Tony and Suzanne Marriott's Phoenix Arizona Real Estate Blog

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Listing Homes for Sale - Part 4 of a 5 Part series

Link to Listing Homes for Sale - Part 1 of a series

Link to Listing Homes for Sale - Part 2 of a series

Link to Listing Homes for Sale - Part 3 of a series

This series focuses on effective and efficient methods of meeting with Sellers who want to sell Phoenix area Homes and Real Estate, determining whether there is a good fit between the Seller and the prospective Listing Broker, and the technology that is available to streamline the process.

List Price Discussion 

So now it's decision time:

  1. Does the Seller believe that the marketing plan offered by the Listing Broker meets their needs?
  2. Is the Seller willing to list the home for sale at a price that is supported by the current market?
  3. Is the Seller agreeable to the professional services fee?

If those three stars are in alignment, you have a great new listing!

So - how does the discussion go?

Mr & Mrs Seller - As I mentioned at the beginning of our discussion, we need to cover three key areas:

  1. First - my marketing plan.  We've just reviewed that and you tell me you believe I can effectively market and sell your home.
  2. Next - We need to discuss List Price. Once we've agreed on that then we can move to the next step, which is:
  3. Professional service fees, activation date of the listing in the MLS, and what needs to take place between now and when the doors open to the public.

Based on the information I provided to you in advance regarding Active, Pending, Sold and Expired comparable properties in the neighborhood, have you a number in mind for the initial List Price?

"Tony - we know that the information you provided shows what appear to be comparable properties have sold for an average of $390,000 - however - there are a couple of pieces of information about our property which make us think the List Price should be at $460,000.  We invested almost $50,000 in backyard hard-scape and landscape, pool and spa.  We know some of the comparable properties had pools and hard-scape, but we believe ours is much nicer.  Also, we need to get $450,000 for the property in order to get what we want out of it when we sell."

So to confirm what you're telling me, you want to List at $460,000 and sell at $450,000 - correct?

"Yes - that's what we need to do."

Remind me - is it "optional" for you to sell the home - or do you have to sell due to the job relocation you mentioned during our initial discussion?

"We need to sell - but we also need to get $450,000"

Mr & Mrs Seller - you know from our discussion on marketing that our efforts will get you the best possible offer for your home - correct?

"Yes"

If the best possible offer turns out to be $400,000 - are you going to decide not to sell?

"Well...we have to sell...so if that's the best offer we wouldn't like it....but we would take it."

Here are my concerns about a list price of $460,000:

  1. That number is $60,000 higher than any home has sold for in the last year in this area
  2. From a technical perspective - pricing it at $460,000 puts it out of the price range the $450,000 buyers are looking at - if you recall we discussed REALTOR.com and other websites where searches are done in price ranges.  $450,000 is one of the cut-off points
  3. By pricing it at that price point you will be helping your competition sell - while your home languishes on the market
  4. It's not just a Buyer and Seller that need to agree on the final price.  Unless it's a cash Buyer who waives the appraisal - and in this market that's extremely unlikely - the Buyer has to "sell" the purchase price to their Lender, who will rely on their Appraiser - and I don't see anything here that would support an appraisal of $450,000 - do you?

"Well...no..."

I understand the time, effort and money you have invested in this house, and I'm sure you've enjoyed living in the property, however - as a real estate professional I have to advise you that the likely sale price for the home will be anywhere from $385,000 to $400,000 - based on the market data available.  You have Active competition priced at $410,000 - and that's been out there 4 months!  How soon do you need the house sold?

"We need it Sold within 90 days"

If there is a comparable property on the market for 120 days at $410,00 - please help me understand why pricing your home higher than that will get your home sold in your time frame.

"Well...it probably wouldn't"

In fact - when we review the Days on Market for the Sold comps, we see a property that was on the market for 36 days before going under contract - and that was priced at $399,000.  I don't see how pricing your property at anything higher than $400,000 will result in a sale in the time frame you want - do you?

"Well....no......"

Based on our discussion - what do you believe from an objective point of view is a List Price that will result in a sale in the time frame you want, at a price that will be supported during the appraisal process?

"Well....$400,000.....but we really want to get more than that"

So - if you price it at $400,000 and the Buyers in the market believe it's worth more, you may get multiple offers.

To meet your goal I agree with you that $400,000 is the appropriate initial List Price - and bear in mind that if we haven't had an acceptable offer within 45 days or 20 showings - whichever is first - I'll be asking you for a Price Adjustment.  Does that sound like a reasonable plan to you?

