Archive for September, 2010

What’s in a name?

As I travel around the country teaching, pricing is my most popular class.  My approach to pricing is very different, but more importantly, the new strategies and dialogues are practical and easy to implement.  Just change a word here and there and presto, the seller’s are more realistic.

The word I want to focus on in this blog is “price.”  We all know that the meaning of price is “worth” or “value.”  So, when we talk with a seller at the listing presentation about “price,” the seller believes that the number we come up with is the “worth” or “value” of his/her home.  OUCH!  We cannot begin, especially in today’s market, to predict the worth or value of a home.  Value is established by what a ready, willing and able buyer will pay, a seller will accept (and today, what a lender will approve) at a given time in a given market. 

So, how do we get around implying worth or value to a seller?  Stop using the term “list price.”  The word “position” means “to place among others.”  When we are on a listing presentation, should we be telling the sellers what their home is worth (by establishing a list price), or should we be helping them to “position” their home among the competition? 

“Mr. & Mrs. Seller, our job this evening is to position your home among all of the other homes the buyers have to chose from in your price range.  Let’s set an “initial market position” for your home that will encourage the buyers who see it on the Internet to actually make a personal visit.”