Sellers Aren't Stupid.

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

tutas towne realty

"Broker Bryant, How much do you think our home is worth?" "Well, Mr. Need T. Sell, I think you house is worth about $260,000. However, I'm not here to tell you what your house is worth, I'm here to tell you what it will take to get it sold. In my opinion, I think we should Range Price your property from $239,000 to $259,000 trying to sell as close to $250,000 as possible." He says in shock, "Broker Bryant, are you crazy? I just had it appraised 6 months ago and it appraised at $275,000! There is no way I am giving my house away at $250,000."

Now being the "good looking" Realtor that I am, I respond, "Mr. Need T. Sell, you have been on the market for 6 months priced at $265,000 and told me you have not had a single showing. How has that been working out for you?" He looks at me sternly and says, "Broker Bryant, the reason our house didn't sell was because our Realtor didn't do anything. We asked her to run an ad in the paper and she never did. All she did was put up a sign and put our home in the MLS. You can't sell a house like that. I don't know how they ever sell a house. All she ever did was call us every month and tell us to reduce the price. That's the only time we ever heard from her. She's the one that said she could sell our house at $265,000."

"Now, Mr. Need T. Sell, how did you come up with the $265,000 price to begin with? Did your Realtor go over an analysis with you?" He answered, "We told her that's what we wanted and she said OK. She actually tried to get us to price it at $275,000 but we knew we wouldn't get that much for it. We just need to sell."

"Well, Mr. Need T. Sell, today is your lucky day. I'm here to tell you that I will get your home sold. The only thing we need to figure out is for how much and how long it will take. Let's have a seat and I will go over some info with you and together we will try and figure this out. I know you need to sell and frankly my wife is very expensive and I need to sell your house. So we both want the same thing. So let's see what we can do to satisfy you and my wife."

"OK, so here are the details on the recent sales in your area. As you can see, most homes similar to yours are selling between $239,000 and $255,000, also you can see that here are 50 homes like yours on the market from a low price of $239,900 all the way up to $275,000. Quite the spread. Now if you look here you can see that the way your house is priced right now it shows up at number 39 on the list. That means there are 38 houses similar to yours that are priced lower. A Realtor is probably only going to show 10-20 homes to their Buyer so that means yours is not even going to get shown. Which of course you already know since you haven't had any showings in 6 months. Now, by Range Pricing your house from $239,000 to $259,000 and using the low figure as the listing price, your house will now show up number 1 on the list, also we will offer an extra .5% to the selling Realtor. By doing this your house will get shown and we can start getting offers. We should be able to negotiate a selling price in the $250,000 range, maybe a little less maybe a little more. Granted you may be leaving a little money on the table but your house will sell and you can get on with your life. In reality you are still making close to $100,000 on a house you have only owned for 3 years. What a great return. You really made an excellent investment when you bought this house."

"How come our other Realtor didn't tell us this stuff?" I respond, "I don't know, all Realtors do things differently and maybe her way works for some properties but Poinciana is my area and this is what we need to do to get your home sold. But you knew that. I'm not telling you anything you didn't already know. You watch the news and read the papers and know it's a difficult market. Sellers aren't stupid. You knew what your house would sell for long before I came over. You just needed me to reiterate what you already knew."

"Broker Bryant, I thought we were too high. I sure wish our Realtor would have been a little more forceful with us. We just want to sell and move back to Georgia." Now I close him, "Well we can't change the past. Listen, let's get you up and running right now. Sign here and here and while you are doing that I am going to take some photos and some measurements. Oh, by the way, I need a key. I will have your house on the market before end of business today. You can relax now, I will sell this house if it's the last thing I do."

"Broker Bryant, can I have some of your cards, I have a friend down the street that has also been trying to sell" "No problem, here's a stack of them for you, pass them around."

Need I say more? NEXT!

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***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

 

 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Ginger Harper 10/30/2012 12:27 AM
Topic:
ActiveRain Community
Location:
Florida Orange County Orlando
Groups:
Real Estate Rookie
Tags:
training
listing tips

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Rainmaker
834,932
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Bryant, blog we have read in some time!  Love the Mr. Need T. Sell!

Oct 31, 2012 03:49 AM #88
Rainmaker
1,518,373
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

The wife's expensive huh? Hadn't thought of that before for a close lol.

Oct 31, 2012 04:06 AM #89
Rainer
193,299
Howard Metts
Metts Group at Future Home Realty - Clearwater, FL
GRI (Graduate Realtor Institute)

Fantastic post Bryant!

Oct 31, 2012 04:28 AM #90
Rainer
255,732
Cindy Keil
Cindy Keil Coaching - Omaha, NE
CEO Cindy Keil Coaching

Great Post! We need to be completely honest, it's that simple!

