We all know that right now price is critical in which homes are selling vs. those that are just listed. It has become more and more important to price them right from the very beginning.
Right now I have 62 active listings and am constantly working on getting price reductions. I wanted to share a few thoughts and ideas with you that will hopefully help you to get the prices you want at the appointment, and the reductions you need to get more properties sold.
I have found that taking the emphasis off you and your opinion as the agent, and putting it on the market instead, is the easiest way to have a client choose the right price. And I say have the client chooose the right price, because whenever you can powerfully present the cma and have the client choose the price based on this, you’re generally ahead of the game.
After you present the cma including the overall statistics of average list price, sales price, and days on market, Ask the client’s opinon of price. Try saying someting like, so after reviewing this market research, what price do you feel we should choose to cause your home to sell vs just be listed like the other thousands of homes on the market right now? Most of the time you’ll find that the client will choose a much more realist price. It’s simple straight forward numbers that forces the client to see the reality of the market.
I’ve found a lot of agents go in and recommend a price and I think that’s okay, and at the same time, taking the time to explain the cma in detail and then allowing the client to choose the price, again takes the emphasis off you, and puts it on the market, which is where we want it. Agents are not the one to determine the value of a home, buyers, and the market are. And conveying this to any potential seller is critical in getting properties priced right.
We tell our sellers right up front that if the home isn’t sold within the first few weeks of being on the market that the interest and activity will slow. In order to gain fresh exposure to new groups of buyers, you will want to continually adjust the price to put yourself into new price brackets.
We update them on a monthly basis of overall market conditions. Each month we update them on a market analysis oft their specific location, and the market as a whole in our area. We provide them with the following statistics every 30 days:
Total number of homes for sale
Total number of homes sold YTD
Average list price of the homes that have sold
Average days on market of the homes that have sold
Average list to sale price ratio
Then we share our personal statistics and the area specific to their home as mentioned above.
I generally email this information to them with a quick letter and a price reduction form for them to sign and send back. Guys, time and again I receive price reduction forms back signed without question!
It’s in how you present it to them at the listing appointment, and taking it OFF you as the agent and putting it on the market. I can’t emphasize it enough to my clients that I am not the one to determine price and neither is any agent. Prices and conditions change consistently especially right now, and the market is what drives everything. As agents our job is to simply educate the client.
A few months ago I wrote a price reduction report for my coaching clients on how to get more price reductions on their listings. If you would like a free copy of this report that got me 11 price reduction in less than a week, please visit our site at www.yourethedifference.com and sign up for the “free real estate report” along the right side of the page.
Also, if you’ve bought our book, Now What Do I Say? There is an entire chapter on price reductions, be sure to read that! If you haven’t purchased a copy of our book please visit our website at www.yourethedifference.com and click on the products page to get your copy. It’s a collection of over 425 answers to over 70 of the most common questions and objections that we face in real estate every day. My partner Scott Friedman and I co-authored the book with another top producing agent, Donna Fleetwood who also sells over 100 homes a year.
Make 2009 YOUR Year!