Why is list price versus sales price such an important number to know and master in your market?

Here's the answer:

Buyers and sellers need to understand that when they're making or accepting offers, this number will have impact. And I'll give you an example:

Every buyer wants to get a great deal, right? Every buyer wants to feel like they're beating the market. So when we sit with a buyer, we need to educate them about what's happening in the marketplace. For instance, in my market today, sellers are receiving on average 99% of list price. Some are getting much more — they're getting 105% or 106% of list price. But the average in our market is 99%.

So with a buyer, what I'll say to them at the beginning of the relationship is:

"Hey, you know, many homes sell for full price in our current market, or even over full price. But the average is 99%. The key is to see how aggressively the sellers price their home compared to other listings in the area....

Have you ever heard of the aggregation of marginal gains? I hadn't either until I read a story about the British cycling teams winning the Tour de France. They never won the Tour de France before 2010. But their new coach, David Brailsford, challenged them to look at everything they're doing — even the smallest things — to see if there was a way to improve it.

They started with the typical things you'd look at like their diets and exercise programs. But then he went a step further — and started looking at the pillows cyclists were using, the exact time they fell asleep and woke up, their daily routines and more to give them insight into their overall training system.

They figured out that even a 1% increase in any area of efficiency would aggregate marginal gains and finally create wins.

You can do the same thing in your real estate career. You have so many different avenues you're managing, but just getting 1% better in each of these areas can create big wins for...

We see so much marketing that is irrelevant and meaningless — it doesn't resonate with anybody. It's trying to be ironic, cute, and Instagram perfect.

But nobody really cares so these marketing gimmicks fail.

What do our potential clients care about then?

Learning something new — which will always make them stop dead in their tracks and consider your message.

That's the basic idea behind my "Educational Marketing" strategy.

Now let's think of it in terms of real estate:

Not everyone has an interest in real estate. Buyers and sellers usually only get interested right before they're ready to sell their home or buy a new one.

So when a buyer starts to think that they should buy a house, that's when they start to look at all the terms and processes around real estate. Or when a homeowner gets interested in selling, that's when they suddenly get tuned into the market conditions.

That's the power behind using "Educational...

Have you gotten all of your reviews and recommendations from your past clients over the past year? If the answer is no, you're missing a huge opportunity because there's a young, aggressive, and strong agent that's rising rapidly and would like to capture your future clients.

These young agents are listening to podcasts, watching webinars, and they're learning about a secret weapon in the market — and they may be beating you without actually beating you.

Here's what I mean by that:

These young, aggressive agents are capturing reviews and recommendations. And they are hyper-conscious of getting five-star reviews from everyone and anyone who will give them to them. They're making sure that those reviews go on all the right places, which I'm going to outline for you. And what happens is you can have an agent that's only been in the business 2-3 years, but online, they look like they are super experienced because they've stacked up more reviews and...

Want to take a lot of listings rapidly?

The trick to do this is by targeting pre-foreclosure properties. There's 2.7 million homes in America today that are in a pre-foreclosure status. That number is so high because a lot of people have applied for a forbearance due to the COVID crisis, the struggling economy, and not being able to make their house payments.

A forbearance is where the lender gives the owner an opportunity to restructure their loan so they can either move or skip payments then make a balloon payment at the end.

But a lot of people are going into default because they're not able to get caught back up.

Here's the latest numbers we found from principal economist, Yanling Mayer from CoreLogic:

39.1% of all forborne loans are now 150 days behind payment. And 25% are 180 days past due.

Now, I don't say this to scare you that we're in 2009 again. The sky is not falling — and there are many differences between the market we were in then...

The market is changing, we are starting to see double-digit appreciation returning to the marketplace. Unfortunately this can cause some sellers to get ahead of the market and demand prices that are unreasonable. In short some sellers are getting greedy.

As a real estate professional one of our most important jobs is to be be an educator. Try using the "Four Sales" - Script to help educate your sellers:

"We have to sell this home to four different people. We have to sell it to the real estate community, to motivate them to show the home. Then we have to sell it to the buyer. Then we have to sell it to the appraiser and finally we have to sell it to the underwriter for the bank. All of these people will measure your home-based other homes they have seen in the marketplace. Even if one of them agrees to pay over market – it’s unlikely the other three will also agree."

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We are going to wait until spring, or summer, or until we can "get our price".... 

Have you had a seller say these words to you? Sellers often wait for what they perceive to be a better time to sell. They believe that by waiting they will have a market advantage or net more money at closing. 

But waiting is often not in the clients best interests especially if they plan to move up to a more expensive tier of housing. By using the DELTA script you can quickly and easily demonstrate to a seller that waiting not only delays their plans it can also cost them thousands of dollars.

Do you need more leads, more listings, more buyers, and more closings? 

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• Open House Mastery 
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• The Path Performance Coaching Platform

Jim Remley is a nationally recognized expert in the field of residential real estate. Entering the real estate...

In our changing marketing landscape we must adapt our strategy, our sales language, and our approach to advising and consulting with buyer and sellers to ensure they make informed decisions. 

In a traditional market with the normal seasonality of a stronger selling season in the spring and summer and a slower selling season in the fall in winter - many sellers will consider taking their house off the market during the winter, and many buyers may wait for more inventory to arrive in the typical spring and summer surge.  

We are not in a traditional market. The market today is undergoing a transition, a normalization which in many areas means more inventory is quickly flooding back into your local MLS. 

Watch and learn how to coach your clients (buyers and sellers) on why buying a home now is a great idea and why keeping their home on the market is a smart strategic decision. 

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