Thursday, March 23, 2017

Dialogues to Help Get Your Listing Priced Right the First Time

by Julie Escobar

Getting past what the seller THINKS their home is worth to what the market will bear is sometimes a little tap dance in sales skill for agents. To help the cause, I pulled a few excerpts from our 21 Ways to Get Your Listing Priced Right eBook, and tapped a few friends for some powerful dialogues and strategies that can help you get sellers to sign on the dotted line.

Here are a few:

  1. The Waiting Game: Use when a seller wants to wait to lower the price:  Dialogue: “Let me ask you, what do you think happens to an overpriced home that doesn’t sell right away?  Do you think it eventually sells?  More often than not, the answer to that is no.  Listings get the most traction in terms of buyer traffic, agent attention and offers in the first 2-4 weeks after coming on the market.  If you wait, you’ll lose that traction.  Worse than that, the longer it sits on the market, the more buyers will begin to wonder if there are more serious problems than price in terms of why it hasn’t sold yet.  Think about it… what’s the first question you would ask when you look at a new house?  How long has it been on the market – right?  Long time on market = problem in the eyes of a buyer.  In this market, or any market – that’s not a position that can give you any kind of leverage.  Let’s price it right and get it sold.”
  2. Pick a Price: This is a good strategy to use when a seller says another agent would take it at an over inflated price.  “Mr. and Mrs. Seller, I appreciate that you want to get the most from your home, and I know the other agent told you he’s list it at that higher price.  Now, what I don’t know is how he/she could have gotten that number.  You know as agents, it’s not like we can really just ‘pick a price.’ When I brought you what I felt was the right asking price for your property it was based on many facts and factors such as what other similar homes in this area have sold for, the age and condition of your property, the location, etc.  So, it’s not a guess – it’s based on real market value. So, what I’m saying is as a Realtor who has your best interests at heart, I’m not going to pick a price out of thin air, and I can’t in good conscience just tell you the figure you want to hear in order to take the listing.  I will tell you that if you really want to get your home sold quickly, get the most money possible in this market with the least amount of headaches – we should ‘pick’ a price that’s based on those facts and figures.  Agreed?”  Have your comparables there to illustrate how you arrived at your suggested list price.
  3. The Dollar Bill Close from our friend Darryl Davis: When faced with this classic: “My home is special – I did all of these improvements myself, so it’s worth much more than what others are listed for! I would say, “Mr. and Mrs. Seller, I certainly understand how you feel. But let me ask you something. If I were to give you one hundred $1 bills that were crisp, clean, beautiful, and hot off the presses – and I sent you to the mall and asked you to sell them for 95 cents you’d probably sell them pretty quick wouldn’t you? And if I asked you to sell them at 85 cents even quicker – right? Now, what if I asked you to sell each for $1.10? You probably wouldn’t sell any – am I right? The point is that no matter how crisp clean and beautiful your house is, you can’t sell a dollar for $1.10. Now let’s say there are only two dollar bills – one crisp clean beautiful and one that’s ratty, old, stained and dirty. If you had a choice which would you choose first? The clean one right? So, what I can tell you is that while all the wonderful improvements you’ve made won’t mean it will sell for more, it does normally mean it will sell before the others.”
  4. Reduce the Price or Cancel (A favorite from Floyd Wickman.) Sometimes a good way to get a price reduction is by offering to cancel the listing. This is from Floyd’s 101 Dialogues.  “Mr. & Mrs. Seller, the reason I asked to come by tonight is that we had a meeting concerning your home in our office.  And I think in attendance we had collectively, about 70 years of real estate experience and we all agreed that if we were to keep your home on the market at the current price, well, it would be like not having it on the market at all. So, the reason I wanted to come by is that I brought over two forms for you to look at.  The first form I brought with me is what we call a Price Change Form.  It was collectively agreed that if you want to get your home sold, this is the price we have to adjust it to.  Now it’s not easy for me to say that after I’ve had the house on the market for a couple of months, but 70 years of experience agreed that this is the price your home will sell for. But before you say anything, I wanted to tell you that second form I brought over is a complete cancellation of the listing form.  Now, if you can see your way clear to signing this (price reduction) tonight then I’ll be able to get your house sold and get you into the new house relatively fast.  If you decide to sign this cancellation and assuming my broker will, this will free you up to list with someone who – well – maybe doesn’t care.  So, the reason I wanted to stop by is rather than keep you tied up the way we are I wanted to stop by and have you ‘OK’ one of these tonight.  Fair enough?” Be sure you have a copy of both forms with you and stick to your guns!  This technique is not for the meek!  You may want to practice the dialogue a few times until you’re comfortable.

