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Working with sellers part - 2

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  • 1. RE/MAX Mumbai Gujarat MaharashtraWORKING WITHSELLERS Part - 2Sahil Shah
  • 2. RE/MAX Mumbai Gujarat MaharashtraLength of the Presentation Consumer’s time is money Building rapport is crucial Focus on presentation Maintain control by asking question Sell yourself and RE/MAX first Ask price last as if you already have thelisting
  • 3. RE/MAX Mumbai Gujarat MaharashtraBe ready for these questions…• How long have you been in real estate?• What is the average number of days on the market foryour listings?• What is your list to sale price ratio?• May I have a copy of your marketing plan?• What do you know about our area?• Have you sold any homes in our area?• What is your professional fee?• What is the standard duration of a listing contract?• Does my home need any repairs?• At what price range would you market my home?• Do you have any references?• If you don’t have a track record, use your office statistics
  • 4. RE/MAX Mumbai Gujarat MaharashtraPersonal Brochure• Community expertise• Many satisfied customers (usetestimonials)• Personalized service• Company that has listings/out of townbuyers in their price range• Successful marketing plan• Outstanding feature sheets• Open houses
  • 5. RE/MAX Mumbai Gujarat MaharashtraListing to Offer Acceptance• Sign installed• Title search• Enter listing into database / website• Notify your buyers• Thank-you for the listing card• Feature sheet• Progress report – form• Advertising – when, where• Follow-up on all showings• Price reduction
  • 6. RE/MAX Mumbai Gujarat Maharashtra Never show need Enthusiasm is critical asset Follow-up is important Most recent information is what the sellerremembers Make it easy for the seller to sign
  • 7. RE/MAX Mumbai Gujarat MaharashtraPricing !!! 80% of the marketing takes place themoment the asking price is set Get a Comparative market analysis(CMA) going Current homes listed, their expectedprice, previous homes sold, homes thatdid not sell because of being overpriced New inventory coming up in same market
  • 8. RE/MAX Mumbai Gujarat MaharashtraMarket Conditions Balanced market : 4-6 months inventory Seller’s market : 2 month supply Buyer’s market : > 6 months inventory
  • 9. RE/MAX Mumbai Gujarat MaharashtraIs he trading up?• A buyer’s market is ideal• A seller’s home was Rs.20,00,000 and based on thecurrent buyer’s market must take 5% less orRs.19,00,000, a loss of Rs.1,00,000. Their next homewould have had a purchase price of Rs.40,00,000,however, due to the buyer’s market they can buy itfor 5% less or Rs.38,00,000 – a saving of Rs.2,00,000.• The seller saves Rs.1,00,000 by selling and moving upin a buyer’s market.• Now if prices bounce back and go up 5%, your sellerwill gain Rs.38,00,000 x 5% = Rs.1,90,000 whereas ifthey stayed where they were they would only gainRs.19,00,000 x 5% = Rs.95,000. A net gain of Rs.95,000(double)!
  • 10. RE/MAX Mumbai Gujarat MaharashtraCondition of the Property Price matches the condition Location, size, amenities, features Staging results in better value as housebecomes best buy in the price range Least expensive in a higher price range Initial Impression is important
  • 11. RE/MAX Mumbai Gujarat MaharashtraOverpriced Listing• Some Sales Associates won’t take anoverpriced listing for the following reasons:– It reflects badly on their image– They cost more to market– They monopolize your time• Many Sales Associates will take an overpricedlisting:– They provide a marketing opportunity– When the seller is motivated and must sell Pricemay be reduced
  • 12. RE/MAX Mumbai Gujarat MaharashtraDangers in Overpriced Listings It can result in a home not selling at all. It can result in very few, if any, showings. It can result in a home selling for less money than itshould. It can result in a home sitting on the market for longperiods of time, resulting in a very frustrated seller. It can result in numerous price reductions which willeventually make buyers wonder what is wrong withthe property. It can lead to a difficult, emotional and unsuccessfulnegotiation process. It can hurt sellers, because Sales Associates are notmotivated to list or show their home.
  • 13. RE/MAX Mumbai Gujarat Maharashtra• It can hurt the overall image of a real estate firm and listingSales Associate, because of having a reputation foroverpricing.• It can result in a real estate firm and listing Sales Associatereceiving less call-in and walk-in leads.• It can cause a home to become stale on the market.• It helps realistically priced homes to sell faster by acting as anegative comparison.• It can lead to serious listing Sales Associate frustration.• It can lead to the seller wanting to take their house off themarket.• It can result in the seller wanting to cancel their listingagreement, because the first thing that sellers blame whentheir home does not sell is the Sales Associate - not the price!• This will then cause a loss of referral business.
  • 14. RE/MAX Mumbai Gujarat Maharashtra If you do get an accepted offer, it could lead to numerousappraisal problems. It can lead to extreme emotionalism and anxiety - selling yourhome ranks in one of the top ten most stressful things people do- and a home not selling makes it even worse! It can result in real estate firms and Sales Associates having toagree to reduce their listing and sales commissions which isunfair as an overpriced listing gets advertised for longer. It can result in real estate Sales Associates having very shortcareers.
  • 15. RE/MAX Mumbai Gujarat MaharashtraNegotiating with SellersTypical objections Price is too high Commission is too high. Need to speak to my lawyer Bad market
  • 16. RE/MAX Mumbai Gujarat MaharashtraHow to handle:• Echo (Question back objection) - Find out what theobjection really means.• Paraphrase - be more specific.• Advise / Counsel - “seek to understand” what theobjection means and how it will affect them.• Sell features and benefits. Deal with the objectionsrather than avoid them and then move on to thebenefits and the wonderful features.• Negotiate - look for the solution and as a final stepgive concession for concession.• Know when to walk away and find newprospects...there are plenty more.
