It’s the ultimate love-hate relationship. Almost every time I’m talking to agents about pricing, the “Z” word comes up and as if this was orchestrated… eyes roll.
BUT…there’s that lone wolf in the crowd who says something like, “I’ve made a lot of money from them.” Interestingly, that does absolutely nothing to stop the naysayers; the hate talk continues.
And I get it. On-line estimators present problems for real estate agents. Buyers and sellers are using the information provided by these websites to make critical financial decisions instead of conferring with his/her real estate professional. VERY frustrating for the agent especially given that bad asking price decisions often lead to significant loss of net in the seller’s pocket.
Why does the consumer love these estimators? Several reasons.
First, in the information age consumers simply enjoy exploring, learning, and making online discoveries.
Second, most on-line estimators have massive marketing machines that guide consumers to their websites.
Third, there’s a principle in psychology called “confirmation bias” that states we all have a tendency to interpret new evidence as confirmation of an existing belief. So the information can play into a buyer/seller’s beliefs.
So what’s an agent to do about it?
Let’s start with a reality check: these estimators are here to stay, consumers like them, and you need to put on your big girl panties and deal with it.
That being said, a great strategy for you is to focus on how to explain estimators and how to educate your clients so that they will make good asking price decisions.
When planning this conversation about estimators consider these points:
- This can be a fairly complex topic, which means it’s easy to overwhelm the client.
- When conveying information on price often stories are more impactful.
- Ask yourself: What’s the benefit to the client? In the end, that’s really what they want to know.
Here’s my favorite way to explain the difference between an online estimator and a CMA:
Okay, I hope this example helps you analyze how to fight the misconceptions about online estimators. Also, don’t forget to sign up for our live and free Training Webinar today, 3/22/17 at 2pm EST: How to Get a Reasonable Asking Price from Unreasonable Sellers: Discover the 3 Step Process. Click here to register.
P.S. Have you joined The Strategic Agent Facebook Community Group yet? If not, you’re missing out on great conversations and early access to new programs and special offers. It’s a great community of 500+ active real estate agents where you can post questions and share ideas. Click here to join today!