest and a price war, and you have to win both.”
Even though inventory was generally low across our marketplace in early 2018, the market has shifted and this tenet is important to remember. If buyers don’t recognize the value in what is offered, even if there aren’t many from which to choose, they won’t be inclined to make an offer. For serious buyers to recognize value, it is that perfect balance of size, aesthetic appeal, location and price. If that balance is off kilter, it affects the perception of value.
Sometimes sellers need to be convinced to drop the price, or “adjust” as we like to say, to maintain the perceived value of their home in the marketplace. Agents should use data, such as that available from Infosparks, to demonstrate the current trends like list to sale price ratio, months’ supply and price trajectory to offer tangible support for the price decrease you are suggesting. Specific comparable properties in their market are helpful of course, but often the broader picture helps the seller feel that they are not alone and can help them see it is the market and not their listing agent that is telling them to adjust pricing. Remember, there is a sense of pride in their home that can turn into embarrassment for them if it isn’t selling. Facts and figures help them adopt the shift toward a value proposition that will win the day.