Listing and selling property efficiently requires several components. One of the fundamental keys is to price a property accurately. Not too high, not too low but in the middle to help the client get the most money possible. The salesperson and the seller must agree on the final number. Often the most important “sale” in the whole transaction is helping the seller price their home correctly the first time.
There is a logical process to helping the seller agree to a realistic price.
Here are some keys to help you be powerful in pricing:
- Know your overall market statistics and have them at your fingertips (volumes, days on market, sale price to asking price).
- Have a hands-on knowledge of the existing inventory, what is selling and what is not (consistently inspect homes in their price range).
- Present the comparables in a simplistic, easy-to-understand fashion (not too much detail). Preferably put them on one page only.
- Tell them the truth. Help them use logic, not emotion when pricing.
- Don’t complicate things. You are the messenger. Help them look at the facts. It is not rocket science.
Finally, if you are going to take a listing and you know it is overpriced, be sure the sellers know this and have agreed to a strategy of reducing the price in two weeks. If your board will allow it, have a post-dated price reduction form signed when you take the listing. No excuses.
Advertising has changed: Digital over traditional media
The Emmy-winning TV series Mad Men is all about the advertising industry and Madison Avenue in the 1960s. It reminds me of the oft-presented objection: “Why aren’t you advertising my home more often?”
It might have been a good question in 1965 but not today. Why not? Because that approach for promoting a property doesn’t work anymore! Consumer habits have changed. Here is an excellent (and modern day) response to that old objection.
- “Mr./Mrs. Seller, let me ask you, nowadays if you wanted to know something would you try and find the answer in a book or would you simply Google it?” (I guess I’d Google it.)
- “Exactly. Would it surprise you to know that in today’s market, more than 93 per cent of homebuyers start out looking on the Internet? Ninety-three per cent!” (Makes sense I guess.)
- “So you can see that if we’re going to get a maximum exposure for your home, we need to move away from traditional approaches and we need to have great coverage on the Internet, right?” (I suppose.)
- “Great. Let me show you how we’re going to do that. Let me show you how our marketing will position your home so the bulk of the qualified buyers are going to find your home easily. That’s what you really want isn’t it?” (You bet!)
Learn this approach. Be current. Let the competition keep watching Mad Men. Help the client see how you are using today’s technology. They’ll love your strategy! No excuses.