Thursday, 14 November 2013

5 Ways to Get the Property Sold

Don’t Buy The Listing!

Sale-able listings are almost always created at the listing appointment. Weak agents tend to have "I’ll take the listing" at any cost type of mentality. But think about the stupidity of that attitude. If you take a listing that is overpriced or the condition is horrible, or if the seller won’t allow you to market the property properly what will the end result be? 
A frustrated seller, an empty bank account, and a huge amount of wasted time!
Instead decide now that you will choose to only take listings that you feel have a reasonable chance of selling. This may include setting your own internal standards. Example: Perhaps you will only accept listings that are within 5-10% of your recommended price range.

To set the stage for success you have to come prepared to listing appointments. Meaning you have to have done your homework.

One of the key ingredients to taking a saleable listing is setting the right asking price.

Start from your gut instincts and work backward. You and I both know that as soon as we walk into almost any home, we instantly have a gut reaction as to what the home will sell for, I would call this your "gut" price. It may be wrong, but my guess is usually it’s pretty accurate. Most agents have this reaction and then immediately begin fighting it, in other words, they look for ways to build up the price. Why? So they can buy the sellers love! Don’t do it! Trust your gut!

Set the Stage for Price Reductions

A terrific technique to use when taking a listing is to explain to the seller that as a normal part of your sales process, your team mails out a price reduction letter every thirty days to homes that have not yet sold. This will provide the seller with an ongoing push to reduce their price, and provide you with a talking point during your regular phone follow up calls.

An example of how this works follows:

Sally: Listen, I want to really thank you for this listing I’m very excited to begin marketing the property. I want to take just a couple of minutes and talk about the follow up process. Would that be OK.
Seller: Sure.
Sally: One of the things that my team does is to mail out an auto-price reduction letter every thirty days. I don’t want you to be offended by this, we do it with every seller. You can do one of a few things with it - Of course you can throw it away, or you can save it just in case you might want to use it in the future, or you can just fill in the price adjustment and mail it back... If you do adjust your price let me tell you what will happen then....

By using this simple technique you will keep your seller focused on an area that they control, price! This can open up the discussion to a price adjustment, and create an opportunity to sell the listing.

Talk About Inspections

One key to building a sale-able listing is to talk about showings. Sellers often associate showings directly with your performance or lack there of. They tend to think - If my house is not being shown it must mean that my agent isn’t advertising enough, so bingo they call you and complain. Most agents will then run off to spend even more money on a listing that will never sell.

Instead why not explain the truth to the seller? What is the truth? 

Here it is:

If the home is not being shown it’s almost always because the market is rejecting the price. If on the other hand the home is being shown but you are not receiving any offers it’s almost always because there is something wrong with the condition of the house. If you explain these facts at the listing presentation you will set yourself up to talk intelligently about getting the home sold, instead of just placating the seller with more advertising that will never work.


Sally: A couple of things we need to be really conscious of, first, if we don’t get any inspections or very few inspections - what this means is that the market is rejecting the price, and no amount of marketing will fix it. At that point I may need to ask you to adjust the price. The reverse would be if we get a lot of inspections but no offers, that would indicate that the buyers are rejecting something specifically about the house. My job would be to find out what it is and see if there is something we can do to fix it.


Be Brutally Honest During the Listing Presentation

Most agents think that telling sellers what they want to hear is a smart way to get listings. In reality it is almost always a straight line to the bottom of the profitability barrel. When you lie to sellers, you are lying to yourself. You end up congratulating yourself for taking a listing, which has absolutely no chance of selling. What a huge waste of time and energy! 

Instead we should tell sellers what we honestly think. This fresh approach may seem radical, but I guarantee you sellers will love you for it.

The classic example of this is in regards to the condition of a home. Most sellers will ask an agent what they think should be done to prepare the home for marketing, unfortunately most agents will respond with some kind of lame answer like "Oh, nothing, it looks terrific!". Really, what about the holes in the rug? The water spots on the ceiling? Or the dogs "accident" on the front steps? Terrific?

Instead try this technique:

Sally: Listen, we can go two ways here. I can tell you what you want to hear, or I can tell you the truth - Which would you prefer?
Client: The Truth
Sally: Are you sure?

If you were the seller what would your answer be? Probably the same as mine! "Tell me the truth."

Give Them Something to Do

Think about your seller for a minute. They’ve been thinking about selling for the last six months. Finally they work up the nerve to invite an agent over to the house. They listen carefully to the presentation, all the while getting more and more excited about the prospect of moving. At the end of the presentation they agree to list the house. Now they are on cloud nine, and they just can’t wait for that first inspection.

The downside, of course, is that all they can do is wait, and wait, and wait, and watch. They watch your every move, your flyers, your advertising, your website, and your follow up letters. Inevitably they find mistakes, which in their mind is exactly why the home is not selling. They become frustrated, irritated, and hard to deal with - eventually they fire the agent and hire another.

Is this typical? I would say this exact scenario happens tens of thousands of times a year through out the country. Instead of just letting your sellers sit and do nothing why not give them a list of things to do. For instance - How about a Pre-Inspection Checklist, a Pre-Marketing Checklist, or an After Inspection Checklist. This simple list of things to do can provide a seller with an outlet for all of that nervous energy. 

To get more tips and educational information, or real estate training and courses on Real Estate investment follow and contact REET.