Tips on assisting sellers who are unrealistic about price

Saturday 25th September 2010

As we all know, listing your home for sale can be an extremely emotional event. The process tends to becomes even more emotional when the issue about the selling price of a property is discussed. Below are some tips from Real Estate Excellence to assist salespeople who are confronted with sellers who are unrealistic about price.

• Agents should be very clear and upfront to all sellers that the price they are providing is based on facts and evidence – give the evidence in writing through the CMA or market explanation. (refer to the  PAMD Act (sections 574A to 574D and the PAMD Real Estate Agency Practice Code of Conduct sections 10, 18 and 21 - QLD agents only )

• Advise the clients that it is the agents duty to provide honest and accurate indications of market price of their home as per your legislative requirements

• Advise the client that it is their property and you as their agent will list their property at the price that they instruct

• If the client pushes the property too high, the agents should express their concern and also the possible consequences of these actions

o Such as the property becoming stale, long days on market, scaring people away due to price

• Again, agents should advise their client that the property will be listed at whatever price the client wants them to take to the market. This must be via written instruction to the agent through either the PAMD Form 22a Appointment of Agent (QLD) or another written instruction

• Each week that the property remains on the market, agents should provide both written and verbal feedback to the seller about what the market is saying about the price and property

• If little enquiry, provide evidence as to reasons why such as priced too high and continue to show comparable properties and recommendations for the correct market price

• Any change of price instruction from commencement of listing must be in writing.

It is recommended that QLD sales agents use best practice forms such as consent to receive electronic communication and change of price instructions which are available at www.realestateexcellence.com.au or by contacting Stacey Holt Real Estate Excellence; stacey.holt@realestateexcellence.com.au

QLD Agents - The Property Agents and Motor Dealers Act  can be found at http://www.legislation.qld.gov.au/