Oct 31, 2012 05:04 AM #91
Rainer
286,848
Thomas McCombs
Century 21 HomeStar - Akron, OH

I'm going to borrow your line of chatter reasoning and see if I can make it work for me and my sellers. Sellers often want to try the high price first, as they "can always come down later."

Well writen!

Oct 31, 2012 05:45 AM #92
Rainer
72,752
Tim D. Krzyskowski
Realty Executives Ambassador (Orland Park, IL South Chicago) - Orland Park, IL
REO PRO

Nice Post! I love it!

Sellers aren't stupid but they also aren't as smart as they think they are and we as professionals need to show them that.

 

Oct 31, 2012 08:17 AM #93
Rainmaker
587,783
Sharon Kowitz
CRS-SRES-ABR-GRI-E-Pro-CREN Fonville Morisey Cary, NC - Cary, NC
Cary, NC Relocation Specialist ~ Buying or Selling

I love it! "my wife is expensive line" .....I use my granddaughter is expensive :O)

Oct 31, 2012 09:35 AM #94
Rainmaker
264,093
Dan Edwards 425-276-7008
Keller Williams Realty - Bellevue - Bellevue, WA

We both want the same things, and the buyers won't overpay.

Oct 31, 2012 09:41 AM #95
Ambassador
4,116,551
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Well Broker Bryant, that was pretty impressive how you helped that seller to understand what he already knew, it helps to be "good looking" when explaining these things.

Oct 31, 2012 11:28 AM #96
Rainer
152,907
EMILIA B COOPER, REALTOR® SFR.NCHSE.AHWD
LAROSA REALTY - Orlando, FL
Short Sales, Foreclosure & Bank Owned Real Estate

Excellent Post Bryant! Thank you for sharing!

Oct 31, 2012 02:13 PM #97
Rainer
37,672
Joe Pruett
Bank Plus Realty, Inc. - Pembroke Pines, FL

Hi Bryant,  This will obviously work if you believe in it and can sell it.  Different approaches work for different agents and while I understand the logic and the draw, it seems like you must have to educate every buyer and agent who makes an offer.  I may follow some of your other advice, but probably not this one :).

Oct 31, 2012 04:32 PM #98
Rainmaker
242,999
Alan Grizzle
Chestatee Real Estate - Dahlonega, GA
Full Time Realtor, Lifelong Resident of Dahlonega

I wish I could get all my sellers to listen. They seem to know more about the market than anybody yet their house does not sell.

Nov 01, 2012 09:30 AM #99
Rainmaker
1,048,953
John G. Johnston
John G. Johnston & Associates, LLC - Westcliffe, CO
An Exclusive Buyer's Agent ~ Westcliffe, CO

My question is about your market.  Are buyer's paying above asking price?  Is it a seller's market?  In this neck of the woods you negotiate the price down.  Great post and thanks!

Nov 02, 2012 09:13 AM #100
Rainmaker
508,202
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

You just have to be straight. Too much time to waste nowadays.

Nov 02, 2012 11:56 AM #101
Rainmaker
1,142,035
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Hi John. We are in an extreme seller's market right now. Prices are increasing. So yes properties sell for well over list price. Range pricing works best in a buyer's market.

Nov 02, 2012 11:12 PM #102
Rainmaker
1,048,953
John G. Johnston
John G. Johnston & Associates, LLC - Westcliffe, CO
An Exclusive Buyer's Agent ~ Westcliffe, CO

I talk to sellers frequently about their properties and who to pick for an agent.  I am curious what negotiating points you would use for the different prices?  Early or late possession date?  Repairs? 

Best article I've read and thanks again!

Nov 03, 2012 12:17 AM #103
Rainer
133,027
Rob Renk
Center Street Lending - McKinney, TX
AE | Fast Fix/Flip Loans for Residential Investors

I liked your way of reasoning with the seller to see the "light". Good suff.

Nov 04, 2012 07:58 PM #104
Rainmaker
552,418
Steve Higgins
RE/MAX Kelowna - Kelowna, BC

Hi Bryant,

Great post, had me laughing! Love it when sellers think they know more about the market than an agent does. They get a price in their head and there is no talking them out of it, then they wonder why it doesn't sell.

Nov 06, 2012 11:40 AM #105
Rainer
84,237
Brad Baylor
ERA Coup Agency - Milton, PA

Bryant - Excellent post, and a great way to handle a seller that has been mis-handled by another realtor!

Dec 04, 2012 11:10 PM #106
Rainmaker
1,142,035
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

thanks Brad

Dec 04, 2012 11:25 PM #107
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Rainmaker
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