Value and Pricing Message to the Seller

1
Value and Pricing Message to the Seller

• You always choose the price
• You decide whether or not to take an offered
  price
• You decide whether, when, and how much to change
  or adjust the price

2
My Job as Your Agent

• To do extensive research and apply my experience
  and expertise to determine a price that a
  qualified buyer is likely to pay in the current
  market
• To use tools and skills to market the property
  and get qualified buyers in the house
• To represent you to negotiate the highest price
  and best terms
• To represent you through the myriad of other
  negotiations and difficulties and ensure that all
  parties do their jobs to get the sale closed.

3
Pricing Message to the Seller

• Have you ever been frustrated that a seller
  relisted with another agent after youve worked
  conscientiously for 6 months?
• I couldnt get the sellers to agree to my price.
  Then they go and list with another agent at my
  price and it sells in a week.

4
You dont have a price

• You have a price recommendation

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Only the Seller has a price

• When your price recommendation disagrees with
  their expectation, they get edgy.
• When you start talking about your price the
  seller can take it as a competition over whose
  price is RIGHT
• Create a cooperative, not a competitive,
  relationship with your client

6
This is my job

• To market your property
• To attract qualified buyers
• To attract agents that have qualified buyers who
  will pay you the highest possible price.

7
Regarding the price

• My job is to research all the possible
  information that affects your price, analyze the
  information, show it to you, and make the best
  possible pricing recommendation.

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Then you can choose

• You can choose to take my recommendation or
  choose a different price.
• The price is always in your hands, not mine
• So I will make a recommendation based on facts
• Ill advise you, give you the best information
  and recommendation possible.
• The decision on pricing is always completely
  yours.
• Does that make sense? (DONT TALK!)

9
The Close

• Whether you choose to put the house on the market
  at the price the market indicates, or you choose
  something higher or lower, I will put my entire
  marketing effort to work, and no one will work
  harder, or smarter, or get you more money.

10
You Gotta Give a Little to Get a Little

• This pricing message is just acknowledging the
  truth
• The seller has complete control over priceafter
  all, whos been making the payments? You or the
  seller?
• When you put the responsibility where it belongs,
  IN THE SELLERS HANDS, you have much more
  CONTROL.

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p.s.

• This approach must accompany a clear, strong plan
  for marketing the property to get the highest
  possible price.

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Personality Types and Pricing

• Engineer or Accountant? Mother to All or Party
  Animal?
• Knowing a little about your seller will help
  you convey your message so that they understand

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Clues to Personality Types

• On the phone, are they
• Formal?
• Relaxed?
• Cautious?
• Guilty of TMI

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Their Home

• Do they have an excel spread sheet of every
  repair and improvement since they bought the
  house?
• Are they name dropping their decorator, their
  furniture, their window treatments and their
  cabinet pulls?
• Are there photos of every moment of every childs
  life, something cooking in a crockpot, and fish,
  gerbils, hamsters, dogs, cats, and hermit crabs?
• Is absolutely everything EXACTLY where it
  belongs?
• Can you see the floor anywhere in there?

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What those clues might mean

• Ds are in a hurry and do not want a thousand
  details. Get to the point. Give them the
  upside, the downside, and shut up. Know your
  data, but give them the big picture, cost and
  benefit.
• Be on time
• Talk in short sentences, and talk fast
• Theyll go into a coma or throw you out the door
  if you give them every detail.
• They want to know what you ll do, how fast you
  can do it and how much you can reduce the hassle

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The Cs

• Cs must have every detail. They are often
  engineers or accountants, and they not only need
  those details, they need to process all that
  information. Dont embellish, dont over sell,
  just know your facts, and give them the time they
  need. They are cautious by nature and pushing
  them will not be productive. Respect their need
  for detail, and they will be clients for life

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Is are Fun

• Its all about them, so dont bore them with
  anything else.
• Their homes have glitz and glam, and they live to
  impress, so be sure to appreciate them and their
  stuff.
• They can be competitivewant to have the best
  house that sells fastest and at the best price
• They want to have fu-un selling their house
• Be perky, but not quite as perky as them
• They can be great refer-ers!

