Managing Sellers Expectations

Sales Meeting

October 20, 2010

Video

Wealthy Homeowners Wont Budge on Price

Wall Street Journal

The News Hub

Ask, and Listen

• Ask your client:– What are your expectations?

• Price• Time table• Discuss how many DOM before price drops

– How did you come to those conclusions?– Are you pricing based on emotion?– Would you be willing to sell for less than what you

paid? This is a reality of the market today.• Researchers find that the pain of a loss is two to three times

greater than the joy of an equivalent gain

Housing is Local

• “National Housing Market” isnt what matters, the Omaha market is

• The larger the inventory, the more choices buyers have and the more price-competitive you need to be

Comparables

• DOM

• CMA- What other homes sold for– Try to use information from past 3 months

– Use older information (from peak) to compare and show sellers that home values have gone down

• Show Avg List Price/Avg Sold Price

Neighborhood Values

• CMA report on area, subdivision, zip code

• Schools, entertainment, walk score, hospitals, recreation

• Is new construction nearby? Is it priced to compete with your aging home?

Have the client attend open houses

• Let them see for themselves what the comparables are

• Ask the agent – how many offers they

have received

– If they have dropped the price at all

Supply & Demand

• Price to offset inventory if the supply is much larger than the demand

• Share with clients how many homes in the area in their price range are present so they know how much competition they are up against

Buyers Market

• The home is worth what a buyer is willing to pay for it

• Is the area a growing market with people coming in?

• Or is it an area that doesn't attract a lot of new residents, where many shoppers don't have to buy but are looking to pick up a bargain?

Pricing

• Goal should be a fair price -- something reasonable given the price of other homes in the area

• The amount of traffic that a listing gets in its first week is five to seven times what it gets in its ensuing weeks

Pricing Strategies

• In a market where prices are falling, you'll make more money if you price to sell

• If prices in the area are dropping 1% each month, and they want to sell within the next three months, take 3% off the price right off the bat– If they want to put home on the market for

$400,000, set the price at roughly $388,000

Why wont they buy?

• Uncertainty is holding buyers back

• Unemployment

• Keeping options open in case a job in another state comes up

• Rates are low, but it is tough to get financed

Suggest Incentives

• Pay/Put a credit towards buyers closing costs

• Offer a transferable home warranty

• Motivate buyers with option to close within 30 to 60 days

• Some sellers are even throwing in a new car, vacation or credit equal to 6 months of property taxes

• Seller financing

What Works?

• Most audiences relate to personal stories:– Homes you have helped sell fast

– Stories from others in the office

– Homes that were overpriced and how long they stayed on the market

• Share your marketing plan

• Educate your client on trends

7 Principles of InfluenceHow to Win Peoples Cooperation

1. Make people feel understood.

2. Find common ground.

3. Listen.

4. Don’t argue.

5. Care about the people you want to influence.

6. Help people believe change is possible.

7. Time your request well.