Agents, guide your buyers to understand these 2 types of sellers…
Seller #1 lists their home, receives few showings, no offers and refuses to reduce price.
Seller #2 lists their home, and makes immediate and consistent adjustments to price and condition in order to attract an offer and sell.
Seller #1 represents a challenge. This seller has listed their home but is resistant to adjusting the price despite receiving limited interest. Advising buyers on such listings involves managing expectations – the seller may eventually accept a lower offer, but it’s a risky strategy since they would have already just lowered their price to attract more buyers. It’s essential to communicate that Seller #1’s lack of price flexibility may hinder negotiations, and exploring other options or properties might be in the buyer’s best interest.
Seller #2 exemplifies a motivated seller who understands the importance of pricing and condition in attracting buyers and wants to sell. They’ve clearly shown this with the multiple price reductions- you can get your buyers a great deal, and a smooth transaction. Highlight this to your buyers that Seller #2’s proactive approach creates opportunities for negotiation, potentially leading to a great deal for the buyer. Use this market knowledge to attract buyers and/or to turn your “B” motivation buyers into “A” motivation buyers.
On the flip side, as a listing agent, the distinction between Seller #1 and Seller #2 guides the approach to client management…you want to seek out the Seller #2 and work with such sellers as they are motivated and trust your expert advice. Seller #1 is not motivated, will expect you to do extra marketing, extra open houses, etc. and blame you for the lack of sale while Seller #2 will be grateful for your efforts, listen to you, and adjust to what the market tells them in order to sell.
Understanding and effectively communicating the differences between these two types of sellers is a valuable tool for agents, like yourself. It allows buyer’s agents to guide thier clients towards properties with the potential for favorable deals and helps listing agents prioritize clients who are motivated and receptive to professional advice, ultimately leading to more successful transactions for all parties involved.