I hear what you saying
I just can't believe my ears!!
Proper price positioning prevents predictably poor performance!
Proper pricing of our inventory has always been important and today it has become an essential for success. Price reductions are sometimes difficult to get and it's important to understand why and what to do about it.
Our clients are better informed and REALTORS® are no longer the only source for real estate information, we are still the best source but now we have to compete with lots of noise. Our clients are bombarded with information from 24 hour news shows, the internet, print publications, talk radio, blogs, seminars, text messages, lectures and even roadside signs. We may need to resort to tinfoil hats to protect our clients and our livelihood! Everyone has an opinion about real estate and with the available media; everyone now gets a voice.
When you talk to your seller and he/she appears to be listening and then fails do as you suggest, it's not that they don't believe you, they just can't see the picture your are drawing! It's like those hidden image posters that have a picture hidden inside. (they are called stereograms and yes I had to look that up) Some people can spot the image immediately some people can see it if they let their eyes go out of focus or view it from an angle and some folks just never see the image.
Your seller is the same, you paint a vivid picture and they try to see what you've drawn but with all the ‘noise' the message remains hidden.
Don't give up!!! You may need to come at this from a slightly different angle, step back a little bit or maybe just let their eyes go out of focus first.
I recommend a six step process for price reductions (tip for the day; if step one is successful do NOT continue through step six!) We will cover one method in this posting.
First a little story to set the stage...
I was chatting with a local legend, a successful agent large and deep voiced, well respected and authoritative. He was telling a story about an elderly couple trying to sell their condo, they need to reduce and "Jack" went to see them to discuss the subject. As "Jack" explained they were selling their condo to move out west to be near the grandkids. He sat them down and explained the state of the market and was very direct, he told them if they did not reduce their price they would fail to sell and they would die in the property, they would die there. He went on to explain that before the end of the conversation he told them no less than 6 times that they would die if they didn't take his advice. I was impressed, I like the direct approach and I believe that I am very direct. I have never actually told someone that if they failed to follow my advice that they'd die, but direct none the less. I knew how this story would end, I knew we'd get a happy ending and that direct and forceful are always effective techniques. I was surprised when "Jack " told me that the home never sold.(I believe the couple are still in good health)
I was shocked, devastated! How could this have failed? "Jack's" moral was that you just can't help everyone. I believe that's true, however these people seemed well motivated to move and remember want to move can be as strong or stronger a motivator than need to move. So what did "Jack " fail to do? He painted a very clear picture and the clients failed to see it. He should have tried to come at them with a slightly different angle. Know this ....
Price reductions feel like failure
You will find that some people will avoid failure at all costs, even the cost of their own success. A different approach can produce better results.
The seller's had indicated the reason for their move, they wanted to be near their grandchildren. Asking questions about the positive goal that there are pursuing is a more pleasant conversation. "Tell me again where you are moving to?" "Why is that important to you?" "Are you comfortable waiting for this to happen?" "What if it never happened? Would that be OK?" "If everything worked out and you were sold and settled next month, how would that feel?" "And what would that do for you?" "That sounds like it might be important to you?" " What would you be willing to do to make it happen?" "Let's take a step towards making that dream come true"
Getting your clients to attach to their dreams is powerful. It is positive and it does not feel like failure, it may feel like sacrifice and most people would rather sacrifice to achieve something positive than to fail in their efforts. We will explore more techniques in future posts.