{"id":58,"date":"2021-01-05T16:39:00","date_gmt":"2021-01-05T16:39:00","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2021\/01\/05\/the-big-myth-homes-sell-for-a-fixed-price-nope\/"},"modified":"2025-03-13T01:58:21","modified_gmt":"2025-03-13T01:58:21","slug":"the-big-myth-homes-sell-for-a-fixed-price-nope","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2021\/01\/05\/the-big-myth-homes-sell-for-a-fixed-price-nope\/","title":{"rendered":"The Big Myth: Homes Sell For a Fixed Price (Nope!)"},"content":{"rendered":"<p><span style=\"font-size: 14px; color: #07395b;\"><\/span><em><span style=\"font-size: 14px; color: #445b63;\">By asking sellers just one question, you can articulate your value proposition.<\/span><\/em><\/p>\n<p><!--more--><\/p>\n<p style=\"vertical-align: middle;\"><span style=\"font-size: 14px; color: black;\">What do discount brokers, iBuyers, For Sale by Owners (FSBOs), the Justice Department, most sellers and many sales associates have in common? They subscribe to <em>The Big Myth,<\/em> which is they believe homes sell for a <em>fixed price.<\/em> Let\u2019s take a closer look: <\/span><span style=\"font-size: 14px; color: black;\">&nbsp;<\/span><\/p>\n<ul>\n<li style=\"vertical-align: middle; margin-top: 0in; margin-right: 0in; margin-bottom: 4.5pt;\"><strong><span style=\"font-size: 14px; color: black;\"> Discount Brokers: <\/span><\/strong><span style=\"font-size: 14px; color: black;\">We\u2019ve all heard the ads with the soft female voice posing as a recent seller, \u201cI saved $12,000 by selling my home with ABC Discount Brokerage.\u201d Did she sell her house for top dollar? Her greatest expense may be the money she didn\u2019t make. <\/span><\/li>\n<li style=\"vertical-align: middle; margin-top: 0in; margin-right: 0in; margin-bottom: 4.5pt;\"><strong><span style=\"font-size: 14px; color: black;\"> FSBOs: <\/span><\/strong><span style=\"font-size: 14px; color: black;\">FSBOs indicate their No. 1 reason for doing it themselves is to \u201csave the commission.\u201d They assume the house will sell for the same price as with a broker. Big assumption based on <em>The Big Myth<\/em>. <\/span><\/li>\n<li style=\"vertical-align: middle; margin-top: 0in; margin-right: 0in; margin-bottom: 4.5pt;\"><strong><span style=\"font-size: 14px; color: black;\"> The Justice Department: <\/span><\/strong><span style=\"font-size: 14px; color: black;\">The Justice Department clearly does not understand our business as they work to unwind the MLS system of cooperation to \u201csave the consumers on commissions.\u201d Again, they believe commissions are an expense and brokers offer little, if any, value.<\/span><\/li>\n<li style=\"vertical-align: middle; margin-top: 0in; margin-right: 0in; margin-bottom: 4.5pt;\"><strong><span style=\"font-size: 14px; color: black;\"> iBuyers: <\/span><\/strong><span style=\"font-size: 14px; color: black;\">iBuyers promote speed and convenience but their formulas are built on the myth of a fixed price. <\/span><\/li>\n<li style=\"vertical-align: middle; margin-top: 0in; margin-right: 0in; margin-bottom: 4.5pt;\"><strong><span style=\"font-size: 14px; color: black;\"> Sellers: <\/span><\/strong><span style=\"font-size: 14px; color: black;\">A seller might say, \u201cI think I\u2019ll list with my niece. She just got her license and could use the money.\u201d What is the seller\u2019s thought process? First, there is a fixed price at which my house will sell <em>(The Big Myth).<\/em> Second, real estate professionals don\u2019t bring any value to the transaction. Their commission is an expense that I either need to reduce (discount) or direct to my niece. <\/span><\/li>\n<li style=\"vertical-align: middle;\"><strong><span style=\"font-size: 14px; color: black;\"> Sales Associates: <\/span><\/strong><span style=\"font-size: 14px; color: black;\">How many sales associates freeze up when asked to reduce their commission? Do they really know how to bring value to the transaction?