Are You Listening?

As a trusted advisor, your clients expect you to understand market conditions, inventory levels, changes in the local economy and anything else that could affect the value of their investment. Sometimes, because of our expertise, we think we know what is best for our clients. We either don’t listen carefully to what they want, or perhaps what they want is not what we think is best for them.

Recently, in one of my pricing strategies classes, I gave the example of a couple getting divorced and wanting to sell their house quickly. I recommended that to meet that objective, they should price aggressively to get ahead of the competition. A veteran agent challenged me, saying it wasn’t in the clients’ best interests to adopt an aggressive pricing strategy because his job was to get them as much money as possible. I’m always up for a good debate, so I offered to roleplay the scenario with him; he was the seller and I was the agent. I explained that my market analysis showed the market value of his house was $450,000. Based on my research of his price range and location, it should take approximately 90 days to sell. Since he wanted to move quickly than that, I suggested lowering the price slightly to position his house ahead of all competing listings to attract more attention. He argued that if I was a good agent, I should be able to sell his house quickly without lowing the price. I explained that the market dictates price, not me, based on current inventory. Buyers are always drawn to listings that offer the most for the least. We can never guarantee it, but often adopting an aggressive price will attract many interested buyers, multiple offers and we may see the house selling above market value. I reconfirmed that to achieve his objective of a quick sale, pricing was critical.

The agent took a very strong position on pricing the house at market value to maximize the proceeds from the sale. In his heart, his job was to get the seller the highest price. But, in my opinion, that is not his job. His job is to get the seller what the seller wants: a quick sale at a fair price. Could the agent get the seller more money? Yes, if they were willing to wait it out. Would that make the seller happy? No, it would only prolong the sale.

At the end of the day, if you want happy clients, then get them what they want.

Advise them on what you think will benefit them the most, but ultimately, it is their decision. They are adults. It is up to them to decide what is best for them. Never impose your values on your clients. At the end of the day, the client wants what the client wants. It’s your job to get it for them.

Chris Leader
President
Leader’s Edge Training