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Ss are all about feelings

• They can be emotional, concerned about how a move
  will affect their family
• They really really really dont like conflict
• They might value comfort over style and have a
  hard time understanding great showing condition
  because their 6 kids and 4 dogs and a couple of
  cats rule the roost.

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Be a chameleon

• Play the DISC game with your family
• Go online and test yourself
• Understanding the needs and fears of each
  personality type will give you a better
  understanding of how to communicate clearly and
  effectively not only with your clients, but your
  family and friends as well
• Focus on the other person always

20
Scripts

• Be prepared for the objections sellers use.
• Their JOB is objections
• yours is knowing how to handle them!

21
Market Determines Value

• I bring the market, the market brings the price

22
Market determines Value

• I dont tell you what your home is worth.
  Instead, the market determines value, just like
  the automobile market, the oil market, the shoe
  market Together you and I determine the price
  you want to offer to the market

23
Market determines Value

• When we list your home, we are saying to the
  market
• This is what we have to sell, and this is what
  we want for it.
• Then, when buyers look at the house, the market
  tells us pretty quickly what they think of what
  we have, and what we want for it.

24
Need the money

• I know you need the money, but, unfortunately, I
  am not Santa Claus, I am not a magician. I cant
  re-create the market for you.
• I cant give you that money. I would if I
  could, but I cant.
• If you bought Microsoft at 50 a share in
  November, and its selling for 45 today, how
  much would you get for it today?

25
Over improvement

• Improvements are Bells and Whistles which may
  speed up the sale, but wont necessarily bring a
  higher dollar.

26
Over improvement

• If youd known you were going to move, would you
  have invested in those improvements?

27
Setting up the CMA

• Let me show you what our research has
  discovered, then we can talk about your feelings
  on price

28
Lets be Honest

• It doesnt do me any good to list the home at a
  price where its not going to sell. All that
  will happen is youll continue to make
  (1,000)-a-month payments for the next three or
  four months. The listing will expire and thatll
  just leave a bad taste in your mouth for me and
  for the real estate industry. I am going to tell
  you the truth and all I ask of you is that we
  have a bilateral agreement to tell each other
  what we think, always.

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Explaining Market Fluctuations

• As you can see, Mr./Mrs. Seller, if you
  purchased your home 8 years ago, youll be able
  to sell it for more than you paid. However, if
  you bought it within the last 2 years,
  unfortunately the market has softened and youll
  not be able to sell it for as much as you paid.
  And if you bought it 5 years ago, youll be
  selling it for the same price you paid. Can you
  see how this information can help you to price
  your home so that it will sell in todays market?

30
YOU decide

• You decide the listing price you decide how easy
  or difficult youre going to make it for us to
  show you decide whether or not youre going to
  put it in good condition you decide whether you
  are going to be cooperative on financing options
  and closing costs. I dont decide any of that,
  and neither does the buyer or the buyers agent.
  Youre 100 in control.

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• Additionally, I cant make the buyer pay what you
  might want, any more than I can make you take
  what the buyer offers. You are in control, you
  have the final say over the sale of the house,
  so how marketable do you want to make your
  property?
• (DO NOT TALK!)

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80 of marketing is price

• Mr./Mrs. Seller, were doing 80 of the marketing
  of your home right now as we discuss price. We
  could put it on the market at 20,000-30,000
  over market, spend 10,000 marketing it, rent
  airplanes to fly banners all over the city, but
  it would do no good because its overpriced. You
  attract attention and buyers by pricing correctly
  at the outset. Thats why 80 of marketability
  is being done while we have this discussion.
  Does that make sense?
• (DONT TALK!)

