Article written and provided by Neil Jenman from Jenman.com.au . To see the original source of this article please click here. https://jenman.com.au/money-cant-buy-you-love/
by Neil Jenman
A common mistake of agents – and the reason they often fail to get the best price for a home – is this: They focus too much on price.
Most agents are prejudiced about price. They are obsessed with how much sellers want for their homes.
Sellers, here’s a hint: Never reveal your lowest price, otherwise it will be the highest you ever get.
Buyers – especially family home buyers – rarely consider money as the main motive for buying a home. Yes, money may limit the amount buyers pay, but the main reason home buyers buy is because they love a home. Agents, however, rarely get this important selling point.
Here is an example. A home-owner has a gorgeous two-storey terrace in the popular inner-Sydney suburb of Darlington. It’s not huge, but it’s quaint. It’s in great condition with two bedrooms, cosy living areas, lovely kitchen, and a garden big enough for a small car (or a medium-sized car if you don’t mind exiting through the sun-roof).
It’s in a quiet street near the University and transport. In minutes you can be in Sydney, at the Opera House, even the airport. Location-wise, this home is perfect.
Thousands of people would love this terrace. It’s what agents call a great ‘starter’ or a lifetime home for a single person, maybe even dinks (double-income-no-kids).
And the price?
A snap at $1.5 million. You can see this home being worth over $2 million one day, easily.
But not according to some agents. They reckon it’s “over-priced” (a favourite phrase of agents who under-work). They (the agents) say it’s worth $1.4 million, maybe $1.3 million.
The owner is saying to the agent, “Just bring prospective buyers through and see what they think.”
The owner is right. Why talk price until someone loves the home? No point at all.
Yet the agents keep saying what agents say to owners: “Drop your price and we will bring buyers.” The owner replies, “Bring buyers and then talk price.”
The owner is right. Forget about the price – for now. Just get buyers – and then, if they fall in love with the home, as many will, you can talk price.
Agents, please understand something – which will help your “vendors” (as you call them): No matter how low the price, nothing will make buyers buy a home they don’t love. And yet, when buyers love a home, almost nothing will stop them buying it. It’s a strange phenomenon, but when they find a home they love, buyers often find the money.
Love is a powerful emotion. People have died for love. Lovers have risked their lives for love. As far back as Helen of Troy, wars have been fought over love.
And yet most agents won’t even show a home on the basis that the buyers may love it.
Instead of saying: “If the owners lower the price, we will bring buyers,” start saying: “If we bring buyers and they fall in love, the buyers may find the money to buy the home.”
When people fall in love, with a person or a property, they do almost anything to buy what they love. Just as they do to be united with a person they love.
The owner of that gorgeous terrace asked his agent to bring more people. The home is vacant, so it is safe in this pandemic. The agent replied, “I have been mentioning your home to every suitable buyer but as soon as I mention $1,500,000, they disappear.”
Well stop mentioning the price! Start focussing on emotion, especially love.
Say to prospective buyers, “I’ve got a lovely two-storey terrace with parking in a quiet street close to everything. I think you’ll like it.”
If the buyers ask the price, the agent can say, “There is no point talking price unless you like it. So, have a look and if you like it, we’ll see if we can figure out how you can buy it.”
Agents have had it too good for too long. They have either forgotten how to sell – or, worse, never learned how to sell.
Plus, by the way many agents behave, they seem to have little life-experience. When it comes to money and love, many agents don’t ‘get it’.
Agents, stop hounding sellers to lower the price so it’s easier to make sales. Do your job. Sellers are paying you a good commission; they expect a good price.
So, forget price – for now – and think about buyers who may love this home.
When people are in love, they do the most surprising things – like finding the money to buy a home they love.
Lennon and McCartney were right, money can’t buy you love.
But agents, love can get a lot more money for your sellers.