Pricing dialogues and negotiation skills take practice, drill and rehearsing.  One of the most powerful things you can do as an agent is to know your market inside and out, know the numbers and practice the closing skills that will help you take more SALABLE listings each month. As Floyd would say, “Worse than no listing is a listing that won’t sell.” Don’t find yourself in that category.

To learn more pricing skills head over to read more about our eBook at 21 Ways to Get Your Listings Priced Right (Despite the Sellers Best Objections!  In it you’ll find bonus objection handling visuals and tips from industry experts.

Need more marketing help? Contact our team at 866.405.3638!

Technique (And Practice) Can Make All the Difference!

By Julie Escobar

As the market continues to heat up, there’s no better time to sharpen your negotiating skills and polish your
pricing techniques.  You know that old Floyd Wickman saying, “Worse than no listing is a listing that won’t sell.”  Make sure yours are priced to move and you’ll not only be a hero to your sellers, you’ll set yourself up as the agent to call in your marketplace.

Here are three of my favorites:

#1:  Helping the Competition:  Overpricing your home in today’s market can actually help sell other listings.

Put yourself in the shoes of the buyer.  They’ve got an agent and they’re looking at listings that are priced at market value, show well and have motivated sellers.

If they look at your home and a comparable home and all things being relatively equal, in other words, both are 4 bedroom, 3 bath, 2600 sq. ft. homes and both show well but yours is $50,000+ above market value, which home is going to look more attractive to them when it comes to a bottom line decision for their family?

In fact, when it comes to choosing their property, if your home is overpriced, you’ve just made the lesser priced home look perfect by comparison.  They can feel good about their decision of getting the same sized home for less!

You can also pull comparables from your MLS to show real world applications of this. 

Another point to make here with the sellers is to share with them the absolute fact that most people start their search for homes online and we’re a web-savvy nation of consumers.

That means that if they overprice their home today and it goes online via the MLS and your multiple w21Wayseb listing portals, their home won’t even have the benefit of SHOWING up when consumers are searching by price in your market area. 

They’ve just priced themselves right off the internet search – eliminating the possibility of that 85+% of consumers who start their search there.  Definitely food for thought!

#2:  The Four Sales:  A great Floyd Wickman strategy – they don’t call him the “Duke of Dialogues” for nothing! Here’s the dialogue:

You know we’ve covered the comparables – the research that I showed you with the prices of the other homes like yours that have sold recently in this area.

And I know you want to list it at the higher price.

I’ve put a lot of thought into it, and you know if we went ahead and put it on the market at your price – and I was the only one that had to be sold on that price – well I guess that would be fine.

But in reality, there are actually four sales that have to be made in order to sell your home at that price.

First…I have to be sold and I’ve gotta tell you – all I can go by is the CMA facts and figures that I showed you.

Secondly…the other agents have to be sold on showing your property at that price – otherwise they’re simply not going to show it to their buyers.  Unfortunately, they get their numbers the same way I do – from what’s recently sold in the area and those same CMA numbers.

Thirdly…and this is a big one – the buyers.  Let’s just pretend we sold the agents on it.  Now we’ve got to convince the buyers to pay a higher price for a property when there are other homes like it that are selling
for less.

Unfortunately in today’s world and with the internet, buyers have access to the same information that we have here.  They know what homes are going for in this area.  So that’s going to be a tough sale, don’t you think?

Now let’s just say everything lines up and somehow we even sell a buyer on paying more for your property than we know its worth in this market.

We still have one more sale.

Fourth…there’s the lender.  Lenders use exactly the same formulas we do to determine Fair Market Value for a property before they’ll write a loan.

