Price Improvement Get the right price to sell

Price Improvement Get the right price to sell

You have a choice to make. OR

Today’s Agenda • • • Sellers View of the Market Your View Four Steps to Success in Securing a Price Improvement. Addressing Sellers’ Concerns Follow-up and Service the Listing Action Steps

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.

Let’s be honest. . . If we know the house is not priced to move in the market, then why don’t we ask for a price improvement? • Please write down on the card the #1 reason YOU don’t ask for the price improvement. • This is completely anonymous. • I’ll collect all the cards in a minute. Shuffle them up and re-distribute them for a quick exercise.

Why Don’t We Ask for the Price Improvement? There are only two reasons why people don’t perform. They either. . . Can’t do it SKILL OR Don’t want to do it WILL (Often it’s a combination of both and often Skill drives Will)

Taking Action means you have to be Strong in both these areas: SKILL WILL If you’ve got the SKILL and the WILL then. . . you’re ready, willing AND able.

Sales Associate Handout Please use this handout to follow along and take notes. We’ll be sharing a lot of good ideas, tips, strategies and dialogue to use. Please don’t flip ahead! Turn to page 3.

Taking Action means you have to be Strong in both these areas. SKILL WILL q Trained on how to ask for the price improvement q Understand the “why” and “how” q Have experience asking for the price improvement. q Want to ask for the price improvement q Confident about doing it q See no risk in doing it q Motivated to do this because the house will finally get sold. Can you check each one of these boxes? If all this applies to you, you’re ready, willing AND able.

Taking Action means you have to be Strong in both these areas: SKILL • • • WILL Let’s re-distribute the cards. I’ll call on a few people to read their card. We’ll discuss if it falls under Skill or Will.

Why Don’t We Ask for the Price Improvement? • If you invest in stocks and the stock goes down, What does the stock broker say? ? • Do you get a call from your stock broker apologizing for this? • Does the stock broker say, “Okay. . . I’ll cut my commission to make up for your loss”?

Got a Monkey on your back?

Why Don’t We Ask for the Price Improvement? • • Lots of reasons why we don’t do this. Some on the Skill side, some on the Will side. Did you know that Skill drives Will? Can you give me an example of a time when you learned something for the first time and you weren’t very good it?

Four Steps to Success Step 1: Do Your Homework! (Skill Drives Will) Step 2: Make the Appointment Step 3: Conduct the Meeting Step 4: Secure the Price Improvement

Step 1: Do Your Homework! What do we mean by “Do Your Homework? ” How do YOU prepare? ?

Step 1: Do Your Homework! • Sellers Control Sheet • Updated Price Trend Analysis • MLS sheets of active listings of “like” homes – marked in RED # of days on market • Summary of price changes and expireds in past 30 days. • Market absorption rate • Supporting articles, news, on line reports, etc. • Sales Manager’s written comments on pricing if not at meeting • Price Change form

Seller’s Control Sheet

Who has used the Sellers Control Sheet? How have you used it?

It’s not about you, it’s about the market New Price Trend Analysis

Who has used the Price Trend Analysis to get a Price Improvement? How did it go?

Step 1: Do Your Homework Complete a Price Trend Analysis a. Research the MLS for similar properties from 12 mo, 6 mo, under contract and active b. Include the ‘Days on Market’ for each category c. Enter the data into the Enhanced PTA calculator d. Print the new PTA form

Step 2: Make the appointment • Call the Seller • Structure your dialogue • Secure the appointment

Step 2: Make the appointment Structure Your Dialogue: • Greet and Identify “Hi, Richard. This is Phyllis Bixon with Weichert, Realtors. ” • State your purpose “There are some things happening in our local market that we need to discuss. It’s important we meet as soon as possible. ” • Set a time “Would Tuesday evening work for you or any time on Thursday? ”

Think about the Seller Before we get to conducting the meeting. . . Let me ask you ONE question. Why do Sellers Sell? ?

Think about the Seller • • • Bigger House Retirement Relocate Divorce These are all life style changes Think about why YOUR Seller needs to sell. Bring this into your discussion. Remind them of why they’re selling in the first place.

Think about the Seller is moving to Florida. When do you go in for the price improvement? What do you bring with you? What have YOU done to reconnect the Seller to their goal?

