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Jon Goldtosold9


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Jon Goldtosold9

  1. 1. GOLD TO SOLD
  2. 2. Appreciating/Depreciating Market Appreciating Market Low interest rates = Prices pushed up = Sellers don’t sell = Low inventory = PRICES UP Depreciating Market Seller greed = Overpriced listings = Reached tipping point = Inventory increases = PRICES DOWN
  3. 3. Real Estate Product vs. Commodity <ul><li>Here’s the paradigm shift, real estate is not a product, it is a commodity. </li></ul><ul><li>It is the buyer who establishes value and there is no relationship to advertising. </li></ul><ul><li>Real estate is like a stock – IBM never stops trading, it’s the buying public who pushes the price of IBM up or down every day of the week. </li></ul><ul><li>Its not a question what the seller wants or has to get, it’s the buyer’s perception of value that determines whether your home sells or it doesn’t. </li></ul>
  4. 4. Real Estate Product vs. Commodity <ul><li>There is one big difference between real estate & other commodities. </li></ul><ul><li>Real estate is an emotional purchase- buyers fall in love with your home, but they don’t fall in love with IBM. </li></ul><ul><li>It’s that emotionality that causes people to want what they can’t have, pushing prices up. </li></ul><ul><li>In summary –with a commodity it’s the price point which creates positive or negative energy – turning the buyers on or off. It is my responsibility to turn buyers ON! </li></ul>
  5. 5. FACT: Buyers Buy When They Perceive Value Inventory sells at its highest price in the first days of exposure
  6. 6. FACT: Buyers Buy When They Perceive Value <ul><li>Let me explain how the Buyer Pool functions and why it is so important to create value & to generate the greatest volume of traffic through your home in the initial marketing stage. </li></ul><ul><li>Its that high level of buyer energy & enthusiasm – that sense of urgency, the “I have to have it” that needs to be created initially so that you net top dollar for your home. </li></ul>
  7. 7. THE BUYER POOL Perception: Fewer buyers in the marketplace = Buyer’s Market
  8. 8. THE BUYER POOL Perception: More buyers in the marketplace = Seller’s Market Conversely, there is also the perception that the buyer pool expands in a so called “good” market.
  9. 9. THE BUYER POOL The Reality: The buyer pool remains relatively constant . It’s the buyer’s perception of value that pushes prices UP or DOWN! The Paradigm Shift FACT: There are more buyers who can afford less expensive homes than those that can afford higher priced homes. Scale of Value
  10. 10. The Law of Economics is supply vs. demand. It is the supply that controls the demand, NOT the demand that controls the supply.
  11. 11. The 3 Golden Rules of Successful Real Estate
  12. 12. <ul><li>Educate you about how the market REALLY functions </li></ul><ul><li>Educate you throughout the entire marketing process </li></ul><ul><li>To help you make decisions that are comfortable for you </li></ul>1 st Golden Rule EDUCATE
  13. 13. <ul><li>Market Study Using Current Market Data </li></ul><ul><li>Analyzing Buyer Criteria - Pool of Buyers </li></ul><ul><li>In-Depth Inventory Knowledge </li></ul><ul><li>Assisting in Choice of Initial Market Position That Will Bring Multiple Offers Even in Depreciating Markets- (Best Bottom Line For Sellers) </li></ul><ul><li>Assisting in Repositioning- Energy Number that Drives Traffic to Your Home So That Buyers Make An Offer While Other Inventory Sits </li></ul>Educate
  14. 14. The Importance of Market Positioning Educate Buyers just entering market What is it worth? Buyers wanting to buy What will it take? Buyers prepared to buy
  15. 15. The First 14 Days Are the Most Critical in the Marketing of Your Property We’ll show you the statistics First 14 Days Educate
  16. 16. What is the Market Doing? We Can Always Tell Whether The Market Is Going Up or Down by Measuring The Amount of Inventory Coming On Or Off The Market Educate Inventory coming on… Inventory going off… Inventory coming on… Inventory going off… Prices go DOWN Prices go UP
  17. 17. Gold to Sold Educate Depreciating Market Appreciating Market Abundance of energy and no inventory Abundance of inventory and no energy Abundance of inventory and no energy. Competitive pricing makes your home look good compared to the other inventory and creates the same environment as an Appreciating Market.