Are you familiar with Fall-Throughs? 

Yeah, fall-throughs are what happens when people who were thinking just the way you were thinking and the sale can’t go through because the property won’t appraise for what you’re asking for it.

And that’s not what you want right?21 ways tools

#3:  Empathy vs. Reality Close:  This one comes from our friend, Coach Gord Gerrie:

I understand how you feel Mr. and Mrs. Seller and there is no doubt, many others have felt exactly the same way you do right now.

However, what they found was that once they had sold their house and focused their attention on their new home, they understood that the reality of accepting the offered price really only amounted to a few dollars more per month on their next home.

Again in reality, by accepting this offer today, you will know that your house is sold and that the difference between what you had hoped for and what you will receive will amount to less than $X per day in your new home.

Would you let $X per day stand between you and the home of your dreams?

These are just three powerful closes to help you get the right price for your listings the first time around.  Find 18 more in our eBook 21 Ways to Get Your Listings Priced Right (Despite the Sellers Best Objections! Want to learn more ways to grow your business?  Join us on our Facebook page or Google+ page today – we’d love to hear from you.  

 

Setting the Stage for Successcommission objection handling brochure

By Julie Escobar

After last week’s email regarding our objection handling brochures we were flooded with calls.  So we thought we’d share a little dialogue for you to use WITH the brochures so you can handle objections with EASE the next time you’re up against some tough sellers.

Let’s start with the Commission Brochures.  Things are heating up out there and competition is getting pretty intense.  What we know is that nothing lasts—not the good times or the bad times.  But one thing that ALWAYS seems to rear its nasty little head during the GOOD times is that the discount commission agents start coming out of the woodwork.  And that means it’s time for savvy agents to get down to business and know how to handle objections well before a seller even has the chance to utter the question, “Will you cut your commission?”

To help you head that objection off at the pass, I sat down with ProspectsPLUS.com Company President Jim Morton to get some 5-Star dialogue for handling that oh so common objection!

The truth is that listings are (and always have been) the name of the game.  So, what are you seeing RIGHT NOW?  Agents want LISTINGS.  Why?  Because they’re SELLING. What HAVEN’T you seen in recent years?  You haven’t seen a lot of discount brokerages, or sell-it-on-your-own type companies. But they’re back – and they’re back big. And FSBOs are getting a little cockier as well.  So be PREPARED.    You’re going to get hit with objections.

The best thing to do in this market?  Is to get prepared.  Know that there are really only a few common objections when you get down to it.  And you’ll probably be hit with quite a few in the next year or so.  See if any of these sound familiar?

  • “The other broker said they would list it for less commission.”
  • “I want to try to sell it myself to save the commission.”
  • “I have a friend in the business and they said they’d take less commission.”

When you are hit with one of these – or any objection, remember this.  The way to change another human being’s feelings is VISUALLY.  A few well-chosen words with a correct visual will always take you further than the words alone.  So having five or six commission handling brochures in your briefcase at all times.  That does a couple of things for you.  First, it lets the sellers know that you are prepared, and you’ve handled this before.  Secondly, it will give you a track to run on.  There’s six reasons why another agent might take less – and how that can be COSTING that seller money.  Your job as the professional is to visually show them these six reasons with a few well-chosen words and have the ability to handle that objection without stress.

How do we get started?  First go to the website, download a pdf of the commission handling brochure, fold them up and keep them in your briefcase as part of your presentation tools.  If you’re using an iPad or notebook for your presentation you can display the pdf on that as well. Or we can print for you and ship a stack to your home so you always have them handy.

Next, use the five-step objection handling process:

  1. Agree with them.
  2. Ask them open-ended questions.  (They usually start with:  Who, What, Where, When, Why, and How).
  3. Isolate the objection with a sharp-angle close.  “Well what if you knew ______________, would you _______?”
  4. Show them something.
  5. Use an assumptive close.

Here’s a little dialogue: 

Mr. and Mrs. Seller, you know if there is a way to save money — I don’t blame you.  I’m always looking for ways to save money as well.  In today’s world it just makes sense-right?  And you know if in fact you could save money going with that other broker, I’d recommend that – but I guess let me ask you this:  What’s more important to YOU?  Is it paying a lower commission or is putting the most money in your pocket?

