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How do you get your Seller to listen to reason in a difficult market?

How do you get SELLERS to listen to your best advice?

The market has drastically changed in the past few years. We have to tell sellers that their house is worth less than they thought it was.

As professionals we have to give people bad news sometimes. Tell them the reality of the situation instead of telling them what they want to hear.

Even telling people that this isn‘t the best time to try to negotiate commission, you don‘t want to miss showings when there is more and more competition.

Sometimes sellers think that you are just pricing the home for a fast sale so you can get a commission!

So how do you get your sellers to listen to reason?

Doing a professional CMA helps.

Explaining how the inventory and market affect the price.

The number of homes in the area on the market now. (The competition)

The number of sold homes in the previous six months. ( The comparables or comps.)

What do you say to get the seller to listen?
All the best!
Kevin

Posted by Kevin O'Shea, White Plains, NY Real Estate on 06/20/2008 03:01 AM

Comments (13)

seller, real estate, comparables, competition, sold, professional, market, advice, negotiate, commission

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13 Comments on How do you get your Seller to listen to reason in a difficult market?

JUN

2008

Hey Kevin. I find you take it in pieces. Keep telling them, keep showing them why their house is overpriced. SHow them the feedback. Take them to houses in the area that have sold for less, but are equal to or better than their house.

It is difficult I know. Good luck. I have been there.

Thanks

Don

Hi Kevin- This is a tough one. We do the CMA and bring the recently solds. Still very often the owner has a preconceived notion of what they should or "need" to get. It has been really tough. Even the price we think the home should sell at does not bring a buyer. Frustrating. There are not a lot of people out there right now who are comfortable taking the huge step to homeownership.

Yes difficult at best. We try and not list homes that are overpriced. I lost 2 listing recently because I told the truth. Oh well Im not there to list Im there to sell!

Hi Kevin ... I present the CMA and market data as you mention. It does not always convince them. Unfortunately, the most important step in selling a home is done when you first meet your clients, which can be a real disadvantage. I have not yet had the opportunity to try this, but another Realtor suggested having your client sign an acknowledgment, stating that they were advised of the overpricing. This can sometimes bring the point home.

It can be really difficult. I think the recently solds and comparable actives are very convincing in this market.

Hi Kevin. I keep my sellers posted on everything that I do. If they understand that, they have no one to blame, they realize it is price.

Ken

Good question. I am going to be checking this post for comments.

Kevin I think they national media has done a pretty good job of letting all of my customers know their home is worth less than it would have been a year ago. Now, overcoming that they might be upside down altogether is my job unfortunately.....

Kevin,

I just lost a listing recently because I showed the sellers the comps and the CMA and then their mother, a REALTOR(r) from another state called and challenged me on what the comps showed. Another agent got the listing at $10,000 over what I had suggested listing at and they are now down to what I had suggested and have over 4 weeks on the market. So I guess you let the facts speak and either hold your ground or take a listing that is overpriced and will sit there. I choose to be gently firm and not take a listing that is not destined to sell.

Don R.

Don: Very true, sometimes I will go in as pricipal broker and the seller will listen to me, hearing a different voice saying the same thing sometimes help.s

Barbara: It is difficult, but honestly telling them how tought the market is helps.

Laura: I did a sheet on "Buying a listing" that I put in with my presentations that helps them understand a CMA

Marie: Wow what a great idea! A disclosure that this will happen when you overprice and I understand this ... Thanks.

Stacey-Ann: I agree, but sometimes they don't listen.

Ken: That is another great idea, so many times we do things and don't tell the sellers. They need to know.

Melody: I love the disclosure idea and the idea of telling people what you have done. (They think we sign the listing and forget about them if we don't tell them.)

Anthony: It's true, there are none so deaf as those who will not hear.

Don: Smart move, The Buying a Listing sheet that I put in my presentation asks them to carefully look at the comps when deciding on a price.

Don, nice move!...the biggest difference is your mindset! You are separating yourself as an informed and knowledgeable professional. No one would ever og to their dentist for legal advice or a CPA for medical advice. Same holds true for RE. It all starts with knowing the market better than anyone and conveying that to the seller. The rest is up to them and frankly sometimes you just are not going to win them. And having the rioght mindset will move you to the next one without a single regret.

Good posts!

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