It's hard to believe, but sellers are greedy. We all are, right? When we sell our homes, we want the maximum amount we can get.
The problem is that many agents will "buy" a listing, especially in this desperate market. We're finding listings, but many agents are hanging on by their fingernails, willing to do anything to get a listing. That's not how we do business. We need a script that addresses the greedy seller.
Here's a script I'll call the "100% Script." If I'm sitting across the table, I can say…
“You know what? Many people don't realize this, but statistically, in our market, only about 60% of the time do listing agents sell the listing the first time. They list it, put it on the market, do the marketing, but then the home doesn't get an offer or the right offer, and you have to list it with another REALTOR. I don't want to do that with you. I don't want to waste your time or effort. I want to give you a different experience because my goal is to sell 100% of the...
Hey guys, price drops have hit an 18-month high. Here are three stats you need to know:
When analyzing the market, we consider supply versus demand. We still have very low supply, but demand is decreasing due to high interest rates and record-high home prices. This combination makes affordability tough for many home buyers.
When discussing this with sellers, it's important to explain that a market can have pricing power or pricing pressure. For years, sellers had pricing power due to low supply and high demand. Now, with demand dropping, pricing pressure is entering the market.
The best time for a price adjustment might be surprising—it's at the listing appointment. At...
Okay, guys, here's an important question regarding this NAR settlement and everything around it:
We are going to have to start having buyer representation agreements. In that agreement, it's going to say how much you're going to get paid, right? You’ve established what you charge sellers a long time ago, but now you've got to do it with buyers.
What's going to be your minimum commission standard with a buyer?
First of all, accept the fact that you have value and that you are worth more than some other agents in your community. So, you're not going to base your number on what another real estate agent is doing. Maybe they're brand new or barely active.
Instead, you need to base your numbers on the services you provide and your experience.
But here's a bad tendency with a lot of agents: They're going to undershoot their value.
They may say, "I don't want to be greedy, so I'll come in lower."
But don't go too low. There's still going to be sellers offering buyer agent...
Hey, team, got two game-changing ideas for your upcoming Comparative Market Analysis (CMA). As you gear up for the next week or two, consider adding these to your arsenal.
Number one: Identify the strongest competitor and share this insight with the seller. During the CMA, explain, "Mr. and Mrs. Seller, we're diving into a CMA, much like an appraisal. Analyzing three sold properties, three active ones, and three that didn't sell. My suggested price is based on this, but I want to highlight a key competitor. This is the one we need to go head-to-head with. Buyers are likely considering these two listings, so let's be super competitive."
Number two: Distinguish between an as-is price and an improved price, especially for properties needing a bit of work. Frame it this way, "Like an appraisal, we can provide an as-is or an improved price. If we list it as-is, aggressively priced to sell, we're looking at this range. However, if you invest in a few improvements, I've got great...
Today I want to talk to you about the current state of the real estate market:
There's 67% more inventory on the market today than there was a year ago at the same time, which is more than before, but we still need way more inventory than we have today. When you start to see listings linger, you need to remember that there are two types of markets: listings that come into the market and sell instantly with multiple offers still happen today, but then you have another group of listings that hits the market but then just lingers.
When you're talking to sellers at a listing appointment, it's important to talk about being competitive or looking at comparable sales data. Comparative versus competitive sales data is a very important concept that most REALTORS never talk about with their seller clients.
A comparative market analysis, or CMA, is what most REALTORS use to determine a home's value compared to...
I have a challenge for you today:
I want you to imagine that you're a buyer who just landed in your area and has no knowledge about any REALTORS in the marketplace. So, go ahead and search for homes for sale in your market and see what happens. You'll likely be directed to realtor.com or Zillow. Now, pretend you're a buyer and go through the process of searching for a home on these websites.
As you go through the process, you'll notice that the algorithms push you through a funnel. The first thing they'll ask you is what price point you're looking for. They'll give you a list of price points to choose from, and very rarely will buyers type in a specific price. Instead, they'll be guided to choose a range from a dropdown menu.
Then, the algorithms will ask about bedrooms, bathrooms, and square footage before pushing the buyer further into the system. It's important for us as REALTORS to understand how the algorithms...
I have a concept called "anchor point pricing."
Here's what it means:
During a conversation about price with a seller, I bring up the neighbor down the road who listed their property but didn't really want to sell it. They overpriced their house and have been chasing the market down with four price reductions in the last 90 days. Their home has become stigmatized and people think there's something wrong with it, no matter how low they price it.
I never want that to be the case for my clients, and you shouldn't either.
In this market, first impressions are critical:
The longer a property is on the market, the less it gets.
That's why we use anchor point pricing. Every time potential buyers drive by the overpriced neighbor's listing, they're reminded that they don't want to end up like that person. This conversation can be powerful when someone is on the fence about overpricing their property.
Want more secrets like this that...
Hey guys, when we're talking to a seller and we're having this conversation about price—because price is the ultimate marketing tool that we have—sometimes it's hard for sellers to understand the relationship between the price and interest rates.
So I wanna give you some scripting and some dialogues along these lines, which is really important. And it's focusing on the difference in affordability for buyers and really how most buyers are payment focused.
So if I'm sitting with a seller, I might say:
"Now you've probably been hearing that the interest rates have been rising. But I wanna relate that to what that means to a buyer for your home. So the beginning of the year, interest rates were pretty much at 60-year lows or around 3% level. And since the beginning of the year, we've really more than doubled. We're now pushing 7% and we're probably gonna be over 7% very soon.
And so here's what...
I have an important concept for you as we're coming into this challenging market with interest rates.
So I want you to think about something I call parity pricing. Let's paint a picture:
Imagine you're a buyer now. You have a $400,000 budget to buy a house. And you found one and got it in contract. Your budget for your payment is $1,767 a month. That's for principal and interest — we won't worry about taxes and insurance for this kind of demonstration.
So how we came to that number is if we were buying a home in April and we were lucky enough to get a 5.25% interest rate back then, that's what that payment would equal. But fast forward to today, we were shooting this around September where interest rates have shot up to 7.25%. In order for that buyer who only has a budget of $1,767 a month, or for that buyer to buy a house based on today's interest rate, how much would the seller have to come down to get to a parity...
Are you doing a weekly call to all your sellers? If you haven't started doing this, this is something you need to be doing. And as you take new listings, you need to just create this expectation that you're going to call them every week.
My preference is on Monday. I want to get the week started off right. And having my Monday morning power hour, where I call sellers, is super important in my business plan.
So why do we make calls to our sellers every Monday?
Because we need to earn the right to be able to ask for price adjustments, condition improvements, or incentives if they're needed in order to get the property sold.
The market's changing and not every single listing you bring to the market is going to sell instantaneously anymore. Often we're going to have to make some adjustments in the condition, price, or incentives we're offering.
Here's how you handle that conversation with the seller:
I'm going to start by saying, "Hey,...
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