BrokerageIndustry News

6 strategies for a realistic asking price

Calculate absorption rates, holding costs to set sellers straight

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

You've done a thorough CMA (comparative market analysis) and you're certain that the sellers will see the truth about where they should price their property. After they review your work they say, "But our house is worth more!" One of the greatest challenges that agents face is getting sellers to be realistic about their asking price. If you're struggling with pricing your listings right, here are six strategies that can help you persuade your sellers to be realistic. 1. Odds of selling (absorption rates) Absorption rates are generally one of the most powerful ways to persuade sellers to be realistic. The calculation is relatively simple. In most areas, your local multiple listing service publishes how many months of inventory are currently on the market. Next, divide "1" by the number of months of inventory. This gives you the percentage of listings that are selling each month. It also tells you the seller's odds of selling in a given month. For exam...