Seller Pricing Strategies Pricing Your Listing to Sell

MAIN IDEAS Course Page 5

Main Ideas Perspective on Pricing Strategies Study Your Market Approach Sellers Get the Right Price! Manage Your Listings in a Buyers’ Market Course Page 5

PERSPECTIVE Course Page 7

Perspective on Pricing Strategies When the market shifts toward a buyers’ market, the listings sit! Don’t let that happen to your sellers. In a buyers’ market, real estate becomes a commodity. Only properties in good condition and priced right will sell in a buyers’ market. Price can correct bad condition—but condition won’t correct bad price. Correct pricing represents 80% of your marketing effort. Course Page 7

Perspective on Pricing Strategies Your Role in a Buyers’ Market When houses sold in a matter of days, agents were undervalued, but now customers need you for your Pricing strategies Market knowledge Buyers Fiduciary commitment Knowledge of financing options Negotiation skills Course Page 8

Perspective on Pricing Strategies What Are the Opportunities? - Opportunities for Agents - Opportunities for Sellers Course Page 9

Get Ready, Get Set, Go! SHIFT happens! Maximize your effectiveness as a consultant to your sellers. Get Ready! – Study your market Get Set! – Prequalify your sellers, update your listing presentation Go! – Get the right price Course Page 10

Getting the Most Out of This Experience The Prisoner Has to be there, doesn’t want to be there, and doesn’t know why they’re there. The Vacationer A day in training is Better than a day on the job. The Explorer Excited and curious about the new knowledge, skills, and tools they will discover in class. Doesn’t engage Spends as much time chatting as listening Listens attentively, then participates fully in discussions and exercises Spends class time catching up on their emails There to have fun—distracts the class with irrelevant comments Asks meaningful questions and contributes compelling aha’s Escapes by spending time in the hall on their phone Returns late from break and lunch Arrives to class on time and returns promptly from breaks Holds on to limiting beliefs Not purposeful in their learning goals Adopts a posture of acceptance Multi-tasks on their computer by working on side projects OMG! Spends the day on their smartphone, texting and checking Facebook Takes notes in their manual for future reference Picks fights with trainer or other participants if they don’t agree Isn’t paying attention Respects the different learning styles and opinions of others Hopefully, you picked “The Explorer!” Course Page 11

STUDY YOUR MARKET Course Page 13

Study Your Market Be the Local Market Economist Be more knowledgeable than the headlines—research the local conditions and trends that will affect them. Preview more properties to get a better understanding of what is on the market. Course Page 13

Study Your Market Analyze the MLS Take time to study and internalize the statistics that are reflective of your market and which matter to your sellers. Choose numbers and statistics from the MLS and use the data in a sentence later that same day. Choose a partner from your team or Market Center with whom you can practice the numbers. Meet weekly. Course Page 14

Study Your Market Analyze the MLS Use your local MLS to track market numbers in their price range. Take the shifting market into consideration when evaluating the comparables. Get the big picture. Buyers will prioritize the deal, rather than the area. Your sellers are competing with homes in their price range all over town. Course Page 15

Study Your Market Use Formulas and Graphs Enhance the raw data from your MLS by using formulas and graphs to illustrate the market to your sellers. TIP Practice the math before your listing presentation until you are confident with the numbers, but for a powerful presentation, take copies of the MLS data and work out the figures together with your sellers. Course Page 18

Study Your Market Use Formulas and Graphs The Activity Index The number of properties going under contract compared to the number of active properties on the market. Actives + Pendings Pendings = Activity Index Course Page 18

Study Your Market Use Formulas and Graphs The Absorption Rate The absorption rate will tell you how many months of inventory you have on the market. It demonstrates how long it would take to sell all the homes on the market if no other homes were to come on the market. Number of active homes on the market Number of homes sold in the last 30 days = The Absorption Rate Course Page 20

Study Your Market Use Formulas and Graphs Graphs Many people respond well to visual information. Show your sellers the MLS statistics by using vivid, clear, and colorful graphs. TIP Use Microsoft Excel when plotting your graphs, or get help from your Market Center. There are also online services and software programs that you can use to create graphs. Course Page 21

Study Your Market Use Formulas and Graphs Course Page 22

Career Growth Initiative   Listing Management Listings (Monthly) Pipeline (Buyers/Sellers) VALUE GCI Agent Trend Agent LORE Local Expert Course Page 23

Career Growth Initiative Course Page 24

APPROACH SELLERS Course Page 25

Approach Sellers Find the Motivated You can only afford to work with the very motivated. Prequalify your sellers before you make the listing appointment. Course Page 25

Approach Sellers Update Your Listing Presentation Tell the Truth You are not doing your sellers any favors if you are tempted to soften the blow in order to get the listing. Care enough about them to be strong up front and get the right price. Course Page 26

Approach Sellers Update Your Listing Presentation Leverage the Media Clip out articles from the newspaper that support your position and send them to your sellers. Back up the news stories with your own hard data. Course Page 27

Approach Sellers Update Your Listing Presentation Listen for Responsiveness Return to their motivation if you sense they are not receptive, and determine whether or not you want the listing. Some sellers may not be able to face reality and won’t be able to list their home at the price needed to sell it. Course Page 27

