RealTown's RealTalk

Jim writes: 

Looking for some ideas on language to use when talking with clients to
explain why your recommended price is less than the comparables might
indicate is reasonable.

My Reply:

Without typing out specific sentences for you – use words such as think like a buyer, how a typical buyer is going to look at this, inferior/superior location, inferior/superior layout, floorplan, design, age, located across the street from apartments, condition, etc. 

You could say something to this effect:  “Mr. and Mrs. Seller, although your house has the same number of bedrooms, baths, garage, your house has some unique (or atypical) additions (or features) that the typical buyer will look at and say, ‘Hmm, the house up the street sold for $350,000 and even though it has the same square footage, it wasn’t laid out so that you had to go through the guest bedroom to get to the game room.  I think I would offer the sellers less for this house because of that feature.’”

You can also use words like “unfortunately”, this is the way the market responds to whatever the issue is – busy road, etc.   You can tell them, “You see, buyers are pretty savvy, and they will look at *this particular feature – name it* and think to themselves that if they buy this house now, when they want to sell it later, it will be difficult to sell because of *this particular feature – name it*.”

It you are chicken and don’t feel like you can say these things tactfully, go ahead and list the house at comp prices (which I don’t like to do if it isn’t a good price) and schedule a caravan through the house and give the sellers the honest feedback.  BUT this could backfire because your sellers might think – why didn’t my agent tell me these things in the beginning. 

These are things you would point out to your buyers – at least I would – why is it difficult to talk about with the sellers?  Whenever you say something negative about the house, make sure you end your conversation by saying something positive about the house (hopefully there is something good to say – besides I bet you can’t wait to get rid of this dump!!!)  I had a first-time buyer couple (engaged) earlier this year who looked at a beautiful house owned by a Realtor.  They would have made an offer on the house if I hadn’t started telling them about the major flaw in the kitchen layout.  When you opened the oven door, there was no countertop nearby on which to put whatever you took out of the oven.  You had to turn around and go a couple steps across the kitchen to put it down.  In addition to that problem, the oven door opened right next to the kitchen island – which then blocked anyone from coming into the kitchen while the oven door was open – a serious problem for someone with a toddler on the other side of the oven door.

Remember, this was a young couple, never bought a house before, no kids yet.  I was told by many that I was too honest and should have kept my mouth shut.  IF I did that, then I might have a hard time selling it for my buyers later when they decide to buy their second home.

Just my opinion –

Susan Hutt, e-PRO REALTOR

“The Teacher”

CENTURY 21 Aztec & Associates

Southwest Florida

Cell Phone:  (941) 268-8571

www.susanhutt.com