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Declining Market Never Chase the Market

• Mr./Mrs. Seller, as you can see, the market is
  declining at a rate of approximately __ per
  month and has done so for the last (6) months.
  One thing you need to do is place your home in
  front of the declining trend. In fact, in this
  type of market, you NEVER want to price your home
  higher than the last sale. Instead, you want to
  price it just under the last sale so you can be
  ahead of the market. If you dont then you get
  in a situation where you are chasing the market
  down, and thats one thing you never want to get
  caught doing. You dont want to be behind the
  market, do you?
• DONT TALK!

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Setting Expectations

• How many showings are properties taking before
  receiving an offer?
• Prepare the seller for a market review in 30 days
  or 15 showings, whichever comes first. Set that
  30 day appointment at your listing appointment.
• Consider writing a price reduction into the
  listing agreement
• Translate price objections from the start

35
Distressed Properties

• If you dont know what you are doing, find
  someone who does or go get yourself educated!
• Saving someone from foreclosure is like walking
  on shifting sand, but its a privilege and a duty
  for professionals.
• Helping someone in need is the surest way to feel
  good

36
From my sellers

• There are at least 2 people in this world that
  you would die for
• At least 15 people in this world love you in some
  way
• The only reason someone would hate you is because
  they want to be just like you
• Every single night, someone thinks about you
  before they go to sleep
• You mean the world to someone
• You are special and unique
• Someone you dont even know exists loves you
• When you make the biggest mistake ever, something
  good comes from it
• When you think the world has turned its back on
  you, take another look
• Always remember the compliments you receive.
  Forget the rude remarks
• Happiness keeps you sweet
• Trials keep you strong
• Sorrow keeps you human
• Failures keep you humble
• Success keeps you glowing
• God keeps you going

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• Worry looks around
• Sorry looks back
• Faith looks up

38
New Preamble to the Constitution

• Attributed to Mitchell Kaye from Georgia

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We the sensible people

• In an attempt to help everyone get along, restore
  some semblance of justice, avoid more riots, keep
  our nation safe, promote positive behavior, and
  secure the blessings of debt-free liberty to
  ourselves and our great-great-great-grandchildren,
  hereby try one more time to ordain and establish
  some common sense guidelines for the terminally
  whinny, guilt-ridden, and delusional.

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We hold these truths to be self-evident

• That a whole lot of people are confused by the
  Bill of Rights, and they require a bill of
  NON-Rights.

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Article 1

• You do not have the right to a new car, big
  screen TV, or any other form of wealth.

42

• More power to you if you can legally acquire
  them, but no one is guaranteeing anything.

43
Article 2

• You do not have the right to never be offended.

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• This country is based on freedom, and means
  freedom for everyone not just YOU! You may
  leave the room, turn the channel, express a
  different opinion, etc
• But the world is full of idiots, and probably
  always will be.

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Article 3

• You do not have the right to be free from harm

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• If you stick a screwdriver in your eye, learn to
  be more careful
• Do not expect the tool manufacturer to make you
  and all your relatives independently wealthy

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Article 5

• You do not have the right to physically harm
  other people

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• If you kidnap, intentionally maim, or harm
  someone, dont be surprised if the rest of us
  want to see you incarcerated indefinitely

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Article 5

• You do not have the right to the possessions of
  others.

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• If you rob, cheat or coerce away goods or
  services of other citizens, dont be surprised if
  the rest of us get together and lock you in a
  place where you still wont have the right to a
  big screen TV

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Article 6

• You do not have the right to a job

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• All of us sure want to help you to have a job,
  and will gladly help you along in hard times, but
  we expect you to take advantage of the
  opportunities of education and vocational
  training laid before you to make yourself useful.

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Article 7

• You do not have the right to happiness

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• Being an American means you have the right to
  PURSUE happiness, which, by the way, is a lot
  easier if you are unencumbered by an
  overabundance of laws created by those of you who
  were confused by the Bill of Rights