Price Improvement Get the right price to sell

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Price ImprovementGet the right price to sell
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You have a choice to make.
OR
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Todays Agenda

• Sellers View of the Market
• Your View
• Four Steps to Success in Securing a Price
  Improvement.
• Addressing Sellers Concerns
• Follow-up and Service the Listing
• Action Steps

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What are sellers thinking about the market?
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• Understand the market from the
• Sellers point of view.

That article wasnt talking about MY town
Why hasnt my house sold?
I know whats sold in my neighborhood.
My house is better!
What market shift?
This is just a seasonal thing.
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Lets be honest . . . If we know the house is not
priced to move in the market, then why dont we
ask for a price improvement?

• Please write down on the card the 1 reason YOU
  dont ask for the price improvement.
• This is completely anonymous.
• Ill collect all the cards in a minute. Shuffle
  them up and re-distribute them for a quick
  exercise.

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There are only two reasons why people dont
perform. They either . . .
Why Dont We Ask for the Price Improvement?
Dont want to do it
Cant do it
OR
WILL
SKILL
(Often its a combination of both and often Skill
drives Will)
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Taking Action means you have to be Strong in both
these areas
SKILL
WILL
If youve got the SKILL and the WILL then . .
.youre ready, willing AND able.
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Sales Associate Handout

• Please use this handout to follow along and take
  notes.
• Well be sharing a lot of good ideas, tips,
  strategies and dialogue to use.
• Please dont flip ahead!
• Turn to page 3.

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Taking Action means you have to be Strong in both
these areas.
SKILL
WILL

• Want to ask for the price improvement
• Confident about doing it
• See no risk in doing it
• Motivated to do this because the house will
  finally get sold.

• Trained on how to ask for the price improvement
• Understand the why and how
• Have experience asking for the price improvement.

Can you check each one of these boxes? If all
this applies to you, youre ready, willing AND
able.
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Taking Action means you have to be Strong in both
these areas
SKILL
WILL

• Lets re-distribute the cards.
• Ill call on a few people to read their card.
• Well discuss if it falls under Skill or Will.

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Why Dont We Ask for the Price Improvement?

• If you invest in stocks and the stock goes down,
  What does the stock broker say??
• Do you get a call from your stock broker
  apologizing for this?
• Does the stock broker say, Okay . . . Ill cut
  my commission to make up for your loss?

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Got a Monkeyon yourback?
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Why Dont We Ask for the Price Improvement?

• Lots of reasons why we dont do this.
• Some on the Skill side, some on the Will side.
• Did you know that Skill drives Will?
• Can you give me an example of a time when you
  learned something for the first time and you
  werent very good it?

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Step 1 Do Your Homework! (Skill Drives
Will)Step 2 Make the AppointmentStep 3
Conduct the MeetingStep 4 Secure the Price
Improvement
Four Steps to Success
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Step 1 Do Your Homework!
What do we mean by Do Your Homework?
How do YOU prepare?
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Step 1 Do Your Homework!

• Sellers Control Sheet
• Updated Price Trend Analysis
• MLS sheets of active listings of like homes
  marked in RED of days on market
• Summary of price changes and expireds in past 30
  days.
• Market absorption rate
• Supporting articles, news, on line reports, etc.
• Sales Managers written comments on pricing if
  not at meeting
• Price Change form

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Sellers Control Sheet
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Who has used the Sellers Control Sheet?How have
you used it?
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Its not about you, its about the market

• Price Trend Analysis

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Who has used the Price Trend Analysis to get a
Price Improvement?How did it go?
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Step 1 Do Your Homework
Complete a Price Trend Analysis

1. Research the MLS for similar properties from 12
   mo, 6 mo, under contract and active
2. Include the Days on Market for each category
3. Enter the data into the Enhanced PTA calculator
4. Print the PTA form

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Step 2 Make the appointment

• Call the Seller
• Structure your dialogue
• Secure the appointment

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Step 2 Make the appointment

• Structure Your Dialogue

• Greet and Identify
• State your purpose
• Set a time

Hi, Richard. This is Phyllis Bixon with
Weichert, Realtors. There are some things
happening in our local market that we need to
discuss. Its important we meet as soon as
possible. Would Tuesday evening work for you
or any time on Thursday?
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Think about the Seller

• Before we get to conducting the meeting . . . Let
  me ask you ONE question.
• Why do Sellers Sell??

