A crazy smart realtor discovered how to generate buzz for lightning-quick sales and above market prices by mirroring Apple iPhone sales. It’s why people stand in line for hours to purchase iPhones.
Real estate agents without a well-planned home pre-launch strategy engage in “20-years-ago” marketing, putting their newly listed homes on the market like a grocer throws a loaf or bread on the shelf. No smart retailer would do it. In today’s world, no smart Realtor should either.
But many Realtors who want to engage in pre-marketing to maximize price for their home-selling clients are being thwarted by an antiquated rule. Some MLS systems won’t allow agents to build excitement and pent-up demand through pre-marketing. They have an ironclad rule that requires newly listed homes to be immediately submitted to MLS within 2-3 days after listing. No pre-marketing. No excitement generation. No strategy. Just throw it out there and hope for the best.
There is no question that pre-marketing homes have significant price enhancing advantages:
It gets buyers excited. Intelligent pre-marketing builds enthusiasm before buyers enter the door. This makes them more likely to offer a higher price when they’re allowed access.
It generates “social proof.” When agents have the time to generate interest before the official first day on the market, they can schedule back-to-back showings on the very first day (30 minutes apart is my recommendation). Buyers see other buyers, creating visible proof of desirability.
It creates fear of loss. Fear of loss is one of the most powerful price enhancers for any product. A flurry of showings on the first day creates urgency in interested buyers and makes them more likely to act quickly and offer a higher price to avoid losing out.
It puts buyers in a “higher price frame of mind.” Put yourself in a buyer’s shoes and imagine your agent calling to say that a fellow agent has just listed what appears to be the “perfect home” for you in the neighborhood you covet, and at a price, you can afford. Because of their friendship, you can be among the first to see the home. If you are like most buyers, you’d instantly regard the home as desirable, sight unseen.
It allows home sellers to test their price, risk free. In addition to generating a higher price (and a faster sale), pre-marketing gives sellers and agents the chance to “beta test” their asking price with minimal risk. If buyers react favorably, the home will sell quickly. If not, there’s still time to adjust the price before submitting the home to MLS.
It allows homes to be marketed without increasing the disheartening “days on market” score. The MLS discloses a home’s days on the market to buyers (one of my biggest peeves). When a home has racked up days on the market, buyers perceive that it must be overpriced, or is flawed.
Pre-marketing is a critical step in selling a home lightning fast over asking price. Very few agents have the in-depth training Harvey McCallum has to accomplish a bidding war with multiple offers Everyone selling their home should embrace and leverage a bidding war or multiple offers.