Wouldn’t it be great to close real estate deals faster, easier, and more often? Chairman and CEO of HÔM Sotheby’s International Realty, Mike Shapiro, has found that the key to closing deals in real estate is ensuring that both parties are on the same page. During his recent podcast interview, Mike explained that buyers’ and sellers’ perceptions tend to be very different, which often causes real estate deals to fall apart.
Bridging the gap between buyers and sellers is easier when you learn how their value perceptions differ. Identifying and addressing these differences will help you close deals in most residential real estate markets. In fact, this strategy even helped Mike achieve great success in the luxury real estate market. To hear more about closing real estate deals and working in the luxury market, listen to the podcast below.
How Buyers Approach Real Estate Deals
When it comes to perceptions of property value, buyers’ perceptions tend to be fairly accurate. Because of this, buyers usually approach real estate deals in a reasonable manner. This is even true in the early stages of major market changes. The majority of buyers are constantly reviewing average property prices in their market, which is one reason why overpriced homes tend to sit on the market for months on end. When homes are priced too high in most buyers’ eyes, they receive very little attention and few serious offers.
How Sellers Approach Real Estate Deals
Since sentimental value often influences sellers’ perceptions of market value, asking prices aren’t always reasonable. Also, sellers often approach real estate deals with a take-it-or-leave-it mentality, which can make price negotiation difficult. In fact, it’s not uncommon for a seller to cut off communication with a potential buyer following an offer they view as unreasonable. Even agents representing sellers need to be careful when discussing price reduction.
Close More Real Estate Deals by Focusing on Value Perceptions
When working a real estate deal, you’re managing your client’s most valuable possession: their home. The key to being a successful agent is doing what you can to practice real estate responsibly. In other words, you need to approach each deal with a healthy level of respect, which means you always need to do some research prior to offering an opinion on property pricing.
Whether you’re representing a buyer or a seller, you need to know what the property in question is worth. While your primary responsibility is to your client, maintaining an open, honest line of communication with the other party is important. Ensuring both parties possess an accurate perception of value will make coming to a final agreement on purchase price much easier.
If you want additional information about Mike’s strategies for closing real estate deals or want to hear what it’s like working in the luxury real estate market, be sure to listen to the complete podcast interview with Mike Shapiro.