Step 3: Conduct the Meeting What’s your goal here? Keep the goal in mind. This is not just an update. $uccess = Price Improvement! Improvement

Step 3: Conduct the Meeting a. Establish Rapport Reconnect with your Seller. Reconnect with their reason for moving. Ask about the kids, the dog, etc. Thank them for agreeing to meet. b. Share Your Agenda “Ann and Richard. . . Today, I wanted to discuss with you three things: • What’s Happening in this Market • Progress in Marketing Your Home • A Plan for Moving Forward How does that sound? ” c. Follow Your Agenda Show you do what you say you’ll do! d. Ask for the Price Improvement

Step 3: Conduct the Meeting What’s Happening in this Market 12 Months ago Listings like Yours Now Listings like Yours

Step 3: Conduct the Meeting What’s Happening in this Market Take Control – Start the Meeting “I’d like to start out the meeting by updating you on certain significant developments in the market. ”

Step 3: Conduct the Meeting What’s Happening in this Market • Print out all active listings in price point individually • Mark days on market in red. Keep updating the active listings as days go by. • “I’d like to show you what’s going on in our town. This is unbelievable. Just look at the days on market on some of these properties!” • Place them one by one across the dining room table. 5 1 2 M O D 5 4 2 280

Step 3: Conduct the Meeting What’s Happening in this Market “Since we last spoke, I’ve updated the Price Trend Analysis. Look at these side by side. The direction is clear. . . ”

Step 3: Conduct the Meeting What’s Happening in this Market If it supports your view of the market. . . • Print out listings – Which have expired past 30 days and/or – Will expire next 30 -45 days • Print out summary of price changes past 30 days

Step 3: Conduct the Meeting Progress in Marketing Your Home • “Let’s talk about how I’ve been marketing your home. ” • Use Week 4 of the Seller Control Sheet as your agenda. Sellers Control Sheet

Step 3: Conduct the Meeting Progress in Marketing Your Home “Since we last spoke, here’s what I’ve done and the feedback we’ve received. . . ” q q q Calling Open House Invitations Door Knocking Mailings Marketing (on line and newspaper) Buyers Seminar, prospect feedback, Etc.

Step 3: Conduct the Meeting A Plan for Moving Forward “Now that we’ve just reviewed what’s happening in this market and progress on marketing your home, we need to discuss a plan for moving forward. . . What are your thoughts. . . • About the market? • Where your property is positioned in this market? ” Why are we asking these questions?

Step 3: Conduct the Meeting A Plan for Moving Forward “What are your thoughts. . . ? ” Why are we asking these questions? • Involve them in the conversation. Invite them to share their thoughts first. • It’s better to know what’s in their minds before presenting your thoughts. • It will influence how you say what you need to say!

Step 3: Conduct the Meeting A Plan for Moving Forward “We need to look at how we are pricing this house. We want to price it to sell. It’s my recommendation we move to a completely different price range to open this up to more buyers. What are your thoughts on this? ”

Step 3: Conduct the Meeting A Plan for Moving Forward This is the critical point of the meeting. • • Remember, you did your homework. You know the market. Don’t get defensive You’re trying to help them move on with their lives.

Feelings are important Do Don’t • Acknowledge • Discount • Reflect • Ignore • Listen • Minimize • Turn to page 16 of your handout. • Think of a situation in which you Acknowledged, Reflected and Listened. • Break into pairs and discuss the situation and what you did to apply these skills.

Role Play Conduct the Meeting Let’s do a role play on the four steps of conducting the meeting. 1. Who here has brought their Seller File? You will play the Sales Associates. You will need this file to present your information on What’s Happening in the Market. The rest will split up into Sellers & Observers. 2. We’ll have one person play the Sales Associate, one play the Seller and one play the Observer. Let’s break into our trios now. 3. Your “roles” are described on page 17.

Role Play Conduct the Meeting Sales Associates, you complete the steps below: a. Establish Rapport Reconnect with your Seller. Ask about the kids, the dog, etc. Thank them for agreeing to meet. b. Share Your Agenda “Ann and Richard. . . Today, I wanted to discuss with you three things: a. b. c. What’s Happening in this Market Progress in Marketing Your Home A Plan for Moving Forward How does that sound? ” c. Follow Your Agenda Show you do what you say you’ll do! d. Ask for the Price Improvement Practice: Feedback: Then Switch! Just STOP once you’ve asked for the Price Improvement. We’ll handle concerns next. 15 Minutes

Role Play Conduct the Meeting 1. Observers will watch and take notes. 2. The Observer’s Checklist is on page 18. Observers: Your job may be the most difficult. To be effective observers you have to take notes, check off when you see the Associate complete a step and write notes on the bottom for what they did well and what they can consider for next time. 3. Sellers will give the Sales Associates a realistic skills practice. 4. Observers, you will conduct the feedback session.

Role Play Conduct the Meeting Sales Associates, you complete the steps below: a. Establish Rapport Reconnect with your Seller. Ask about the kids, the dog, etc. Thank them for agreeing to meet. b. Share Your Agenda “Ann and Richard. . . Today, I wanted to discuss with you three things: a. b. c. What’s Happening in this Market Progress in Marketing Your Home A Plan for Moving Forward How does that sound? ” c. Follow Your Agenda Show you do what you say you’ll do! d. Ask for the Price Improvement Practice: Feedback: Then Switch! Just STOP once you’ve asked for the Price Improvement. We’ll handle concerns next. 15 Minutes

Observers Conduct the Feedback Session • Start with the Sales Associates: Ask him/her what worked well? • What would the Associate consider doing differently next time? • Then ask the Sellers: What did you think? • Observers, Share Your Feedback Last: What did the Sales Associate do well? • What should they consider for next time?

