Price Is King When Listing Real Estate!
The scenario: You're at the Johnson home giving your listing presentation and all is going very well except for the pricing. The market facts of record indicate a value between $250-255. Your goal is to list it at $249,950 and tops at $254,950 with the understanding that the price will be reconsidered after 30 days.
Here's the obstacle: They want to start at $265,000 on the theory that they'll probably need to negotiate. STUDY THESE WORDS UNTIL YOU KNOW THEM LIKE A REFLEX.
They work beautifully.
"Mr. and Mrs. Johnson, I'm trying my best to put myself in your shoes this evening. Many brokers are mainly concerned with taking listings and will tell the sellers whatever they want to hear. I don't think this is fair because your main concern is selling the property, isn't it?" (Don't pause; you must jump on the next sentence.) "That's why I spent a considerable amount of time today preparing facts to substantiate a fair market value. I've seen salespeople take a listing at any price, just to get a sign in the yard and then, six months later, the property is still sitting there. The advantage of first-time exposure is gone. In many instances, the sellers even receive less than they would have, had they started at a realistic figure." "See, I'd rather tell the truth and risk rejection tonight instead of telling you what you want to hear to make you happy and risk losing a client for life." "My business tomorrow is only going to be as good as my service to my clients is today. I build my business through referrals from my current and former clients. That is only made possible by delivering service beyond your expectations."
That being said, and based on the facts, Mr. and Mrs. Johnson, I feel we should start between $252,500 and $257,500." (Why do I suggest using the 2 figures? Because I have determined that there is very little chance I'll be able to get them at $249,950 - which is an ideal price in today's challenging market conditions and they are struggling to mentally accept that they can't get $265,000!)
They may say, "Mike we just don't feel we could possibly go any lower than $259,950 and that wouldn't leave us any room to come down!"
Mike: "Well I can certainly understand why you feel that way and maybe I've missed something. Could you elaborate on why you feel your home will sell for more than the market research indicates?" (Let them talk and listen carefully) When they are finished, validate them by saying, "I understand how you feel and in fact many of my clients felt the same way when faced with facts of record that indicated a lower market value than they were expecting. And you know what they found? When they finally agreed to list there home within the market range indicated by the facts they were able to sell more quickly and for more money than their competition and complete their move hassle free." "That's why I'm being so persistent tonight. I want you to realize the most money, in the shortest period of time and with the fewest hassles possible." Isn't that what you'd like too, Mr. and Mrs. Johnson?"
Mr. Johnson: "Well Mike, we do need to sell as soon as possible." "Will you sell our home within 30 days at these prices?"
Mike: "Well, that depends Mr. Johnson. You see, we now have a ____ month supply of homes for sale in your area and price range. This means that in any given month only ____% of those homes will go pending. You would like to be one of the homes that goes pending, right?" In order to give you the best odds of getting your home sold in 30 days we'll need to price it aggressively at 5-10% below the comparables. In other words, it would sell between $229,000 and $245,000 approximately. At a realistic value of $255,000 we can expect your home to sell within the days on the market averages for your area and price."
Mr. Johnson: "Mike I guess we could start at $255,000. But we're going to be firm at that price!"
Mike: "Terrific." "I'd like you to invest $50 in marketing tonight and list your home at $254,950. That way we sound a little better than $255,000, Okay?"
Mr. Johnson: Sure Mike, that's fine.
Now you've got a reasonably priced listing for 6 months and you have them set up for the current market conditions.
Rock and Roll!
P.S. Want tips weekly delivered to help you sell more real estate? It's 100% content and complimentary from 'Yours Truly'! Jump in and let's do this!
Comments
Post a Comment