Declining Market Value Strategy Dialogue
This is a great tool for you folks in the industry and is a lesson to all Sellers in today's market. Take a 8x11 piece of blank paper. Now draw a line horizontally across the upper middle of the page. Now starting at the left side of the line, draw a short line straight up a couple of inches-make it an arrow. Now startign at the middle line again draw three separate arrows this time pointing down. Make one about two inches, the next 4, the next 6 inches. This is the "Decling Market Graph" you now will use as a visual aid for explaining the following:
Use your "Talking Pen" to first highlight the horizontal line stating that this is where all the properties now on the market currently reside. You state that all these properties have one thing in common; they aren't selling! You further state that in an "Increasing Market" you'd list at this point (indicate vertical arrow pointing up) because the market was accelerating weekly.
However, that was long, long ago in a galaxy far, far away! Now we try to beat the pack and avoid "Chasing the Market" by listing ahead of everyone. We do this by pricing below what most Sellers and their Agents think the market price should be-but since they are not selling we need to "set" a new price point to effect the sale (indicate first arrow going down). If you don't list at this point the market will soon leave you. The market overall will be at this point (first arrow down) then you'll have to play "catch-up" and list with everyone else all over again.
But you will have to list lower still to effect a sale (indicate second downward arrow). I can get you this price today (indicate first arrow) but if you overprice and stay with the pack you'll loose equity when the market moves and may have to list at this point (second arrow down) or worse yet at this point (third arrow down). Now what will it be? Do you wish to chase the market and loose further equity or list it ahead of the pack tonight and preserve your equity?
The dialogue for this can be modified around this basic structure. Remember, the longer they wait the more equity they loose. Does your client want to risk further eroding of their equity? Remember, no one wants to be put in the position of chasing the market! This is great for people who wish to wait until next year. Good luck!
(This was "Lifted" from a Howard Brinton seminar and since Howard "lifts" from everyone else I'm sure he won't mind you folks using it also!)