Opinion on Pricing

Cleo · #**1 Opinion on Pricing** 10-23-2007, 02:59 AM

I would like some of your opinions regarding appraisals of homes. I live in Cyprus where there is no MLS. Every company or agent gets all the commission when they sell a property - there are no splits. The seller can list with as many agents as possible and everyone is on his own. You even see more than one sign on a home, but only one will get paid. You can work out a deal to get exclusivity but that is rare.

Cyprus is having the same problem as the U.S. They have had a price boom for the last few years but now the market is very flat. Sellers are thinking that their homes are worth much more than they can get. Sometimes sellers insist on listing their home for $100,000 over what they are willing to take which is crazy!

As for me, I offer a free price evaluation for sellers. I am not a licensed appraiser, I don’t claim that I am and the sellers know this. I know what price they want me to say which is always inflated and this is where my problem comes from. I know I missed out on a few listings because I try and be honest about the price in order to sell it. Sellers want to hear high prices but if I tell them what they want to hear I will never sell the home since it is so over priced. They don’t seem to realize they are excluding a lot of qualified buyers. What would you do? Would you tell them what they want to hear and inflate the price in order to get the listing (and listing fee that we can charge here) or tell them the lower price that will really sell the home?

Steve Didier · #**2 Re: Opinion on Pricing** 10-23-2007, 10:04 AM

You have to be honest with your sellers - it is a waste of time for you and for them to take overpriced listings. It will just eat up your time that could be better spent looking for truly motivated sellers.

Find sellers who really NEED to sell. Practice handling pricing objections daily and learn how to present the CMA in such a way that it would be illogical for them to price it high.

Also, pre qualify your listing appointments. If you can determine before you go out on the appointment that they have no true time frame in which they need to be sold and no motivation to really sell - don't go on the appointment.

Hope this helps - Good Luck!

David Pylyp · #**3 Re: Opinion on Pricing** 10-23-2007, 03:11 PM

There is a gentleman in Canada Toronto, Clemente Cabillan, who is active with the Philipino Real estate market. It was created as a vehicle for expatriated Phillipinos to sell or enquire about property back home with realistic answers. The solution was to emulate some of the real estate board data that we have here in North America. (Based in Common Law)

This has resulted in other brokerage(s) advertising their listings on his board. Eventually I believe it will become the MLS system of the Phillipines.

So, in solving his own problems of logistics and historic sales values (databasing) the technology is providing a platform for others to join.

Google PHILUSCAN

svrpaul · #**4 Re: Opinion on Pricing** 10-23-2007, 05:38 PM

Even with a MLS, sellers will often listen to what they want to hear and not what they need to hear.

I can't tell you how many times I've had somebody complain about the previous listing agent that did nothing and nobody even came over to view their property --- when the real reason was because the price was severely inflated.

We call it "Buying a Listing" -- anybody that has sold properties for awhile has lost a listing because somebody else "bought the listing".

You have to decide if you want to be the agent that can't sell a property or if you want to be the agent that has the history (reputation) of selling properties.

I don't know about the mentality of people in Cyprus, but in America a lot of people like to blame something/somebody else.

Steve Didier · #**5 Re: Opinion on Pricing** 10-23-2007, 06:57 PM

Quote:

Originally Posted by svrpaul

Even with a MLS, sellers will often listen to what they want to hear and not what they need to hear.

I can't tell you how many times I've had somebody complain about the previous listing agent that did nothing and nobody even came over to view their property --- when the real reason was because the price was severely inflated.

We call it "Buying a Listing" -- anybody that has sold properties for awhile has lost a listing because somebody else "bought the listing".

You have to decide if you want to be the agent that can't sell a property or if you want to be the agent that has the history (reputation) of selling properties.

I don't know about the mentality of people in Cyprus, but in America a lot of people like to blame something/somebody else.

Truer words have never been spoken.

Cleo · #**6 Re: Opinion on Pricing** 10-23-2007, 11:50 PM

Thanks for all the comments. The aim is to sell the homes. At first I think I just wanted to build my inventory, but now I think I do have to qualify and price the homes so I can sell.
As for blaming others, I think that is human nature - however, I see it A LOT over here, more so than in the US even.
Hopefully, I can work towards something like an MLS for Cyprus like Mr. Cabillan is doing in the Phillipines.

Bigtoe · #**7 Re: Opinion on Pricing** 10-24-2007, 06:21 AM

Considering your circumstances, one method would be to take the over priced listing and then work the seller for price reductions. Some agents are very successful with it.

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Real Estate Forums

For our members

Main Sections

IDX Coverage Areas

Spiders Welcome