Hi folks. I wrote a post this week titled "My Poinciana "Peeps" Need Me!". It was basically about the things I do to get my listings sold in this more difficult market or any market for that matter. There were two questions that were asked in the comments that I want to address in this post. The first one was asked by Bridget McGee. "How do you get the sellers to get it?" And the second was "How do you get people to price their homes aggressively?" asked by Kevin & Sherry Spengal.
These folks are really asking the same thing "How do we get Sellers to agree to our pricing?" Let me see if I can give you some insight on this and maybe help you in your business. One thing is for sure, if you want to be a successful listing agent you have to get the pricing right and you have to get the Sellers to agree with you. The quickest way to fail, as a listing agent, is to not sell it once you list it. I know from experience that if you have a successful closing you are the hero and if you don't get it sold you are mud. That's just the way it works. Sellers are hiring us to get them to closing, anything short of that, is failure.
Number one rule for a listing agent: If you don't know for sure you can sell it, don't take the listing. This doesn't mean take it overpriced and then work on them. It doesn't mean take the listing because the Seller said they would clean it up. It means, the price has to be right and the property has to be ready from day one. If you follow this one rule ALL of your listings will sell and you will be the go to guy in your market. Sellers will be calling you to come over and list their property NOT to interview. I don't do interviews. The listing is mine before I even go over to meet them. My reputation precedes me.
OK, so here are a few steps, that will help in getting a property priced right and getting the Seller to agree with you.
- Know your market: Folks you have to know your market inside out. What's on the market. What's selling and how long it takes. You also have to know what direction the market is heading in. Are values declining? Will next year be better? And you have to be able to explain this to your potential Sellers with confidence. Look them in the eyes and give it to them straight. If it's going to be difficult to sell their property than tell them this. Do NOT sugar coat it. Our job is to tell them what they need to hear NOT what they want to hear. If you sugar coat it or are trying to fake it you will lose credibility and the game is over. This is one of the reasons I work a very limited market. I know Poinciana Fl better than anyone and my potential Sellers know this. They know because they see me selling stuff and they know because I tell them.
- The most important step is to build trust: Sellers MUST trust you or you do not take the listing. No exceptions. Without trust you will fail in getting the property priced right. Trust is built by listening to them and then sincerely trying to come up with a strategy to help them achieve their goals. And of course, you have to know what you are talking about.
Folks, when I talk about "getting the price right" it's important to remember I am NOT talking about what the property is worth. I'm talking about what it will take to sell it. This may be considerably less than what it is worth. That's why a recent appraisal means nothing to me. One of my favorite lines, that I start every listing with is, "I'm not here to tell you what your property is worth I'm here to tell you where we need to price it to get it sold."
Once you've told then this you can keep going back to it. When they say "My house is worth more than that." Agree with them. They are probably right BUT "I'm not here..................". See how that one phrase overcomes their objection? AND it's true. I too do not want to under price their property. I want to get them as much money as I can BUT I'm not going to do that by overpricing. In fact, if I overprice it, it will end up costing them more money in the long run. The best time to sell a property for the highest amount of money is in the first couple of weeks. The price needs to be right from day one.
OK, so we have built trust and we know our market and we know where the pricing needs to be. Now here comes the biggie.........choose who you are willing to work with. If they don't need to sell (in a slow market) then walk away. This means they have other options or are in no hurry and have no motivation to price it right. They are testing the waters or hoping to get lucky. And there is absolutely nothing wrong with that. It's just they won't be doing it with me.
I only list properties for Sellers who need to sell. And you want to find this out quickly. I normally find this out over the phone. I need to know their motivation. If they are having financial difficulties, getting a divorce, job transfer, need to downsize due to illness, retiring and moving out of the area etc.....then I will meet with them and do everything I can to help them through this situation. They need me and I will be there to help them get their home sold. We will become friends and I will be successful.
OK, this post is getting really long so I'm going to stop. I promise to write another post if questions come up in the comment section.
So in a nutshell:
- Know your market. Speak from a position of knowledge and confidence. Be honest!
- Build trust. You must have genuine care and concern. If your only motivation is to get paid, you will fail.
- Choose your customers and clients carefully. Your goal is to build lasting relationships with folks that will "talk you up" to everyone they meet who has Real Estate needs.
I hope this helps a little bit. Do you have any suggestions or questions?
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