Getting Sellers Ready to Sell

Markets change on a cyclical basis.  It doesn't matter if it's the stock market or the real estate market.  They cycle.  Unfortunately for most homeowners - they don't see cycles.  They see blood, sweat and tears and dollar signs. 

Most market cycles are not as devastating as the recent one has been.  So, homeowners tend to expect a profit on a real estate sale, and that's normally the way it is.  But, every so often a cycle comes along that sends the market in a reverse direction.  That shift defies so much of the real estate hype seen on TV infomercials that sellers find it nearly impossible to believe. 

There are certain things an agent can do to make sure his client understands the current market.

• Make sure the CMA at list is as current as possible.  Houses that sold 12 months ago may not reflect the current market conditions.  Try to stay in a 3-6 month window with your preference on the three month side.
• Have copies of listings you are using for comps so the seller can see the pictures to satisfy his concern that they comps really don't reflect his property.  Stay within the same style, size and amenities as the clients property.
• Be honest.  Help the seller understand that an overpriced house is a lonely house with no buyers.  You can have a second set of comps that show overpriced houses and days on the market.   Explain to the seller that a house that sits too long gets stigmatized.  Then, it gets few if any showings or interest.  If he's not willing to sell within a marketable price, decline it or set up a rapid price reduction plan that has triggers, and stick to it.
• Help him understand that you want to help him get the most for his house.  It helps you financially, and it helps him financially.  Lowering a price takes money out of both pockets.  Selling at a lower than desired price is an option that needs to be explored if the seller has an unrealistic idea of the value.  He needs to understand why his price is unrealistic if it is.  
  
• Make sure he understands the importance of showing condition.  It must be ready all the time, and that means ALL THE TIME.
• Encourage him to trust your market judgment.  You do this all the time.  That's why he hired you.  He needs to know that he can trust you.  You are his representative.  Therefore, you are looking out for his best interest. 
• Have an agreed upon adjustment plan.  The price isn't the only thing that will need adjustments from time to time.  There may need to be some de-cluttering.  He might need to find a way to remove some of his possessions if they are hindering the appeal of the house.
• Explain to him what staging is all about.  Have him drop by a couple staged listings to see what kind of difference staging makes.  He might want to have a stager drop by his house to see how he can stage it with the items he already owns.
• Help him to understand that he needs to be ready to act once the property is on the market and people are looking at it.  I've noticed that the best offers often come in early.  He may want to consider every offer that's within reason.  The longer it sits, the more likely it is to have low offers.

Helping a seller mentally prepare to sell is very important.  An early reality check might be a good test of the sellers flexibility when the property hits the market.  We're in a cycle, but it's not the cycle most sellers want to be in.  You can help them work through it.