Managing Sellers Expectations Sales Meeting October 20, 2010
Video <ul><li>Wealthy Homeowners Wont Budge on Price </li></ul><ul><li>Wall Street Journal </li></ul><ul><li>The News Hub ...
Ask, and Listen <ul><li>Ask your client: </li></ul><ul><ul><li>What are your expectations? </li></ul></ul><ul><ul><ul><li>...
Housing is Local <ul><li>“ National Housing Market” isnt what matters, the Omaha market is </li></ul><ul><li>The larger th...
Comparables <ul><li>DOM </li></ul><ul><li>CMA- What other homes sold for </li></ul><ul><ul><li>Try to use information from...
Neighborhood Values <ul><li>CMA report on area, subdivision, zip code </li></ul><ul><li>Schools, entertainment, walk score...
Have the client attend open houses <ul><li>Let them see for themselves what the comparables are </li></ul><ul><li>Ask the ...
Supply & Demand <ul><li>Price to offset inventory if the supply is much larger than the demand </li></ul><ul><li>Share wit...
Buyers Market <ul><li>The home is worth what a buyer is willing to pay for it </li></ul><ul><li>Is the area a growing mark...
Pricing <ul><li>Goal should be a fair price -- something reasonable given the price of other homes in the area </li></ul><...
Pricing Strategies <ul><li>In a market where prices are falling, you'll make more money if you price to sell </li></ul><ul...
Why wont they buy? <ul><li>Uncertainty is holding buyers back </li></ul><ul><li>Unemployment </li></ul><ul><li>Keeping opt...
Suggest Incentives <ul><li>Pay/Put a credit towards buyers closing costs </li></ul><ul><li>Offer a transferable home warra...
What Works? <ul><li>Most audiences relate to personal stories: </li></ul><ul><ul><li>Homes you have helped sell fast </li>...
7 Principles of Influence How to Win Peoples Cooperation <ul><li>Make people feel understood. </li></ul><ul><li>Find commo...
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Managing sellers expectations

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Managing sellers expectations

  1. 1. Managing Sellers Expectations Sales Meeting October 20, 2010
  2. 2. Video <ul><li>Wealthy Homeowners Wont Budge on Price </li></ul><ul><li>Wall Street Journal </li></ul><ul><li>The News Hub </li></ul>
  3. 3. Ask, and Listen <ul><li>Ask your client: </li></ul><ul><ul><li>What are your expectations? </li></ul></ul><ul><ul><ul><li>Price </li></ul></ul></ul><ul><ul><ul><li>Time table </li></ul></ul></ul><ul><ul><ul><li>Discuss how many DOM before price drops </li></ul></ul></ul><ul><ul><li>How did you come to those conclusions? </li></ul></ul><ul><ul><li>Are you pricing based on emotion? </li></ul></ul><ul><ul><li>Would you be willing to sell for less than what you paid? This is a reality of the market today. </li></ul></ul><ul><ul><ul><li>Researchers find that the pain of a loss is two to three times greater than the joy of an equivalent gain </li></ul></ul></ul>
  4. 4. Housing is Local <ul><li>“ National Housing Market” isnt what matters, the Omaha market is </li></ul><ul><li>The larger the inventory, the more choices buyers have and the more price-competitive you need to be </li></ul>
  5. 5. Comparables <ul><li>DOM </li></ul><ul><li>CMA- What other homes sold for </li></ul><ul><ul><li>Try to use information from past 3 months </li></ul></ul><ul><ul><li>Use older information (from peak) to compare and show sellers that home values have gone down </li></ul></ul><ul><li>Show Avg List Price/Avg Sold Price </li></ul>
  6. 6. Neighborhood Values <ul><li>CMA report on area, subdivision, zip code </li></ul><ul><li>Schools, entertainment, walk score, hospitals, recreation </li></ul><ul><li>Is new construction nearby? Is it priced to compete with your aging home? </li></ul>
  7. 7. Have the client attend open houses <ul><li>Let them see for themselves what the comparables are </li></ul><ul><li>Ask the agent </li></ul><ul><ul><li>how many offers they have received </li></ul></ul><ul><ul><li>If they have dropped the price at all </li></ul></ul>
  8. 8. Supply & Demand <ul><li>Price to offset inventory if the supply is much larger than the demand </li></ul><ul><li>Share with clients how many homes in the area in their price range are present so they know how much competition they are up against </li></ul>
  9. 9. Buyers Market <ul><li>The home is worth what a buyer is willing to pay for it </li></ul><ul><li>Is the area a growing market with people coming in? </li></ul><ul><li>Or is it an area that doesn't attract a lot of new residents, where many shoppers don't have to buy but are looking to pick up a bargain? </li></ul>
  10. 10. Pricing <ul><li>Goal should be a fair price -- something reasonable given the price of other homes in the area </li></ul><ul><li>The amount of traffic that a listing gets in its first week is five to seven times what it gets in its ensuing weeks </li></ul>
  11. 11. Pricing Strategies <ul><li>In a market where prices are falling, you'll make more money if you price to sell </li></ul><ul><li>If prices in the area are dropping 1% each month, and they want to sell within the next three months, take 3% off the price right off the bat </li></ul><ul><ul><li>If they want to put home on the market for $400,000, set the price at roughly $388,000 </li></ul></ul>
  12. 12. Why wont they buy? <ul><li>Uncertainty is holding buyers back </li></ul><ul><li>Unemployment </li></ul><ul><li>Keeping options open in case a job in another state comes up </li></ul><ul><li>Rates are low, but it is tough to get financed </li></ul>
  13. 13. Suggest Incentives <ul><li>Pay/Put a credit towards buyers closing costs </li></ul><ul><li>Offer a transferable home warranty </li></ul><ul><li>Motivate buyers with option to close within 30 to 60 days </li></ul><ul><li>Some sellers are even throwing in a new car, vacation or credit equal to 6 months of property taxes </li></ul><ul><li>Seller financing </li></ul>
  14. 14. What Works? <ul><li>Most audiences relate to personal stories: </li></ul><ul><ul><li>Homes you have helped sell fast </li></ul></ul><ul><ul><li>Stories from others in the office </li></ul></ul><ul><ul><li>Homes that were overpriced and how long they stayed on the market </li></ul></ul><ul><li>Share your marketing plan </li></ul><ul><li>Educate your client on trends </li></ul>
  15. 15. 7 Principles of Influence How to Win Peoples Cooperation <ul><li>Make people feel understood. </li></ul><ul><li>Find common ground. </li></ul><ul><li>Listen. </li></ul><ul><li>Don’t argue. </li></ul><ul><li>Care about the people you want to influence. </li></ul><ul><li>Help people believe change is possible. </li></ul><ul><li>Time your request well. </li></ul>

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