Oh, OK, so it’s putting more money in your pocket?  Is there anything else?  Any other reason you would want to go with someone else other than the commission?  — Ok – so just the commission.

Well let me ask you this – what if you knew that by going with that other agent you wouldn’t be saving a dime?  As a matter of fact, you might be costing yourself five or six thousands of dollars out of pocket, would you still go with them?  I guess, here’s what I mean.  What if you knew that by paying a lower commission that you’d put less money in your pocket when it’s all said and done.  Would paying a lower commission still be important to you? What’s more important? Paying a lower commission or putting more money in your pocket?

What if I could show you beyond a shadow of a doubt, that sure, I may charge a little more, but if I could put more money in your pocket would you go ahead and put it on the market with me? If putting more money in your pocket is really what’s most important, you’d almost insist right?  Well let me show you some things that will save you a lot of time and aggravation – and even a lot of money.  Would that be OK?  There are six reasons that a broker or agent will charge less commission.  Let’s go through them – let’s start with what could be the most important one — reducing their commission…

The truth is — a 1% reduction of commission results in 20% of their income.  Let me ask you 6 pitfallssomething – if your agent is so good at letting you negotiate a 20% reduction of their livelihood – how well will they do at protecting your interest with a buyer who wants to reduce the price of your house?”

The commission handling brochure has six great reasons why the OTHER agent is willing to reduce their commission – and frankly – why they SHOULD.  It’s a powerful tool to have in your toolbox when facing pricing objections in what is sure to be a busy and competitive market ahead.timing is everything

You’ll also want to take a look at the 6 Pitfalls of Overpricing – which is perfect for those pie-in-the-sky sellers who want every dime back for the ‘expensive paint’ and other personal ‘upgrades’ to their home. It covers the six top missteps that happen when overpricing a home.

And the Timing is Everything, and Think it Over Brochures are great as well for sellers who are sitting on the fence. They spotlight what a seller can lose by waiting.  Check them out today! Use the 5 step objection handling process with these objections as well!

Hope the dialogues helped!  Get your copy of the commission handling brochure today by clicking here.  Need help with your marketing needs as we speed into the new season?  Call us today at 866.405.3638!  That’s what we do best!   Google

When the Right Piece at the Right Time Equals a Signaturereal estate brochures

by Julie Escobar

Top trainers will tell you that having the right words in any presentation situation is vital, but the right words coupled with a powerful visual is the equivalent of a one-two punch.  Why?

First – Visuals create AUTHORITY. Whether they are in the form of a brochure, report, newspaper article, graph, or a combination of all of the above in a listing or pre-listing presentation — lend CREDIBILITY to the words that you are using.  They help create a tie-down and focus when handling objections and helping sellers and buyers better understand the decisions before them.

And secondly – they help keep  you ON TRACK.  It’s easy to get flustered when objections are coming at you, but having collateral material that you can reference is a great way to keep focus and keep control of the conversation and the presentation.

Let’s use our commission brochure as an example.  It kicks off with a title that BrochuresWhatYouDontKnowTHUMB4says some agents DO REDUCE their commissions – and they should!  And delivers six reasons agents cut their commissions and explains that what people DON’T know about commissions as sellers can cost them plenty.

This piece is great for heading off the question, “will you cut your commission?” or the objection, “other agents will cut their commission,” before either even arises.  Couple it with some well chosen words, “Well, Mr. and Mrs. Seller, you’re right, some agents DO cut their commissions, and there’s good reason for that. Let me walk you through the top reasons why some agents do and then we can discuss why that’s not really in your best interest.  May I show you?”  Then walk them through the steps.

Click here to get your copy of this powerful commission brochure visual today.  Or take a look at any of our personal, objection handling or pricing brochures to add that one-two punch to your next presentation!

We’ve even got a quick video you can watch on how to quickly and easy order the brochure of your choice!

[youtube http://www.youtube.com/watch?v=o70u3ja0vZA]

Need help?  Call our office at 866.405.3638 today and our marketing team will be happy to help you find just what you are looking for!