Positioning Your Listings to Sell New Market Mastery

Positioning Your Listings to Sell New Market Mastery Program

Workout Agenda § § § Sellers’ View of the Market Your View Key Challenges New Strategies Rehearsal for Price Improvement Discussions Action Plan

What are Sellers thinking about the market?

Understand the market from the Seller’s point of view. Why hasn’t my house sold? I know what’s sold in my neighborhood. What market shift? That article wasn’t talking about MY town My house is better! This is just a seasonal thing.

That’s their perception. You know what’s really happening in the market.

Today we’ll share a proven method for influencing your Sellers to improve their price using a new tool, the Market Update.

Let’s try something. . . § Look at your completed Seller Situation Forms (the listings you’re currently servicing) § What price do you think the listing will actually sell for? Be honest. § Write down next to each listing what you think the “real” price should be.

How many of your listings are priced to sell?

Key Challenges What’s preventing us from securing more price improvements to get our inventory sold?

Workout Session Our plan today is to work on some of the challenges you’re facing. AND Conduct a “rehearsal” for an actual meeting you’re going to have with your Sellers.

Why use the Market Update? It Works! “I have a listing in a development of 95 homes and 7 are currently on the market. We listed for 30 days at $550, 000, a price that was right in the middle of my recommended price range. When I approached them (the sellers) for a price improvement they wanted to move down to $535, 000. But after reviewing the Market Update with them they agreed to my new suggested price of $499, 900. We had a full price offer five days later. ” - Dena Paolucci (Princeton, NJ)

Why use the Market Update? It Works! “I have used the Market Update for many of my listings…When people can see something in front of them in black and white, the conversation is focused. Sellers can see the impact of market trends, such as absorption and interest rates, and the effects of such trends. Through these presentations I have improved the price accordingly and ultimately gotten the listings sold, which is everybody’s goal. ” - Jill Fusco-Wrede (Landing, NJ)

Securing the Appointment Let’s try this dialogue: “Mr. Anders, this is Jack Waters from Weichert, Realtors. There are some things happening in the local real estate market that we need to discuss. It’s about time we meet to talk about how we’re going to get your house sold. Can you come in on Thursday or would Friday work better for you? ”

“Start with the Vacant Houses” § Prioritize your listings. § Work FIRST with the most motivated sellers. § This gives you a “quick win” and puts you ahead faster. Look at your Seller Situation forms: Who are YOUR “motivated sellers? ”

The Price Improvement Meeting 1. Establish Rapport 2. Share Your Agenda (Use Market Update) 3. Follow Your Agenda (Use Market Update) 4. Ask for the Price Improvement Reconnect with your Seller and their motivation for selling. Ask about the kids, the dog, etc. Thank them for agreeing to meet. “How are your plans coming along? . . . “ “Ann and Richard. . . Today, I wanted to discuss with you three things: a. What’s Happening in this Market b. Progress in Marketing Your Home c. A Plan for Moving Forward How does that sound? ” Show you do what you say you’ll do! Defer to stay on track – “That’s a valid concern. We’ll come back to that, but first I want to finish sharing what’s happening in the market. ” “We need to reposition your property so it will sell. ”

Tools for Conducting the Meeting Sellers Control Sheet 5 5 1 2 2 2 M M O DO D 5 0 4 4 2 2 270 280 MLS Printouts

Observer’s Checklist Now that we’ve reviewed the flow of the meeting and the tools to use, let’s look a little closer at the specifics… Let’s review the Observer’s Checklist

Demonstration Let’s follow along with the checklist as we see the demonstration. Check off when you see the associate do any of the steps here. Conduct demonstration

Establish Rapport § Reconnect with the seller and their motivation for moving Demonstration

Market Update Demonstration

Agenda • What’s happening in the market • Progress in marketing your home • A plan for moving forward Demonstration

What’s Happening in this Market Demonstration

What’s Happening in the Market • • • Supply is greater than demand Fewer active buyers More homes on sale than just a year ago Buyers have choice Market absorption rate has steadily increased over the past few months. . . Demonstration

Sample Market Absorption Rate Anytown, USA 117 current active listings 23 reported sales in last 30 days 5. 1 = months absorption rate The absorption rate is the number of months projected to deplete the existing inventory of homes based on current monthly sales. In the example above, it would take slightly more than 5 months to sell the existing inventory of homes. Demonstration

Market Absorption Scale (Absorption Rate in Months) 5 -6 months absorption rate indicates a normal market. Demonstration

2005 Buyers Buyer Profile • First-time homebuyers • Trade-up buyers • Transferees • Investors Buyer Mentality • Tremendous return on investment • High sense of urgency • Buying over their heads • High confidence in national and local economy • Multiple offers were normal Demonstration

2006 Buyers Buyer Profile • First-time home buyers priced out of the market • Fewer trade-up buyers • Transferees fewer and more reluctant to commit to purchasing • Speculators and investors not in the market Buyer Mentality • Real estate represents a place to live, rather than an investment • Low sense of urgency • Conservative with personal spending • High energy costs create obstacles • Concerned the real estate market will devalue Demonstration

Listings from the MLS in Weichert Market Areas Demonstration In our local area (CT/NY/NJ. Lehigh Valley, PA), the number of homes for sale (Weichert and non-Weichert listings) has steadily increased over the past three years.