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The end result of this discussion MUST be full agreement between Seller and Listing Broker regarding what the initial List Price and pricing strategy will be.  If the Seller refuses to list at a price that is reasonable - there is still one more card to play during the next part of the discussion.

The pricing discussion can end one of two ways:

  1. Mr and Mrs Seller - I agree with your pricing strategy and now we'll move on to the next part of our discussion.
  2. Mr and Mrs Seller - I still have concerns with your pricing strategy - however - let's move on to the next part of our discussion and revisit the pricing strategy after that.

The next part in this series will cover the Professional service fees, activation date of the listing in the MLS, and what needs to take place between now and when the doors open to the public, including sample scripts for different scenarios.  Stay tuned!

*** Updated Listing Homes for Sale - Part 5 of a 5 Part series

If you are considering selling a home or real estate in the Phoenix area you owe it to yourself to talk with Haven Express at Keller Williams Realty Professional Partners to determine whether Tony Marriott is the best real estate Broker in the Phoenix and Scottsdale metropolitan area to help you with the sale of your home!

About the Authors - Updated 2018

If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with the BVO Luxury Group @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.

Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!

Tony Marriott - Chief Operating Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Suzanne Marriott - Chief Learning Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Associate Brokers, REALTORS
BVO Luxury Group
Keller Williams Arizona Realty

Comments

Thanks Tony,

The more scrips we learn, the more successful we will be at converting those listing appointments to listings and sold properties.

Posted by Fountain CO Homes (Prudential Professional ) about 12 years ago

Thanks Tony, I read all 4 reports. Great stuff, I'm trying to decide how to get my listing presentation down to one face to face. I have created a survey that I ask them to fill out after phone call. It asks alot of what you do in number 1.

 

Posted by Missy Caulk, Savvy Realtor - Ann Arbor Real Estate (Missy Caulk TEAM) about 12 years ago
Jon - Happy to hear you're finding them helpful!
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago
Dan (Fountain) - Scripts are essential
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago
Missy - Leverage - that's the name of the game
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago
Almost lost this series in a flash flood of Verrado posts! One of our favorite lines for this situation is "Mr, and Mrs. Seller, let me figure out what you'll net if we list your home at $450,000 ... zero, because the market is telling us it simply won't sell at that price."
Posted by John Novak, Henderson, Las Vegas and Summerlin Real Estate (Keller Williams Realty The Marketplace) about 12 years ago
John - I like that!  Have to assess the Seller's personality prior to delivery of that one.
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago

Tony,

I am really enjoying this series.  The scripts are very helpful. 

Thanks,

Fran

Posted by Fran Gatti, Managing Principal Broker - RE/MAX Integrity (RE/MAX Integrity) about 12 years ago

Great questions and dialogs to commit to muscle memory!

 

Posted by Greg & Brian Perry, Working-for-you (Windermere Real Estate N.E.) about 12 years ago
Fran - Happy to hear the scripts are useful!
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago
Greg & Brian - role-play, role-play, role-play until it's second nature...
Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 12 years ago

This is a great article on your blog.  I enjoyed reading it today.

Don Bradbury

Posted by D B, e-PRO, Realtor - Bucks County PA - 610-952-3578 over 11 years ago

Donald - thanks for the comment.

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Enjoyed this post and want to read more - try this one - Peacocks and Pickles for Christmas 2015!  Wishing you a prosperous and Happy New Year!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Enjoyed this post and want to read more - visit our website  - HavenExpress.com - where all your questions about buying and selling residential real estate in Arizona are addressed!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) over 3 years ago

Planning to sell your home in Scottsdale, Arizona?  Give us a call for a free, no obligation, consultation!  Haven Express

Listed, Sold and Closed 100% of listings taken (dozens of them) since June 2011!

Real Estate.  It's What We Do. Best!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 3 years ago

Planning to sell your home in Scottsdale, Arizona?  Give us a call for a free, no obligation, consultation!  Haven Express

Listed, Sold and Closed 100% of listings taken (dozens of them) since June 2011!

Real Estate.  It's What We Do. Best!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 3 years ago

Planning to sell your home in Scottsdale, Arizona?  Give us a call for a free, no obligation, consultation!  Haven Express

Listed, Sold and Closed 100% of listings taken (dozens of them) since June 2011!

Real Estate.  It's What We Do. Best!

Posted by Tony and Suzanne Marriott, Associate Brokers, Serving Scottsdale, Phoenix and Maricopa County AZ (BVO Luxury Group @ Keller Williams Arizona Realty) about 3 years ago

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