Approach Sellers Update Your Listing Presentation Learn New Scripts and Dialogues To present MLS data effectively, you will need to speak with confidence to educate your sellers and vividly illustrate the new reality of their market. Take the time to learn new scripts so you are confident and polished during your presentation. Choose a partner from your team with whom you can practice. Course Page 28

Approach Sellers Update Your Listing Presentation Communicate Effectively Practice scripts and dialogues. Focus more on your sellers’ need to express themselves. Keep them talking and LISTEN to what they tell you. Course Page 29

Approach Sellers Update Your Listing Presentation Be Prepared to Answer Objections Address objections before they come up. Send out a thorough CMA in your prelisting package. During the listing presentation, bring up objections yourself and then sweep them away. Course Page 30

GET THE RIGHT PRICE Course Page 33

Original Price is Critical Get the Right Price! Don’t Miss the Window of Opportunity Original Price is Critical If a buyer believes a house is poorly priced, they will write it off from the start. Even if the price is subsequently reduced several times or home improvements are made, the best chance for selling is lost forever. For homes that have a price reduction, the time to sell increases by two to three times. Course Page 33

Get the Right Price! Allow Your Sellers to Self-Discover Ask simple questions: “Looking at all the comparables here in the MLS for your neighborhood, how much would you be willing to pay for your house if you were a buyer today?” “Given what I’ve shown you about the market, what do you think your house will sell for?” - “Look, what do you think we need to do? Here are the numbers.” Course Page 33

Get the Right Price! Tell the Tale of Two Markets: Sellers’ Market Great Poor Condition vs. Comps Above Below Price vs. Comps In the Market Out of the Course Page 35

Get the Right Price! Tell the Tale of Two Markets: Buyers’ Market Great Poor Condition vs. Comps Above Below Price vs. Comps In the Market Out of the Course Page 36

Get the Right Price! Tell the Tale of Two Markets: No-Man’s Land Course Page 36

Get the Right Price! Tell the Tale of Two Markets Fill in the chart on pg. 30 of your guide Think of current listings in your market that you consider “IN the Market,” “OUT of the Market,” and in “NO-MAN’S-LAND.” Now think of what price adjustments would have to be made to the listings that are in “NO-MAN’S-LAND,” and “ON the Market” in order to get them “IN the Market.” Course Page 37

Get the Right Price! The Law of Supply and Demand When pricing their home, sellers need to obey the law! Course Page 38

Get the Right Price! The Law of Supply and Demand How can you use MLS Statistics to explain the effects of supply and demand in your market? Course Page 38

Get the Right Price! Don’t Chase the Market Whether the market is going up or down, you want to price your listings ahead of the market—ahead of it on the way up and ahead of it on the way down. “You’re in a race against time. The best price you’ll get is the one you get now. If you wait, it will be lower.” Jackie Ellis Boynton Beach, Florida Course Page 39

MANAGE YOUR LISTINGS IN A BUYERS’ MARKET Course Page 41

Manage Your Listings in a Buyers’ Market Offer Phenomenal Customer Service Increase frequency of communication. Increase frequency and unique timing of open houses. Send your sellers regular market information updates. Course Page 41

Manage Your Listings in a Buyers’ Market Get Price Reductions Overpriced Listings There are very few overpriced listings that are too overpriced to take. If you take overpriced listings, three elements will help you get the right price. Time Your strengthening relationship Market statistics Course Page 43

Manage Your Listings in a Buyers’ Market Get Price Reductions Schedule your reductions Get into the next bracket Keep carrying costs low Mind your language Know when to call it quits Course Page 43

Manage Your Listings in a Buyers’ Market Auction Your Listings Create desire for your listings by marketing well-priced and staged properties as “Coming Soon.” Establish correct market price Have property inspected and staged Put up “Coming Soon” yard signs with the date of the MLS opening Wait a week to ten days without showing the house Announce the opening Sell the house! Course Page 47

Manage Your Listings in a Buyers’ Market Offer Seller Concessions Learn about the seller concessions and real estate financing concepts that create a competitive edge. Work closely with a trusted loan officer who is knowledgeable about the details. RESOURCE For more details on seller concessions, see SHIFT Tactic 10: Financing Solutions, from Keller Williams University. Course Page 48

The Bottom Line There may be no single factor more important to getting a home sold than its price. Your local expertise and market knowledge are the key to getting your sellers to price their homes to sell. Let the numbers do the heavy lifting. Arm yourself with the facts and figures and use formulas and graphs to explain the current market to your sellers. Course Page 49

My Action Plan Don’t put away this guide without developing a plan to put what you have learned into action! Refer to the Action Plan on pages 55-57 of the guide to assess your strengths and areas for improvement. Write down steps you will take to improve your skills—complete it, share it, and commit to it! Course Page 55

Take the other courses in the SHIFT Tactics series! Gaining Mind over Market Upshifting Your Lead Generation Seller Staging Strategies Lead Capture and Conversion Internet Lead Capture and Conversion Creating Urgency to Buy Bulletproofing Transactions Expense Management Effective People Leverage  Short Sales, Foreclosures, and REOs Financing Solutions

From Aha’s to Achievement Course Page 58

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