The Otteau Report comes from an objective, third party appraisal company that provides regular market updates to developers and consumers. Demonstration

The Otteau Report comes from an objective, third party appraisal company that provides regular market updates to developers and consumers. Demonstration

Key Market Statistics Week Ending 11/11/2006 Total Listings Under Contract Last 30 Days Absorption Rate Hopatcong 184 17 10. 8 Roxbury 197 20 9. 8 Mount Olive 198 12 16. 5 Netcong 18 2 9 Stanhope 41 3 13. 7 Town Demonstration

The Effect of Interest Rates on Buying Power What can I buy for $2, 500. 00 per month? Demonstration Source: Weichert Financial Services, 2006. Based on a 30 -year fixed rate mortgage.

Market Scale for Supply & Demand Normal Low Supply/High Demand 1 2 3 4 Normal Market Absorption in Months High Supply/Low Demand 5 6 7 8 9 10 11 12 Weichert has been studying market conditions for more than 3 decades and has found a direct correlation between market absorption and property values. As absorption rates increase beyond a normal market level of 5 -6 months, property values depreciate annually. Demonstration

Demonstration

Let’s look at your competition • Properties currently in competition with yours for buyer attention. • Properties that have caught buyer attention in the last 30 days. • At this rate, how many months will it take for the current buyer demand to absorb the current listing supply in this sector of the market? Demonstration

How would you like your home to be positioned in the market? Stop Here

There’s More… We’ll stop here because this is usually where your Sellers will be ready to take action

Demonstration Debrief How did the Sales Associate: § Demonstrate the current state of the market § Engage the Seller in the discussion § Convince the Seller to take action now by repositioning their home to sell § Which tools were particularly effective?

Let’s Rehearse At your tables: § One person will be the Associate § One person will be the Seller § One person will be the Coach § One person will be the Observer We’ll repeat each round of rehearsal to give all Associates a chance to practice

Coach’s Role § Your role is to help the Associate get better. § Observe and listen. § Use the Observer’s Checklist! § Take thoughtful notes § The Coach ALWAYS plays the role of the Coaches, please raise your hands!

Feedback Discussion After you finish each rehearsal, the Coach will conduct a feedback discussion: • Start with the Associate who practiced: What do you think you did well? What would you consider for next time? • Then ask the Seller: What worked well for you? What would you suggest for next time • Observer: What did the Associate do well? What should s/he consider for next time? • Coach: What did the Associate do well? What should s/he consider for next time?

The Price Improvement Meeting Let’s Rehearse: Establish Rapport & Reconnect with the Seller’s Goals 1. Each “Associate” will take a turn at establishing rapport and reconnecting with the Sellers Goals. Decide who will be the “Associate” in Round 1. 2. Associate “rehearses” the first portion of the meeting with the “Seller” – then STOP 3. Seller – receive a briefing from the Associate on the Seller (use the Seller Situation form) 4. Coach and Observer take notes using the Observer’s Checklist Practice: 10 minutes Then click to next slide

Feedback Discussion • Start with the Associate who practiced: What do you think you did well? What would you consider for next time? • Then ask the Seller: What worked well for you? What would you suggest for next time • Observer: What did the Associate do well? What should s/he consider for next time? • Coach: What did the Associate do well? What should s/he consider for next time? • Share feedback for each “Associate” who practiced Feedback: 5 minutes Then click to next slide

The Price Improvement Meeting Let’s Rehearse: Establish Rapport & Reconnect with the Seller’s Goals Round 2: Switch roles. • Associate “rehearses” the first portion of the meeting with the “Seller” – then STOP • Seller – receive a briefing from the Associate on the Seller (use the Seller Situation form) • Coach and Observer take notes using the Observer’s Checklist Practice: 10 minutes Then click to next slide

Feedback Discussion • Start with the Associate who practiced: What do you think you did well? What would you consider for next time? • Then ask the Seller: What worked well for you? What would you suggest for next time • Observer: What did the Associate do well? What should s/he consider for next time? • Coach: What did the Associate do well? What should s/he consider for next time? • Share feedback for each “Associate” who practiced Feedback: 5 minutes Then click to next slide

