Admin

Is it a Pricing or Motivation problem?

By
Education & Training with David Knox Productions, Inc.

When sellers overprice or raise pricing objections, the natural response is to treat it as a pricing problem and provide more data to prove the market value. But in most cases, in my opinion, it's not a pricing problem, it's a motivation problem.

Example: a doctor show's the patient an X-ray of his lungs, his diminished oxygen content, the reduced stamina he experiences...all in absolute proof that smoking is killing him. The  patient points to a lighter area on the X-ray and asks; "What about this white area right here, how long is that good for?...as he takes a puff on his cigarette. He knows he should stop smoking, we know we should lose weight...we know!

When I role play with an audience member one of my pricing techniques, about three to four levels in, he or she, playing the role of their seller, will say "Well, we just don't have to move." So let's start addressing these issues for what they really are: Motivation problems.

Early in the seller counseling interview you must establish their firm decision of whether they want to Sell or Stay. Nail it down and get them to commit. Only then should you proceed to pricing. Then when they say "We need more money", you gently counterbalance that with what they really need is to move.

The benefits of moving must exceed the need for money. Because in this market, no one is getting the "money they need".

 

 

Show All Comments Sort:
Paul S. Henderson, REALTORĀ®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

David,Nice to see you back after your first couple of blogs. I am a big fan of yours. Your blog is important and needs to also be published in the group section to receive more viewers and comments.

The only reason I saw your post is that I subscribed to your post in December...

Don't wait so long between posts.

Jun 27, 2009 08:41 AM
Dee Nofziger
|Key Realty | Maumee Toledo Real Estate Blog - Toledo, OH
Maumee Real Estate, Toledo Homes, Key Realty

Glad to see you on AR. I can actually hear your voice saying "Sell or Stay?" Paul is right, please post to up to 5 Groups so that people can find you on here. I also only saw your new post because I subscribed when you first joined. Your voice is too important to miss! I would suggest the "Realtors" Group to start. Then go from there.

Jun 27, 2009 12:04 PM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Welcome to AR and good point about the motivation of the seller and their price.  I'll put that in my bag of objections!

Jun 28, 2009 08:34 AM
Fred Carver Real Estate Consulant
Retired BC Realtor - Victoria, BC
Accredited Real Estate Consultant

Hi David..I agree, just today I had a discussion with a seller about what is the most important thing, Selling or getting the max Price..since my seller is motivated he naturally said Selling..I now have a New listing $50,000 lower.

Welcome to Active Rain..you'll love this audience

Cheers, hope to meet you while you are in Victoria at the Associate Broker Session :O)

PS: Will you only be talking about training, or will you also talk to us who are still selling ?

Oct 14, 2009 05:34 PM
Martin E. Kalisker, Esq.
Natick, MA
Real Estate Law From A Practical Perspective

Hi David - I enjoyed your talk at the Weichert New England Broker Council Meeting last week!  I've become a big fan and look forward to joining you on the first Tuesday of each month.

Oct 23, 2009 05:30 AM
Tom Davis
Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE
FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor

This is great info David!

I have enjoyed all of your training cds!  I always use them for brushing up on my skills!

Thanks!

Tom Davis

Jan 30, 2010 03:35 PM
David Knox
David Knox Productions, Inc. - Minneapolis, MN

Hello Tom,

Thank you for your post. If you want to see all my training on line, we recently started a new site. Check out my Active Rain site:

http://activerain.com/blogsview/1373594/real-estate-training-by-david-knox

Jan 31, 2010 02:12 AM