News, articles, and advice for Maine real estate licensees, loan officers, and all professionals who assist the consumer in the real estate transaction.
| Posted by: | Steve Hammond, Founding Partner, TRELG |
| About Steve | Steve's Post Archive | |
| Posted on: | November 14th, 2008 at 2:28 pm |
| Filed under: | Maine, Mortgage and Lending, Real Estate Education, Real Estate Licensing, The Real Estate Learning Group, Your Real Estate Business |
How do we convince the seller that they are asking too much and what is the right price? Let’s take the first part now and deal with the second in another article.
In my opinion, sellers resist reducing the price for many reasons. They need a certain amount to buy their next property, they want to save face, they’re listening to someone else… or what sometimes seems an infinite number of others.
The “need more” objection has to do with qualifications and motivation of the seller as a buyer. Are they really a candidate to sell in this market? Do you really want to invest your time, money and emotional energy in this listing?
All other objections have to do with your credentials and credibility. Other professionals, physicians for instance, have to deliver much worse news than the market rejecting a seller’s price and often get their patients to agree to a much more difficult course of action than we do. How do they do it? Why do we listen to our Dr. but doubt our Realtor®? They have obvious credentials: Professional office setting with highly trained staff, sophisticated diagnostic equipment and certificates on the walls. Many sellers never see our office or are aware of our extensive training. Physicians are likely to give us proofs, when they present their recommendations that we seldom match. It may be time for us to step it up. Speaking of stepping it up, are you extensively or even adequately trained? I hear licensees complain that 55 hours of education, to become licensed, is a burden! Beauticians in this state have to take 1,500 hours of training to be licensed. Is 55 hours really enough? Should you be seeking ways to improve your knowledge and skill after licensure… maybe for your whole career?
When you list the property, it is critical for you to demonstrate your extensive knowledge of the market, (past, present and likely future), as it relates to their property and a comprehensive marketing plan that you will deliver to get their home sold. Most importantly, you must ask and they must agree, that your proposed course of action, (doesn’t that sound more exciting than a plan), is destined to get the best price. The next vital step, after the property is on the market, is to report your progress in delivering on that course of action. Lastly, if the property hasn’t sold in a month, a personal visit is in order. At that visit you will go over the steps that you have taken and the results of that action. You will then re-establish that they believe that the actions are more than adequate and should deliver the desired result. Ask them if they are satisfied with the result. They are usually not. Then ask them “if the problem isn’t marketing, what do you think it is?” If you did your job, they will almost always answer that it must be the price. Reduction accomplished! It’s all in the work you did at the listing presentation.
If you wait till it hasn’t sold, it’s too late.
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