The Price Improvement Meeting Let’s Rehearse: Establish Rapport & Reconnect with the Seller’s Goals Round 3: Switch roles again. • Associate “rehearses” the first portion of the meeting with the “Seller” – then STOP • Seller – receive a briefing from the Associate on the Seller (use the Seller Situation form) • Coach and Observer take notes using the Observer’s Checklist Practice: 10 minutes Then click to next slide

Feedback Discussion • Start with the Associate who practiced: What do you think you did well? What would you consider for next time? • Then ask the Seller: What worked well for you? What would you suggest for next time • Observer: What did the Associate do well? What should s/he consider for next time? • Coach: What did the Associate do well? What should s/he consider for next time? Feedback: 5 minutes Then click to next slide

The Price Improvement Meeting Share Your Agenda (Use Market Update) “Ann and Richard. . . Today, I wanted to discuss with you three things: a. What’s Happening in this Market b. Progress in Marketing Your Home c. A Plan for Moving Forward How does that sound? Follow Your Agenda – What’s Happening in this Market 1. Decide who will be the “Associate” in Round 1. Associate “rehearses” Share Agenda & What’s Happening in this Market – then STOP 2. Another plays “Seller” – receive a briefing from the Associate on the Seller (use the Seller Situation form) Practice: 15 minutes 3. Coach and Observer take notes Then click to next slide using the Observer’s Checklist

Feedback Discussion • Start with the Associate who practiced: What do you think you did well? What would you consider for next time? • Then ask the Seller: What worked well for you? What would you suggest for next time • Observer: What did the Associate do well? What should s/he consider for next time? • Coach: What did the Associate do well? What should s/he consider for next time? Feedback: 5 minutes Then click to next slide

The Price Improvement Meeting Share Your Agenda (Use Market Update) “Ann and Richard. . . Today, I wanted to discuss with you three things: a. What’s Happening in this Market b. Progress in Marketing Your Home c. A Plan for Moving Forward How does that sound? Follow Your Agenda – What’s Happening in this Market Round 2: Switch roles. • The Associate “rehearses” Share Agenda & What’s Happening in this Market – then STOP • Another plays “Seller” – receive a briefing from the Associate on the Seller (use the Seller Situation form) Practice: 15 minutes • Coach and Observer take notes Then click to next slide using the Observer’s Checklist

Feedback Discussion • Start with the Associate who practiced: What do you think you did well? What would you consider for next time? • Then ask the Seller: What worked well for you? What would you suggest for next time • Observer: What did the Associate do well? What should s/he consider for next time? • Coach: What did the Associate do well? What should s/he consider for next time? Feedback: 5 minutes Then click to next slide

The Price Improvement Meeting Share Your Agenda (Use Market Update) “Ann and Richard. . . Today, I wanted to discuss with you three things: a. What’s Happening in this Market b. Progress in Marketing Your Home c. A Plan for Moving Forward How does that sound? Follow Your Agenda (Use Market Update) Round 3: Switch roles again. • Associate “rehearses” Share Agenda & What’s Happening in this Market – then STOP • Another plays “Seller” – receive a briefing from the Associate on the Seller (use the Seller Situation form) Practice: 15 minutes • Coach and Observer take notes Then click to next slide using the Observer’s Checklist

Feedback Discussion • Start with the Associate who practiced: What do you think you did well? What would you consider for next time? • Then ask the Seller: What worked well for you? What would you suggest for next time • Observer: What did the Associate do well? What should s/he consider for next time? • Coach: What did the Associate do well? What should s/he consider for next time? Feedback: 5 minutes Then click to next slide

Debrief Was this helpful? Any insights from this process?

Strategies § Start with the most motivated sellers first. § Build rapport and re-connect to the sellers’ goals and motivation for selling § Stick to your Agenda § Listen and Empathize § Defer to Stay on Track § Explain what you mean by “inventory, ” “market absorption rate, ” “Buyer’s Market, ” and any other terms that might be unfamiliar to the Seller

Strategies § Ask questions to engage the Seller: § “What is your impression of the market? ” § “Have you seen this article? ” § “What does this graph tell you about the market? ” § “Can you read the bottom number…I can’t make it out from here. ” § Share facts from big picture to PTA to seller’s house and how it’s positioned in the marketplace Your conviction and belief are key!

Go to Weichert University For more dialogue, tips and strategies. If you have more, share them with us and we can post them on line! Look at: Asking for the Price Improvement www. Weichert. One. com and click on Weichert University

Action Plan 1. Call your Sellers. Make the appointments to meet. 2. Conduct a minimum of THREE meetings with your Sellers 3. Bring copies of your price change forms to our next session. 4. Next Meeting: ________

Thank you for your active participation and focus today!