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Think about the Seller

• Bigger House
• Retirement
• Relocate
• Divorce
• These are all life style changes
• Think about why YOUR Seller needs to sell.
  Bring this into your discussion. Remind them of
  why theyre selling in the first place.

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Think about the Seller

• Seller is moving to Florida. When do you go in
  for the price improvement?

What do you bring with you?
What have YOU done to reconnect the Seller to
their goal?
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Step 3 Conduct the Meeting

• Whats your goal here?
• Keep the goal in mind. This is not just an
  update.
• uccess Price Improvement!

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Step 3 Conduct the Meeting

• Establish RapportReconnect with your Seller.
  Reconnect with their reason for moving. Ask
  about the kids, the dog, etc. Thank them for
  agreeing to meet.
• Share Your AgendaAnn and Richard . . . Today, I
  wanted to discuss with you three things
• Whats Happening in this Market
• Progress in Marketing Your Home
• A Plan for Moving Forward
• How does that sound?
• Follow Your AgendaShow how you do what you say
  youll do!
• Ask for the Price Improvement

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Step 3 Conduct the Meeting
Whats Happening in this Market

• Now

• 12 Months ago

• Listings like Yours

• Listings like Yours

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Step 3 Conduct the Meeting
Whats Happening in this Market

• Take Control Start the Meeting
• Id like to start out the meeting by updating
  you
• on certain significant developments in the
  market.

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Step 3 Conduct the Meeting
Whats Happening in this Market

• Print out all active listings in price point
  individually
• Mark days on market in red. Keep updating the
  active listings as days go by.
• Id like to show you whats going on in our
  town. This is unbelievable. Just look at the
  days on market on some of these properties!
• Place them one by one across the dining room
  table.

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Step 3 Conduct the Meeting
Whats Happening in this Market

• Since we last spoke, Ive updated the Price
  Trend Analysis. Look at these side by side. The
  direction is clear ...

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Step 3 Conduct the Meeting
Whats Happening in this Market

• If it supports your view of the market . . .
• Print out listings
• Which have expired past 30 days and/or
• Will expire next 30-45 days
• Print out summary of price changes past 30 days

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Step 3 Conduct the Meeting
Progress in Marketing Your Home
Sellers Control Sheet

• Lets talk about how Ive been marketing your
  home.
• Use Week 4 of the Seller Control Sheet as your
  agenda.

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Step 3 Conduct the Meeting
Progress in Marketing Your Home

• Since we last spoke, heres what Ive done and
  the feedback weve received . . .
• Calling
• Open House Invitations
• Door Knocking
• Mailings
• Marketing (on line and newspaper)
• Buyers Seminar, prospect feedback, Etc.

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Step 3 Conduct the Meeting
A Plan for Moving Forward

• Now that weve just reviewed whats happening in
  this market and progress on marketing your home,
  we need to discuss a plan for moving forward . .
  .
• What are your thoughts . . .

• About the market?
• Where your property is positioned in this market?

Why are we asking these questions?
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Step 3 Conduct the Meeting
A Plan for Moving Forward
What are your thoughts . . .? Why are we asking
these questions?

• Involve them in the conversation. Invite them to
  share their thoughts first.
• Its better to know whats in their minds before
  presenting your thoughts.
• It will influence how you saywhat you need to
  say!

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Step 3 Conduct the Meeting
A Plan for Moving Forward
We need to look at how we are pricing this
house. We want to price it to sell. Its my
recommendation we move to a completely different
price range to open this up to more buyers. What
are your thoughts on this?
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Step 3 Conduct the Meeting
A Plan for Moving Forward
This is the critical point of the meeting.

• Remember, you did your homework.
• You know the market.
• Dont get defensive
• Youre trying to help them move on with their
  lives.

