But if it was me, I would tell them I think its THIS price, they think its THAT price, I'm confident about my price, but they are the owners and at the end of the day are the ones to set the list price. I would agree to set their list price, but maybe with predetermined dates to lower the asking price if no offers come in.
If you think they are too difficult, it could be a waste of time and you might consider giving the listing to another agent (possibly for a commission).
But to answer the original question, you donâ€™t â€œtellâ€ them how their home should be priced, you show them other local sales, educate them about the market, and help them to come their own conclusion. Most owners think their home is â€œuniqueâ€, if it truly is unique, like itâ€™s a log cabin, then I would decide for myself if it was worth it to me to gamble that another log cabin lover was going to come along, plus want to over pay.
Many of the homes I see are â€œuniqueâ€ for reasons that may cause trouble down the line, like a fully finished and heated basement that doesnâ€™t have c.o.s and never will because it doesnâ€™t meet code. Some are just unfinished, quirky or otherwise unusual.
What is unique about your listings?
Our agent gave up after 90 days trying to lead us about 20k lower. The only objection to the house was always the spiral staircase. Between the spiral staircase, us not wanting to drop our price 10%, and other factors that there is no need in going into at this time, he dropped us cold while we were away on vacation. We went FSBO and sold without having to drop that 10%. We also received a backup offer at even a higher price, but the buyers had agent representation. Sorry listing agents. You're not always right when dealing with unique properties.
Another alternative to firing the client is to compromise. Agree to let your client list the property at his/her target price for 30 days, and have him/her to pay out of pocket for all of the marketing materials. Assuming that property hasn't sold in 30 days, then that seller agrees to let you list the property at its market value--this time with you paying for the marketing materials.
In addition, if you have a brokers tour in your area, have paper and pen available for the agents and ask them to write down their opinion of price (no names) after they view the home. Then you can give this feedback to your sellers.
You can also customize your grid on MLS to show clients the Original List Price, New Price, date of Price Reduction and date home went under contract- showing this correlation (you can even put it into Excel and graph the results ) This may help focus them on the importance of pricing their home correctly from the start. I also keep both on line and print articles regarding what is happening in the local real estate market.
You need to decide if its worth it to take an overpriced listing. If they aren't realistic in price, or they are not really motivated to sell, they will be forever chasing the market.
Don's advise is spot on! If you don't want to seem like the bad guy, you could always tell them that when a seller wants to price their home more than 5%, 10% (or whatever number works for you) over the recommended value that you need to get your managers approval. Then tell them that the manager doesn't usually give approval because they are marketing a home priced over what the current market will support and they house will not sell.
Go over your market analysis with the sellers, in detail, showing both sold and active properties. Also take the time to show them homes that have expired unsold.
If they won't list at a price that will sell in the current market, then they are listings that you may decide not to take. You're not loosing them as a client, but rather making a business decision to not take a listing at an unsaleable price.
I turn down many listings if the sellers will not list at a price that will sell the home. It's a part of my business - I only make money when homes sell, so I cannot afford to invest the time and money needed to market a home if it is not saleable.