The Tipping Point
Every seller has that moment in time when something happens that pushes them to making a decision to sell. In fact, many sellers don't even know they want to sell until someone informs them of the benefits of selling.
For example, imagine a seller is at home and they retrieve their mail and find a letter from a real estate agent informing them that their neighbors home has sold. The seller is surprised to find out that his neighbor's home sold for $425,000 - he had no idea that homes in his neighborhood were even close to selling for that! The seller then goes about his day and doesn't give it much more thought.
Fast forward 30 days and the seller gets another piece of mail saying that another neighbor's home just sold for $440,000. The seller is now pleased thinking, "Wow, our homes have gone up in value!" He had no idea this was even possible, as the tax assessment of his home said $345,000. So, he just assumed his home was worth somewhere between $345,000 and $375,000. The seller is now thinking, "Huh... if I could get $440,000 for my home, I could finally move into that neighborhood I have always wanted to live in!"
The seller dismisses the notion, thinking it must be 2 isolated incidents and quickly disregards the fantasy of moving to his dream location. Fast forward again to 60 days later when the seller gets a letter from a real estate agent specifically addressed to him informing him that inventory in his area and neighborhood is very low. So low, in fact, that sellers are getting multiple offers which are bidding up sales prices to historically high levels.
Is this the sellers tipping point? Is this that moment in time when the seller says, "I think it is time for me to seriously think about selling"? It might be at least the time for the seller to talk to that agent about the possibility of his home selling for a record high price.
So now the seller calls the agent to find out if this information is really true, and the agent makes an appointment to come and see the seller, and the rest can be easily predicted. The seller lists his home, has multiple offers, and indeed the seller gets to move to his desired neighborhood.
This is a perfect example of an agent finding the sellers tipping point and working hard to keep homeowners up to date on what is happening in their neighborhood. This is how you as an agent can find new sellers in a market where getting new inventory is beginning to feel like looking for a needle in a haystack.
If you work diligently with sellers to educate and inform them, you are sure find those sellers who have reached their tipping point and will actually be eager to sell. Don't wait for sellers to call you, because in this market you have to cultivate sellers and help them find their tipping point.
By Denise Lones CSP, M.I.R.M., CDEI - The founding partner of The Lones Group, Denise Lones, brings over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the source for all things real estate. With a passion for improvement, Denise has helped thousands of real estate agents, brokers, and managers build their business to unprecedented levels of success, while helping them maintain balance and quality of life.