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Feelings are important

• Discount
• Ignore
• Minimize

• Acknowledge
• Reflect
• Listen

• Turn to page 16 of your handout.
• Think of a situation in which you Acknowledged,
  Reflected and Listened.
• Break into pairs and discuss the situation and
  what you did to apply these skills.

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Role Play Conduct the Meeting

• Lets do a role play on the four steps of
  conducting the meeting.
• Who here has brought their Seller File? You will
  play the Sales Associates. You will need this
  file to present your information on Whats
  Happening in the Market. The rest will split up
  into Sellers Observers.
• Well have one person play the Sales Associate,
  one play the Seller and one play the Observer.
  Lets break into our trios now.
• Your roles are described on page 17.

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Role Play Conduct the Meeting

• Sales Associates, you complete the steps below

• Establish RapportReconnect with your Seller.
  Ask about the kids, the dog, etc. Thank them for
  agreeing to meet.
• Share Your AgendaAnn and Richard . . . Today, I
  wanted to discuss with you three things
• Whats Happening in this Market
• Progress in Marketing Your Home
• A Plan for Moving Forward
• How does that sound?
• Follow Your AgendaShow how you do what you say
  youll do!
• Ask for the Price Improvement
• Just STOP once youve asked for the Price
  Improvement. Well handle concerns next.

Practice 15 Minutes Feedback 5
Minutes Then Switch!
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Role Play Conduct the Meeting

1. Observers will watch and take notes.
2. The Observers Checklist is on page 18.
   Observers Your job may be the most difficult.
   To be effective observers you have to take notes,
   check off when you see the Associate complete a
   step and write notes on the bottom for what they
   did well and what they can consider for next
   time.
3. Sellers will give the Sales Associates a
   realistic skills practice.
4. Observers, you will conduct the feedback session.

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Role Play Conduct the Meeting

• Sales Associates, you complete the steps below

• Establish RapportReconnect with your Seller.
  Ask about the kids, the dog, etc. Thank them for
  agreeing to meet.
• Share Your AgendaAnn and Richard . . . Today, I
  wanted to discuss with you three things
• Whats Happening in this Market
• Progress in Marketing Your Home
• A Plan for Moving Forward
• How does that sound?
• Follow Your AgendaShow how you do what you say
  youll do!
• Ask for the Price Improvement
• Just STOP once youve asked for the Price
  Improvement. Well handle concerns next.

Practice 15 Minutes Feedback 5
Minutes Then Switch!
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Observers Conduct the Feedback Session

• Start with the Sales Associates Ask him/her
  what worked well?
• What would the Associate consider doing
  differently next time?
• Then ask the Sellers What did you think?
• Observers, Share Your Feedback Last What did
  the Sales Associate do well?
• What should they consider for next time?

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Role Play Lets Review

• Sales Associates How did the practice go? What
  worked well?
• What would you consider doing differently next
  time?
• Sellers What did you think?
• Observers What did the Sales Associate do well?
• What should they consider for next time?

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Common Objections or Concerns

• What are some common responses from Sellers when
  you suggest a
• price improvement?
• Could I get someone to help me flip chart
  these?

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Common Responses

• Seller says
• Id like to wait . . . This is just a seasonal
  thing.
• I wont accept anything lower than XX.
• My house is worth more than that.
• Look, I dont have to sell. Ill take it off
  the market.

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Addressing Seller Concerns

• Group Activity
• Well do a round-robin style exercise. Ill toss
  the ball to someone who will address a typical
  seller concern.
• You can consult with the people at your table for
  1 minute and address the concern.
• We can discuss our strategies for handling the
  concern.
• After the first person goes, they can toss the
  ball to whomever they would like.
• Any questions?

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Addressing Seller Concerns
Seller Maybe I should just take the house off
the market.
Sales Associate Given where the market is
currently trending, youre better off to get it
sold now rather than ride the further market
decline.
What would YOU say?
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Addressing Seller Concerns
Sales Associate As a trade up buyer, its
actually never been more affordable for you to
trade up then right now! Let me show you. . .
Trade Up Seller Maybe I should just take the
house off the market.
What would YOU say?
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In recent years,

• Its never been more affordable for the
  Trade-up buyer.

