Thursday, May 9, 2024

closing techniques

    You’ve conducted a buyers’ consultation and you have a pretty good handle on what your potential buyers want in a home. Now, it’s time to find them the home that gets a BIG YES. Here are some tips to help you go from showing to SOLD in lightning speed.

    The checklist

    Just as no two listing clients are identical, not all buyers are alike. Some of them will take your consultation to heart, while others will remain unfocused. Although the following technique works for both, it’s the latter who will get the most out of it.

    Create some checklists and worksheets for your clients to use as they tour each home. HUD offers a home comparison checklist that you can download. Brand it and hand it out to your buyers.

    The Multi-Photo postcard is available in the Multi-Photo Series under the postcard section

    Do the same with a wish list worksheet – which is just as useful for you as it is for your clients. It helps you narrow down the list of homes to show and it helps keeps your clients focused on what is truly important to them.

    Go overboard on sharing information

    If there’s a home on the viewing list that you know fits most or all of your clients’ requirements, help make the sale by loading them up with valuable information.

    Is it their first time in a neighborhood? Be sure to grab some information about it and nearby amenities. If you know where they work, get an estimated commute time by putting the home’s address into Google maps and asking for directions to the work address. The time it takes to drive from one location to the other is included in Google’s directions.

    If the buyers have children, locate nearby schools on a map of the area. Even if they don’t have kids, learn about the quality of those schools.

    If you get lucky, and the home is located close to a quality school, remind childless buyers of how homes near good schools are good investments because they tend to hold their value better than homes near poor-performing schools.

    The best way to get this information is by going online, to schooldigger.com, and entering the name of the school or district in the search box.

    Finally, compiling a CMA for any home you think the buyers will be interested in is a must. They’ll want to know if it’s priced right and had those stats at your fingertips is a valuable customer service tactic.

    luxury marketing brochures
    Luxury Marketing Brochures are available under the Brochure section.
    Don’t encourage enormously high expectations

    I love this tip from John D. Mayfield, broker/owner of Mayfield Real Estate in Farmington, MO. He calls it “underselling,” and cautions agents not to “hype” up a home before the showing.

    Why?

    “Buyers may feel the home doesn’t meet their hyped-up expectations,” he suggests and goes on to caution that “The opposite is true, too—many practitioners have stories of showing homes they thought were downright ugly, only to learn” that it was just what the buyers were looking for.

    Sure, you should mention the home’s features that match their wish list, but, as Mayfield says, “Let the home sell itself.”

    Set the stage

    If you won’t be loading the buyers in your car, try to get to the home a few minutes before they do. This way you can run through the home and open drapes, turn on all the lights and ensure pets are safely tucked away.

    Know when to back off

    Veteran buyers’ agents know the signs of both interest and disinterest in a home. The buyer who zips through the home, barely looking at it, most likely decided at the curb that he didn’t like it.

    Then, there’s the buyer who focuses on one or two rooms, repeatedly returning to them – a definite sign of interest.

    When working with the latter, you need to know when to physically back off. Especially if it’s a couple, give them some privacy to discuss what is most evidently on their minds. “Is there enough room here for the sofa?” “How do you think yellow would work in here?”

    The nit-picker, on the other hand, needs your presence. Although many agents think the buyers who notice every little thing wrong in a home show disinterest, an experienced pro at the helm can guide them into understanding what easy fixes many of these “problems” can be.

    Give them a vision

    Most buyer agents know that a couple that starts talking about furniture placement is interested in the home. They’re envisioning what the rooms will look like with their furniture and accessories.

    Since you were smart enough to get them to provide a thorough wish list, guide their vision by pointing out the features they will find most desirable. Get them to realize that just because a room is used as a bedroom, it doesn’t have to be.

    Do they long for a home office? Point out which bedroom would make the ideal office and why.

    Order or download Property Flyers, available in our Flyer section, then provide them at your next Open House.

    Need help targeting the perfect niche of buyers or sellers? Use our mailing list tool to create the ideal list (it’s easy) or call our support team for assistance at 866.405.3638!

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    The Right Dialogue is the Key!

    As we head into the holiday’s, now is the perfect time to sharpen your negotiating skills and polish your pricing techniques, the following are 3 powerful closing techniques to try. 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.

    3 Powerful Closing Techniques to Try:

    1. Don’t Help the Competition: 

    Overpricing your home in today’s market can actually help sell other listings. Explain to your seller to put themselves 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.

    If the seller overprices their home today and it goes online via the MLS and your multiple web listing portals, their home won’t even have the benefit of SHOWING up when consumers search by price.

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

    2. The Four Sales: 

    A great Floyd Wickman strategy is to use the following 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 are thinking just the way you were thinking about pricing higher 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?

    3. Empathy vs. Reality Close: 

    This dialogue 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?

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