<\/span><\/li>\n<\/ul>\n<p style=\"vertical-align: middle;\"><strong><span style=\"font-size: 14px; color: black;\">The Value Clarification Question. <\/span><\/strong><span style=\"font-size: 14px; color: black;\">Ask the seller this question: <\/span><\/p>\n<p style=\"vertical-align: middle; padding-left: 4.5pt;\"><strong><em><span style=\"font-size: 14px; color: black;\">\u201c Do you believe your home will sell for a fixed price, or do you believe there is a range of value based on the marketing and negotiating skills of your real estate professional?\u201d<\/span><\/em><\/strong><\/p>\n<p style=\"vertical-align: middle;\"><span style=\"font-size: 14px; color: black;\">In my experience, most sellers will say, \u201cI guess I didn\u2019t think about that. There is probably a range of value.\u201d Of course, there\u2019s a range of value. Homes sell for wholesale (as-is condition) or retail (move-in ready) and everything in between. There is a range. A proper listing launch with maximum exposure can generate more offers and expand the range of value. A skilled negotiator can expand the range of value as well. <\/span><\/p>\n<p style=\"vertical-align: middle;\"><span style=\"font-size: 14px; color: black;\">After asking the value clarification question, sales associates need to articulate their value proposition. Here\u2019s what it sounds like: <\/span><\/p>\n<p style=\"vertical-align: middle;\"><span style=\"font-size: 14px; color: black;\">\u201cMy job is to help you get the most value as close as possible to the top of the range. There are five ways I do this:<\/span><\/p>\n<ol>\n<li style=\"vertical-align: middle; margin-top: 0in; margin-right: 0in; margin-bottom: 4.5pt;\"><span style=\"font-size: 14px; color: black;\"> We\u2019ll walk through your property together, and I\u2019ll show you ways to enhance the value, so you get top dollar for it. <\/span><\/li>\n<li style=\"vertical-align: middle; margin-top: 0in; margin-right: 0in; margin-bottom: 4.5pt;\"><span style=\"font-size: 14px; color: black;\"> Next, I\u2019ll help you with a pricing strategy\u2014not pricing it too high so you scare buyers away or too low, so you leave money on the table.<\/span><\/li>\n<li style=\"vertical-align: middle; margin-top: 0in; margin-right: 0in; margin-bottom: 4.5pt;\"><span style=\"font-size: 14px; color: black;\"> Our marketing plan is designed to give you maximum exposure, so we attract more buyers and more contracts. The more buyers and contracts you have, the higher your property will sell in the range of value.<\/span><\/li>\n<li style=\"vertical-align: middle; margin-top: 0in; margin-right: 0in; margin-bottom: 4.5pt;\"><span style=\"font-size: 14px; color: black;\"> How important do you believe negotiation is in this market? I\u2019ll help you negotiate the best contract. <\/span><\/li>\n<li style=\"vertical-align: middle;\"><span style=\"font-size: 14px; color: black;\"> Finally, I\u2019m your transaction manager. There are a lot of moving parts in a real estate transaction. My job is to handle those parts, so your contract closes on time with a minimum of uncertainty and surprises.\u201d<\/span>&nbsp;<\/li>\n<\/ol>\n<p style=\"vertical-align: middle;\"><span style=\"font-size: 14px; color: black;\">It\u2019s time for our industry to explode <em>The Big Myth<\/em> and start articulating our value <\/span><span style=\"font-size: 14px; color: black;\">proposition. A seller\u2019s greatest expense is the money they don\u2019t make. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By asking sellers just one question, you can articulate your value proposition.<\/p>\n","protected":false},"author":15802,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[54],"class_list":["post-58","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Big Myth: Homes Sell For a Fixed Price (Nope!)<\/title>\n<meta name=\"description\" content=\"The Big Myth: Homes Sell For a Fixed Price (Nope!)\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/preprod.realtrends.com\/blog\/2021\/01\/05\/the-big-myth-homes-sell-for-a-fixed-price-nope\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Big Myth: Homes Sell For a Fixed Price (Nope!)\" \/>\n<meta property=\"og:description\" content=\"The Big Myth: Homes Sell For a Fixed Price (Nope!)\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preprod.realtrends.com\/blog\/2021\/01\/05\/the-big-myth-homes-sell-for-a-fixed-price-nope\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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