Example
300,000
500,000
200,000
450,000
270,000
180,000
market depreciating at a rate of -10
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Addressing Seller Concerns
Seller This is just a seasonal thing.
Sales Associate Listing Supply has been
consistently increasing throughout the year with
demand tapering since September. Show monthly
active listing chart. Show market absorption
rates by month.
What would YOU say?
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Addressing Seller Concerns
Sales Associate Several factors . . . the
number of foreclosures and short sales have
impacted the value of all homes in our area.
Seller Whats caused this change in the
market?
What would YOU say?
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Addressing Seller Concerns
Sales Associate A greater number of homeowners
trying to cash out on the boom as well as
investors in the market created a significant
increase in inventory supply. With more listings,
buyers have more to look at which slows down the
buying process and gives them greater control of
the market.
Seller Whats caused this change in the
market?
What would YOU say?
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Addressing Seller Concerns
Seller Whats caused this change in the
market?.
Sales Associate First time home buyers have
been priced out of the market. Without them, you
dont have the step ups.
What would YOU say?
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Addressing Seller Concerns
Sales Associate Other sellers have, too. Given
the new listings that have come on to the market
combined with other sellers adjusting list
prices, we need to reassess our competitive
pricing.
Seller Ive already dropped my list price.
What would YOU say?
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Addressing Seller Concerns

• Lets look at the other concerns we brainstormed
  earlier on the flip chart. Which ones here didnt
  we discuss? Lets toss the ball for some possible
  responses to these.

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For more dialogue, tips and strategies on growing
your business in this market, check out the Sales
Associate Resources section on WeichertOne
Go to Weichert University
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Step 4 Secure the Price Improvement
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Step 4 Secure the Price Improvement

• What is your goal here?
• Re-position property list price in a different
  price range to target a new group of buyers.

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Step 4 Secure the Price Improvement

• Its not about reducing the price by X, its
  about positioning the house to sell!

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Step 4 Secure the Price Improvement

• Whats the difference between a Price Reduction
  and a Price Improvement?
• Its a Price Improvement if it repositions the
  property to bring more buyer flow.

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Step 4 Secure the Price Improvement

• Reposition property List Price in a different
  price range to target a new group of buyers

• Price must be adjusted a minimum of 5 and/or
• Price re-positioned in a new range

For Example
Current Price 5 reduction New Range
649,000 617,450 599,000
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Step 4 Secure the Price Improvement

• Price as close to what youre willing to sell.

In a buyers market Myth You need room to
negotiate. Reality You need an ultra
competitive list price to draw traffic/buyer
flow to the property. Period.
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Price to hit the market not chase it
Your Listing
Your Listing
Market
Market
Market
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Follow up Service the Listing

1. Keep in weekly communication with the seller
2. Meet in person with the seller minimally every 3
   weeks
3. Be armed with the facts, update weekly/monthly
4. Improve list price every 30 days

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Action Steps

• Follow the four steps to success
• Step 1 Do Your Homework!Step 2 Make the
  AppointmentStep 3 Conduct the MeetingStep 4
  Secure the Price Improvement
• Go to Weichert Universitys Weichert Toolkit for
  more ideas and suggestions.
• Got questions? Just ask we are here to help.

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All thats left is for you to take action!
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Two week Action Plan

• Complete 2 on-line courses from Weichert
  University
• Securing the Price Improvement - bring
  certificate of completion to next session
• Market Update for local jurisdiction -bring
  print-out to present to class
• These are your entry tickets to attend 2nd
  workshop

• Schedule and hold a Price Improvement appointment
  with one of your sellers and report back
• Should you not have a current seller, select a
  property in your office inventory that you feel
  is over-priced and prepare the market update for
  that listing. Role-play the scenario with an
  associate taking this workshop and report back.
• REMEMBER Practice Makes Perfect!

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• See you in two weeks
• You CAN Do It!

Thought for the Day Determination is not
measured by what you do when you feel like it.
It is measured by what you do when you dont feel
like it. Activities Practice SUCCESS
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