Role Play – Let’s Review • Sales Associates: How did the practice go? What worked well? • What would you consider doing differently next time? • Sellers: What did you think? • Observers: What did the Sales Associate do well? • What should they consider for next time?

Common Objections or Concerns What are some common responses from Sellers when you suggest a price improvement? [Could I get someone to help me flip chart these? ]

Common Responses Seller says: “I’d like to wait. . . This is just a seasonal thing. ” “I won’t accept anything lower than XX. ” “My house is worth more than that. ” “Look, I don’t have to sell. I’ll take it off the market. ”

Addressing Seller Concerns Group Activity 1. We’ll do a round-robin style exercise. I’ll toss the ball to someone who will address a typical seller concern. 2. You can consult with the people at your table for 1 minute and address the concern. 3. We can discuss our strategies for handling the concern. 4. After the first person goes, they can toss the ball to whomever they would like. Any questions?

Addressing Seller Concerns Seller: “Maybe I should just take the house off the market. ” What would YOU say? Sales Associate: “Given where the market is currently trending, you’re better off to get it sold now rather than ride the further market decline. ”

Addressing Seller Concerns Trade Up Seller: “Maybe I should just take the house off the market. ” What would YOU say? Sales Associate: “As a trade up buyer, it’s actually never been more affordable for you to trade up then right now! Let me show you. . . ”

In recent years, “It’s never been more affordable for the ‘Trade-up’ buyer. ” Example: $300, 000 $500, 000 $270, 000 $450, 000 $180, 000 [market depreciating at a rate of -10%]

Addressing Seller Concerns Seller: “This is just a seasonal thing. ” What would YOU say? Sales Associate: “Listing Supply has been consistently increasing throughout the year with demand tapering since September. ” [Show monthly active listing chart. Show market absorption rates by month. ]

Addressing Seller Concerns Seller: “What’s caused this sudden change in the market. ” What would YOU say? Sales Associate: “A number of factors. . . Home heating costs and gasoline prices have impacted affordability. ”

$352. 33 increase/month [2004 to 2005]

Addressing Seller Concerns Seller: “What’s caused this sudden change in the market. ” What would YOU say? Sales Associate: “A greater number of homeowners trying to cash out on the boom as well as investors in the market created a significant increase in inventory supply. With more listings, buyers have more to look at which slows down the buying process and gives them greater control of the market. ”

Addressing Seller Concerns Seller: “What’s caused this sudden change in the market. ” What would YOU say? Sales Associate: “First time home buyers have been priced out of the market. Without them, you don’t have the step ups. ”

Addressing Seller Concerns Sales Associate: Seller: “I’ve already dropped my “Other sellers have, too. Given list price. ” the new listings that have come on to the market combined with other sellers adjusting list prices, What would we need to reassess our YOU say? competitive pricing. ”

Addressing Seller Concerns Let’s look at the other concerns we brainstormed earlier on the flip chart. Which ones here didn’t we discuss? Let’s toss the ball for some possible responses to these.

Go to Weichert University For more dialogue, tips and strategies on growing your business in this market, check out the new Weichert Toolkit www. Weichert. One. com and click on Weichert University

Current Market News

Step 4: Secure the Price Improvement

Step 4: Secure the Price Improvement What is your goal here? Re-position property list price in a different price range to target a new group of buyers.

Step 4: Secure the Price Improvement It’s not about reducing the price by X%, it’s about positioning the house to sell!

Step 4: Secure the Price Improvement What’s the difference between a Price Reduction and a Price Improvement? It’s a Price Improvement if it repositions the property to bring more buyer flow.

Step 4: Secure the Price Improvement Reposition property List Price in a different price range to target a new group of buyers q Price must be adjusted a minimum of 5% and/or q Price re-positioned in a new range For Example: Current Price 5% reduction $649, 000 $617, 450 New Range $599, 000

Step 4: Secure the Price Improvement “Price as close to what you’re willing to sell. ” In a buyer’s market: Myth You need room to negotiate. Reality: Reality You need an ultra competitive list price to draw traffic/buyer flow to the property. Period.

Price to hit the market not chase it Your Listing Market

Follow up & Service the Listing 1. Keep in weekly communication with the seller 2. Meet in person with the seller minimally every 4 weeks 3. Be armed with the facts, update weekly/monthly 4. Improve list price every 30 days

Action Steps 1. 2. Follow the four steps to success: Step 1: Do Your Homework! Step 2: Make the Appointment Step 3: Conduct the Meeting Step 4: Secure the Price Improvement Go to Weichert University’s Weichert Toolkit for more ideas and suggestions. I’ll help you every step of the way.

All that’s left is for you to take action!

Open Discussion Questions and Answers

Thank you!