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The LEADER
A Newsletter for Top Producers |
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Proper Pricing to Prevent Property Paralysis
If the seller's price is too high, people will just offer less, right? Wrong! If a property is priced outside the correct price range today, it won't even get a showing. Pricing property incorrectly in today's market can be a huge problem for you and an even bigger dis-service to your clients. Pricing property properly matters!
You've been smart enough to adjust to the current market and change the way you do business, and it's paying off. You're getting more listing appointments with "motivated" sellers. But you're finding that too many of them haven't made the adjustment to the reality of today's market. They still want last year's prices- and they want them now!
Here's a guide to helping the sellers make the right decision on price, the first time you talk to them.
1. Deliver a pre-listing appointment package.
To help reduce seller's anxiety and educate them to the reality of the current market deliver sellers data on the current state of the market, along with your professional portfolio, to review before the listing presentation.
Include graphics showing the number of properties on the market, time on the market, pending sales prices and trend lines illustrating where the market has been and where it's going.
2. Listing presentation should focus more on price than on marketing and advertising.
The number of ads you run and the number of open houses you have will not determine the success of the home selling process. What will determine success is rather or not the property is priced to sell in today's market. Get the sellers focused more on price than on marketing to assure your success.
3. CMA is COMPETITIVE Market Analysis.
When you meet with the sellers, explain the market information in a way that hits home. Sellers frequently make a decision about what their property is worth based on what neighboring properties are listed for. You have to explain the difference between properties that are listed for sale and those that have actually sold.
It's also important to demonstrate the total, areawide number of homes for sale in the seller's price range. Most agents show sellers only the homes for sale in their own neighborhood, but showing them that there are 300 homes in the same price range points out the competition the seller is really in for the limited number of qualified buyers in the market.
4. Convert price to time.
If there are 30 homes for sale in the seller's neighborhood and only 10 have sold in the past 12 months, explain to the seller this means there is a 3 year supply of homes available for buyers. Are the sellers prepared to wait 3 years to sell? If not they must make the property more attractive to the buyers who are ready to buy today.
5. Take sellers on a tour.
If your sellers are having a hard time adjusting to the reality of today's prices take them on a tour of the competition. Have the sellers preview, as buyers, 3-5 properties in their area that are priced competitively and that you believe will sell in the next 30-60 days so they can see what they are competing with.
6. Who really establishes value?
It's important to explain to the seller your job is not to establish price, but to provide them information on what buyers are actually paying for properties in their area. (Not properties "like theirs"!) It's up to the seller to decide, based on the information you have provided, where the seller would like to enter the market.
7. Test the market.
Nobody can predict what a property will sell for. What we are doing when we place a property on the market is "testing the market". If the property sells, we passed, if it doesn't sell, we failed and we must make a realistic adjustment.
8. Get a postdated price adjustment approved.
It makes no sense to take a listing and let it sit on the market month after month waiting for a miracle. Ask the seller to approve a postdated price-adjustment form that you can submit automatically after 30 days if you don't get the results you desire.
9. Don't take it, if you can't sell it.
Remember you are a real estate professional not a magician. Properties are selling, if they are priced right and in the right condition. If you can't bring the property on the market at the right price, explain to the sellers you would love to work with them but you don't want to waste their time and get their hopes up only to disappoint them later. Move on to the next seller who really does want to sell. |
| Time Management Tips | Do you feel stressed because you have more to do than time to do it? Well maybe it's not how much time you have but rather how you are spending your time! Here are some time management tips to help you get more done in less time and relieve some of the stress you now feel.
- Write down your long-term goals. Use the SMART formula; make them Specific, Measurable, Appropriate, Realistic and Time-bound.
- Every day, divide your tasks into A, B and C priorities. Always start with a high priority "A" task, even if you can only accomplish a small part of it.
- Block off time for activities that are important. Make an appointment with yourself, and don't let anyone schedule anything for the time you've put aside.
- Stop spending time on trivia. You don't need a new voice mail message every day. Don't spend hours preparing a high tech presentation when a good conversation will suffice. And stop fussing over routine administrative tasks. Delegate or automate them.
- Have the courage to say no. Don't try to please others all the time. Create personal policies that make it easy to say no and stick to your plan.
- Always start meetings on time. Don't punish those who show up on time and reward those who are late. Do something however minor, but get started.
- Slow down. Productivity isn't about going fast. It's about doing the right things. Stop rushing around, driving too fast and getting upset at things you can't control. A couple of minutes gained aren't worth the added stress.
- Avoid procrastination by completing unpleasant tasks first. The tough stuff usually turns out to be not so bad. Break complex tasks into easy pieces and give yourself a reward for getting something done.
- Don't be a slave to technology. Communication devices are simply adding more and more ways to be out of touch with each other. Simplify your life and leave your phone at home. Plan for people to reach you some of the time, not all of the time.
- Create time for balance in your life. Set aside time for family, fitness, social, educational and spiritual needs. Plan for balance the way you plan for work.
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Featured Article | |
Bill's 12 Steps to Mastering Change
Always do what you always did, always get what you've always got! Here are 12 steps to help you embrace the opportunities that come with every change.
STEP #1
Adopt the 3 C's of change. You must feel challenged and stimulated by change. You must have a sense of control. You must be committed to what you are doing.
STEP #2
Build motivation through goals and passion. Goals give you focus, direction and help to instill "passion of mission."
STEP #3
Stay committed when the going gets tough. Stay focused on the outcome. Commitment gives you energy and strength. These qualities are essential when dealing with change.
STEP #4
Know when to control and when to let go. Being in control means being flexible enough to bend when you need to.
STEP #5
Dealing with setbacks. If you are not failing, you are not trying hard enough. Learn how to turn your setbacks into comebacks.
STEP #6
Always be optimistic. A happy person is not a person in a certain set of circumstances, but rather a person with a certain set of attitudes.
STEP #7
Use humor to cope with change. Laughter reduces tension and makes change less stressful.
STEP #8
Learn from your mistakes. Mistakes are essential for success. Within each error we can find the data needed to become more successful in the future.
STEP #9
Maintain your perspective. Perspective is the essence of change management. Without it every change is a big deal. With it, events occupy a place relative to their true importance.
STEP #10
Fine tune your body. You can't effectively manage the stress of change if you don't take time to take care of yourself by eating right, getting regular exercise and the proper amount of rest.
STEP #11
Build your self confidence. Dealing effectively with change and stress starts with your own self-esteem. You must believe in your ability to handle change.
STEP #12
Help yourself by helping others. By cooperating rather than competing you'll be more productive and handle change more effectively.
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| A Really Great Idea | |
The National Association of Realtors has rolled out a comprehensive program called "Surround Sound" to tell a more balanced and accurate story of what's happening in real estate markets around the country.
To help get the word out that all real estate is local, that real estate is a good long-term investment, and that home ownership continues to be an important part of building strong communities.
The campaign includes more than 10,000 radio and television spots, customizable print ads for local associations, a public relations media tour by NAR leadership, and statistical news releases that demonstrate the favorable conditions for buyers.
Visit the Surround Sound Web page at www.REALTOR.org to learn more and find tools-such as a speech, sample letters to the editor, and market data-that you can use to send positive messages to your community. |
| We Can Help You! | |
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Now at an introductory price of only $149.00 for the complete 90 day program. This includes the complete system and your personal coaching with Bill.
Bill Fields Training Systems
936 79th St. S
St. Petersburg, FL 33707
"People are persuaded more by the depth of your conviction than by the height of your logic".
Will Rogers |
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