OpinionAgent

6 reasons ‘testing the market’ is a seriously flawed idea

Sellers need to let the emotional attachment go and focus on the comparables
  • Listings that test the market tend to be overpriced, and because of that, they risk not selling due to buyers (or their agents) knowing better, missing the listing, a poor appraisal or too many days on market.

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

The listing presentation was going well. The sellers loved my approach to property prep. They were pleased with the marketing plan and advertising collateral. Just as I was getting ready to have them sign the listing agreement, they said, "About the price ... we want to 'test the market.'" The concept of "testing the market" has migrated into homeseller’s psyches and attached itself like barnacles on the bottom of a boat. The hardest sell in the universe is not peddling ice to Eskimos or hawking sand to desert nomads -- it’s convincing sellers that their home is not worth more than other comparable homes on the market just because it’s theirs. In their minds, the home is so much more than a building: it’s where bonds were established, memories were created and immeasurable personal value was deeply etched into the fabric of the home with every loving upgrade. Many sellers have a hard time separating their emotional attachment from the logic required to market their...