If you’re a real estate agent wondering about the best strategies for selling houses and explaining the benefits of different listing approaches, you’re in the right place. We’ll compare the difference between a traditional listing vs. real estate auction, highlighting the advantages and disadvantages of both. We’ll explore an exciting third option that’s shaking up the industry: EZ Real Estate Offer. This innovative platform, championed by seasoned real estate agent and auctioneer John Froelich, combines the strengths of traditional listings and real estate auctions to offer sellers a transparent and efficient way to sell their homes.

Best of all? John shares his value proposition and simple pricing explanation he uses in conversations with sellers [WATCH VIDEO INTERVIEW]

By the end of this guide, you’ll understand the use cases and benefits of the following:

• Traditional Listings
• Absolute Real Estate Auction
• Reserve Real Estate Auction
• Online bidding
• EZ Real Estate Offer
• Transparent Negotiations
• Attracting Multiple Offers

Jump in by watching the video or reading the comprehensive guide below.

Pricing Psychology and Multiple Offers: Best Practices For Real Estate Sales

In real estate sales, understanding pricing psychology and handling multiple offers effectively can make a big difference. As a licensed agent and auctioneer, John Froelich has figured out how to incorporate them into his sales strategy.

Pricing Psychology: Setting the right price is crucial. If a property is set too high at the start, buyers are less likely to make offers. When there’s no competition, it’s easy for a potential buyer to offer low.

Starting with a lower price can drive competition and, as John describes, is usually the most effective way to get to fair market price.

Additionally, transparency helps underscore competition among buyers, which can drive prices up.

Managing Multiple Offers: The right pricing strategy will attract multiple buyers and get the seller multiple offers to navigate and choose from.

But if you go the extra step in making this process simple and transparent, you can help your seller and all interested buyers negotiate quickly and competitively.

The EZ Advantage: EZ Real Estate Offer combines pricing psychology and multiple offers into a powerful selling tool. It’s like having the excitement of an auction without the commitment, as well as the control and transparency of a traditional listing. This approach helps sellers secure the best value for their property while buyers know precisely what they’re paying for. In the end, all parties can reach agreeable terms transparently.

Option 1: Real Estate Auction: Pros and Cons

Real estate auctions offer an exciting alternative to traditional listings, but they come with unique pros and cons for sellers.

Pros of Real Estate Auctions:

Auctions can lead to quick sales and competitive bidding, potentially fetching higher prices than the seller ever dreamed of. They also offer transparency, with competitive bidding revealing the property’s actual market value based on auction results.

Cons of Real Estate Auctions:

However, Sellers have less control over the final sale price, which is determined by bidding during the auction. In an absolute auction, the seller is forced to accept the final bid. In a reserve auction, a sale might not be guaranteed.

Absolute vs. Reserve Auctions:

In absolute auctions, there’s no minimum final bid, and the property sells to the highest bidder regardless of price.

Reserve auctions let sellers set a minimum price (reserve), ensuring the property won’t sell below that amount. However, this can create a stigma if excited bidders hear a seller has decided not to sell after all.

Real estate auctions can be effective for motivated sellers, but it’s crucial to understand the nuances between absolute and reserve auctions before choosing this route.

Option 2: Traditional Real Estate Listings: Pros and Cons

Traditional real estate listings offer a familiar approach to selling properties, but they also come with advantages and drawbacks for sellers.

Pros of Traditional Listings:

Listing a property through the MLS (Multiple Listing Service) provides a structured marketing approach, including open houses, online listings, and agent showings. This method is more familiar to typical buyers than auctions, and sellers have greater control over pricing strategy and negotiations.

Cons of Traditional Listings:

However, traditional listings often take longer to sell compared to auctions, and the final sale price can be uncertain. Sellers may also encounter challenges negotiating multiple offers and managing buyer expectations. Without a unified and transparent platform for streamlined communication and transparency, negotiations will only be as effective as the person making them.

Pricing and Negotiation in Traditional Listings:

Sellers and agents work together to set an initial list price based on market analysis. Then, the agent markets the property to attract buyers. When and if offers come in, a strong listing agent will make counteroffers and adjustments to reach a mutually acceptable price between the seller and buyer.

Traditional listings offer a reliable method for selling real estate, but sellers should anticipate potential challenges and a potentially longer sales timeline compared to auction methods.

Option 3: Online Bidding Events

Online bidding events, like those on EZ Real Estate Offer, offer a modern way to sell properties, blending the best aspects of auctions and traditional listings.

Advantages of Online Bidding Events:

These events create a transparent platform where buyers can openly bid, leading to competitive offers and potentially higher sale prices. Sellers benefit from direct communication with bidders and real-time negotiation.

• Transparent Bidding: Buyers see the competition and bid accordingly. Sellers can view offers in real-time.
• Accessible to More Buyers: The EZ platform expands buyer participation beyond local markets, helps facilitate financing options, and leverages online reach for broader marketing.
• Easy, Effective Negotiations: Offer negotiations are effective with clear communication and real-time interaction, which makes deals on the EZ Real Estate Platform a win-win for all parties..

Online bidding events revolutionize real estate sales, giving sellers more control and efficiency compared to traditional methods like listings and auctions.

Value Proposition and Sample Scripts for Seller

When explaining the EZ Real Estate Offer platform to sellers, it might be the first time they’ve heard such an option existed! Here’s a sample script to effectively convey the value proposition of this listing option:

“Mr. and Mrs. Seller, I have a unique advantage that can sell your home better than any other agent. With EZ Real Estate Offer, I use a special online bidding platform that attracts more buyers and creates competition, ensuring you get the best price. You can see all offers in real-time and decide which to accept, reject, or negotiate at anytime. This platform reaches buyers beyond our local area, giving your home more exposure. Let me show you what you can net from a sale whether we use traditional listing options or this one.”

Quick Sales Pitches:

• Sell your home with more buyers competing for it.
• See all offers instantly and choose the best one.
• Reach buyers beyond our local market for maximum exposure.
• Take control of the sales process and get the best price with EZ Real Estate Offer.

Unlock the educational potential of these strategies and elevate your real estate knowledge with John Froelich and EZ Real Estate Offer!

Discover how to revolutionize your value proposition and get more listings with EZ Real Estate Offer. Book a discovery call now.

Things to do next:

• Listen to John’s full tell-all episode to learn more about maximizing your property’s value.
• Become a certified agent today
• Book a call to speak with our co-founder
• Join our Facebook Community to keep learning!