Suggesting a higher listing price may be exactly what the seller wants to hear.

In fact, it may even establish rapport with the seller.

Is it wrong to establish rapport, knowing full well the price is too high?

I read a book a couple of years ago on Psychology.

Based on the story below, as it might relate to winning a listing presentation, would you consider the realtor who engages in this type of listing tactic to be smart and trustworthy?

Believe it or not, this is a principle of psychology, whereby we are convinced by a false sense of trustworthiness. (Influence)

  • “About two years ago, I was trying to sell my old car because I’d bought a new one. One day I passed a used-car lot with a sign reading, WE WILL SELL YOUR CAR FOR MORE. Just what I wanted, so I thought; so I stopped in to talk with the owner. I told him I wanted to get about $3,000 for my old car, and the owner said he thought I should be asking for a lot more because it was worth at least $3,500. This came as a real surprise to me, because the way their consignment system worked, the larger my asking price for the car, the less money was left over for the dealership to keep after they sold it to somebody. Therefore, by telling me to ask for more than $3,000, he was cutting off his own profits. He was seeming to argue against his own interests so I’d see him as a trustworthy authority; but I didn’t realize this until much later. Anyway, I went along with the owner’s idea that my car was worth more than I’d first thought or than other dealers had initially told me, and set my asking price at $3,500. After they’d had my car on their lot for a couple of days, they called saying that someone was really interested in it, but that the price was a little too high. Would I be willing to drop my price by $200 to sell the car? Convinced that they had my interests at heart, I agreed. The next day they called back to say that the buyer’s financing had fallen through and that he couldn’t buy the car. In the next two weeks, I got two more calls from the dealership, each asking me to drop my price two hundred dollars to seal a sale to some customer. BOTH times I Ok’d it because I STILL believed they were trustworthy. But each time, the alleged deal fell through. I was suspicious enough to call a friend whose family was in the car business. He said this was an old trick designed to get sellers like me to reduce their asking price to super low levels, once they had the car (listing) on the lot.

I’ve seen this type of influence used many times as it relates to winning a listing presentation, but I’m not sure how many vendors actually caught on.

Is it wrong?

Please leave me your comments below.

I’d love to get your feedback…