  • 17. RE/MAX Mumbai Gujarat MaharashtraSeller Objections• We want to look before we list.• I have a friend or relative in the business.• Can’t we just try it at this price? They can make an offer.• Another Sales Associate said they would list for a higher price.• We need more money.• Negotiating a low offer or price reduction with seller.• We want to only give you a 30/60 day listing.• I’ve never heard of you before.• Let’s list high; we can always come down later.• We want to think it over.• You’re too new, or inexperienced versus other experienced SalesAssociates.• I want you to cut your commission.
  • 18. RE/MAX Mumbai Gujarat MaharashtraCommissionService Feedback• Overall impression• Did I look after special needs?• Would you use me again?• Product Knowledge• Would you refer me?• Response time• Professionalism• Listing presentationDid you pay my FEES ???
  • 19. RE/MAX Mumbai Gujarat MaharashtraWhere does commission go? Broker Office Selling Broker Associate Additional Agent in transaction Advertising/Sign Petrol Telephone Bills Printing Office Expenses
  • 20. RE/MAX Mumbai Gujarat MaharashtraCommission Objectives Seller asks you to do it for less. The other Sales Associate will do it for less. We’ll save the commission by selling itourselves. Don’t open the commission cutting door. Sales Associate’s signature first.
  • 21. RE/MAX Mumbai Gujarat MaharashtraFollow Up System Thank you letter Information or graphs comparing yourself/ office to other Sales Associates in themarket place Info on preparing their home for sale Info on the team
  • 22. RE/MAX Mumbai Gujarat Maharashtra• Set up a weekly or bi-weekly market reportfor your active listings.• Send each client a report with the following:– Number of homes currently listed– Number of pending sales in the last 30 days– Percentage of homes selling per month– Average sales price over the last 30 days– Number of days on market for homes sold overthe past 30 days– A list of your marketing activities over the pasttwo weeks to get their home sold
  • 23. RE/MAX Mumbai Gujarat MaharashtraPrice Reduction• Call after every bi-weekly status report and ask fora price reduction.• Include an addendum in the listing contractwhere the seller agrees to meet with you in youroffice every month to review the price.New listing copies to• Client mailing list• Lead list• Top Sales Associates• Lower priced listings in the area
  • 24. RE/MAX Mumbai Gujarat MaharashtraAfter Closing• Call your clients the day of closing to make sure that there isn’tanything that they need before going to the closing.• Call them the morning after closing to make sure that everythingappears in order. Most real estate Sales Associates dread makingthis call. Dont be one of them.• Call them, either on moving day or shortly thereafter, to find out ifthey have found anything that might require your assistance.• Call or e-mail them at week two to make sure that everything is stillOK and if there is anything you can do for them.• Call or e-mail them at week four to find out how they like their newneighborhood.• At week six and week eight do a quick e-mail or call to make surethat everything is in order, and then transfer the closed client toyour "past client" care program.• Call them and sincerely thank them for the business. Handwrittennotes
  • 25. RE/MAX Mumbai Gujarat MaharashtraCustomer Satisfaction• Results – their home sells faster than themarket standard at the time.• The process was one with little inconvenienceand problems were dealt with quickly.• As their Sales Associate, you wereknowledgeable, professional and thorough.• Regular communication- .accessibility.• They feel respected• You appreciate the business and followed-upafter the closing and thanked them.
  • 26. RE/MAX Mumbai Gujarat MaharashtraHandling Complaints• Respond quickly. Don’t let the issue fester and blow itselfout of proportion.• Handle the situation in person. Don’t delegate.• Stay calm, even if you feel the complaint is not justified.• Show genuine concern. Ask what the client feels shouldbe done.• Accept responsibility to clarify or rectify the situation evenif responsibility for creating the problem is not directlyyours (e.g., It was created by another party to thetransaction).• Negotiate and settle the problem promptly.• Follow up after the fact.
  • 27. RE/MAX Mumbai Gujarat MaharashtraAvoid the 8 Biggest SellingMistakes• Mistake #1. Wrong Price• Mistake #2. As-Is Condition• Mistake #3. No Curb Appeal• Mistake #4. Not Making Your Home “Fit toSell”• Mistake #5. Lavishly Over Improving• Mistake # 6. Not Using a Professional• Mistake #7. Not Disclosing Defects• Mistake #8. Playing tough to lose dealaltogether
  • 28. RE/MAX Mumbai Gujarat MaharashtraNegotiation Rules You negotiate all the time. Anything you want is presently owned bysomeone else. There are predictable responses tostrategic maneuvers in negotiating. There are three critical factors to everynegotiation: awareness, information andtiming.
  • 29. RE/MAX Mumbai Gujarat MaharashtraThree stages in negotiation• Establish criteria• Get information• Reach for compromiseAsk “What if:”• Possession was earlier?• We finance through seller’s bank to savepenalties?• We exclude certain parts?
  • 30. RE/MAX Mumbai Gujarat MaharashtraNegotiation tactics• Tactic: You are a great guy, but I need you to cut the commission.• Tactic: There is a promise of future business - reduce the commission onthis one as I have got more business coming your way.• Tactic: They tell you that you are competing with other Sales Associates.• Tactic: They give you a deadline but you need more time.• Tactic: Emotion. The first meeting is very warm and responsive. Whenyou come with the offer they become unpleasant. This is designed tomake you emotionally unbalanced and get you emotionally involved.• Tactic: They start to sign and then stop to see if they can get one moreconcession.• Tactic: They use the begging approach.• Tactic: They nibble away at you, asking for one concession afteranother.
  • 31. RE/MAX Mumbai Gujarat MaharashtraThank You !!!