Managing sellers expectations

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Transcript of Managing sellers expectations

  • Managing Sellers ExpectationsSales MeetingOctober 20, 2010

  • VideoWealthy Homeowners Wont Budge on Price

    Wall Street JournalThe News Hub

  • Ask, and ListenAsk your client:What are your expectations?PriceTime tableDiscuss how many DOM before price dropsHow 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 LocalNational Housing Market isnt what matters, the Omaha market isThe larger the inventory, the more choices buyers have and the more price-competitive you need to be

  • ComparablesDOMCMA- What other homes sold forTry to use information from past 3 monthsUse older information (from peak) to compare and show sellers that home values have gone downShow Avg List Price/Avg Sold Price

  • Neighborhood ValuesCMA report on area, subdivision, zip codeSchools, entertainment, walk score, hospitals, recreationIs new construction nearby? Is it priced to compete with your aging home?

  • Have the client attend open housesLet them see for themselves what the comparables areAsk the agent how many offers they have receivedIf they have dropped the price at all

  • Supply & DemandPrice to offset inventory if the supply is much larger than the demandShare 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 MarketThe home is worth what a buyer is willing to pay for itIs 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?

  • PricingGoal should be a fair price -- something reasonable given the price of other homes in the areaThe amount of traffic that a listing gets in its first week is five to seven times what it gets in its ensuing weeks

  • Pricing StrategiesIn a market where prices are falling, you'll make more money if you price to sellIf 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 batIf 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 backUnemploymentKeeping options open in case a job in another state comes upRates are low, but it is tough to get financed

  • Suggest IncentivesPay/Put a credit towards buyers closing costsOffer a transferable home warrantyMotivate buyers with option to close within 30 to 60 daysSome sellers are even throwing in a new car, vacation or credit equal to 6 months of property taxesSeller financing

  • What Works?Most audiences relate to personal stories:Homes you have helped sell fastStories from others in the officeHomes that were overpriced and how long they stayed on the marketShare your marketing planEducate your client on trends

  • 7 Principles of InfluenceHow to Win Peoples CooperationMake people feel understood.Find common ground.Listen.Dont argue.Care about the people you want to influence.Help people believe change is possible.Time your request well.