One of the first things sellers want to know from an agent is: "What price do you recommend we list at?" Once you give them a number, the tone for the rest of the meeting is set based on what their expectations were. I try to take the list price and put it in context of what they will be netting (walking away from the deal with) from the transaction. My net sheet shows them what they can expect in terms of concessions, price negotiations, commission and other possible costs, etc and what their bottom line will be. Once we agree on a bottom line, it is much easier for them to see how the list price is only a part of the equation and not the only thing. Then, when it comes to a price reduction or adding an incentive, they can see how it relates to their net. In today's market, I find this approach helps get the home priced right from the start. Also, I always bring the net sheet to the second meeting and only after I have viewed the home and have had time to reviee the competitive market.
Do you discuss "net" numbers? How do you show your clients the big picture? Do you discuss list price at your first meeting?
Good idea! It really is about the "math" (what will I "get" from the sale?).