  18. 18. W hat The Public Thinks <ul><li>85% </li></ul>Survey of recent home sellers indicate that 85% felt the selling agent earned the fee.* Survey of recent home sellers indicate that 87% felt the listing Agent did not earn the fee.* 87% Survey By NAR Educate Total Fee Reward Sales Side Listing Side Marketing Fee
  19. 19. Educate As a Listing Company We Focus on Those 87% of Sellers. If Our Negotiating Expertise Puts More Money In Your Pocket Than Our Competitors, Then You Will Tell Your Friends About Your Positive Experience and That’s How We Build Our Reputation. WE CAN’T AFFORD TO LET YOU DOWN!!!
  20. 20. “ THE “TANGIBLES” <ul><li>MLS </li></ul><ul><li>Key Box </li></ul><ul><li>Advertising </li></ul><ul><li>Public Open Houses </li></ul><ul><li>Signs </li></ul><ul><li>Feature Sheets </li></ul><ul><li>Magnets, Pens and Pads </li></ul><ul><li>Broker Open Houses </li></ul><ul><li>‘ Just Listed’ Announcements </li></ul><ul><li>Real Estate Magazine Advertising </li></ul><ul><li>Internet Advertising </li></ul><ul><li>Home Warranties </li></ul><ul><li>Corporate Relocation Affiliation </li></ul><ul><li>Property Preparation Consultants </li></ul><ul><li>(800) Telephone Number on Signs </li></ul><ul><li>Advertising Your Home Every Week Until Sold </li></ul><ul><li>Advertise Your Home on Video </li></ul><ul><li>National Advertising in Real Estate Publications </li></ul>Educate Century 21 has the Best Tangibles, designed to brand our name and drive the buying public to us, but Tangibles on their own do NOT sell a home.
  21. 21. “ THE “TANGIBLES” Educate <ul><li>Sellers believe that we offer the same things, like the airlines that offer frequent flyer miles. </li></ul><ul><li>They are all offering the same tangibles with no point of difference between all airlines. </li></ul><ul><li>These Tangibles are the reason most sellers don’t believe we earn our fee. </li></ul><ul><li>Good market you don’t need them, bad market can’t do enough of them. </li></ul><ul><li>Let’s concentrate on the “INTANGIBLE” concepts that I will now be discussing with an outcome that will net you top dollar in the process. </li></ul>
  22. 22. 2 nd Golden Rule Creating Perception Of Value
  23. 23. Three Phases of Showing: $525,000 $514,900 $539,900 45 Days on the market 70 Days on the market 100 Days on the market Creating Perception Of Value Where Do You Want To Position Your Home? ??? REPEAT SHOWINGS: home being shown continuously with second looks SHOWINGS BUT NO SECOND LOOKS: home being shown but not perceived as a good value NO SHOWS : home is above the market; no perception of value
  24. 24. How To Create “Drama” Fair Market Value Ex. $509,000 More drama, more bids $489,000 $509,000 Less drama, less bids Creating Perception Of Value
  25. 25. Staging: Before What’s wrong with this room? Reprinted from Plan B Redesigns [] with permission. Copyright 2006. All Rights Reserved. Creating Perception Of Value
  26. 26. Staging: After Notice a difference? How much do you think these improvements cost? Do you think the improvements increased the value of the home? Reprinted from Plan B Redesigns with permission. Copyright 2006. All Rights Reserved. Creating Perception Of Value
  27. 27. Tips on Curb Appeal <ul><li>Enhance your listings curb appeal: </li></ul><ul><li>Power wash/Paint the outside of the home </li></ul><ul><li>Add Shutters </li></ul><ul><li>Add/Replace Mulch (Use vibrant colors) </li></ul><ul><li>Add/Replace Plants (Colorful) </li></ul><ul><li>Coat or Repave Driveway </li></ul><ul><li>Cut back on overgrowth of plants and trees </li></ul><ul><li>Add outdoor lighting (Replace Bulbs) </li></ul>Creating Perception Of Value
  28. 28. 3 rd Golden Rule <ul><li>Negotiating the Sale </li></ul>
  29. 29. How to Handle the Negotiation Process <ul><li>This is where I earn my fee in my ability to control the negotiation process in order to net sellers’ top dollar. </li></ul><ul><li>Poorly managed, sellers’ will lose money. </li></ul><ul><li>In summary, if I don’t educate you, we cannot create a perception of value, and if we don’t create a perception of value, we will not get to the negotiation stage!!! </li></ul>
  30. 30. Historical Proof of High Inventory/ Lower Sales Price & Low Inventory/ Higher Sales Price High Inventory Low Inventory $ $ X X 1982 1987/88 1995/96 2005
  31. 31. Thank You!