Working with sellers part - 2
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This document provides guidance to real estate agents on various aspects of working with sellers. It discusses maintaining control during presentations while building rapport, being prepared to answer common seller questions, and emphasizing personal experience and marketing strategies in a brochure. It also outlines the listing to offer acceptance process, importance of follow up, pricing strategies like comparative market analyses, and handling overpriced listings. Negotiation tactics from both agents and sellers are reviewed, along with the importance of customer satisfaction and follow up after a closing.
Working with sellers part - 2
- 1. RE/MAX Mumbai Gujarat Maharashtra WORKING WITH SELLERS Part - 2 Sahil Shah
- 2. RE/MAX Mumbai Gujarat Maharashtra Length of the Presentation Consumer’s time is money Building rapport is crucial Focus on presentation Maintain control by asking question Sell yourself and RE/MAX first Ask price last as if you already have the listing
- 3. RE/MAX Mumbai Gujarat Maharashtra Be ready for these questions… • How long have you been in real estate? • What is the average number of days on the market for your listings? • What is your list to sale price ratio? • May I have a copy of your marketing plan? • What do you know about our area? • Have you sold any homes in our area? • What is your professional fee? • What is the standard duration of a listing contract? • Does my home need any repairs? • At what price range would you market my home? • Do you have any references? • If you don’t have a track record, use your office statistics
- 4. RE/MAX Mumbai Gujarat Maharashtra Personal Brochure • Community expertise • Many satisfied customers (use testimonials) • Personalized service • Company that has listings/out of town buyers in their price range • Successful marketing plan • Outstanding feature sheets • Open houses
- 5. RE/MAX Mumbai Gujarat Maharashtra Listing to Offer Acceptance • Sign installed • Title search • Enter listing into database / website • Notify your buyers • Thank-you for the listing card • Feature sheet • Progress report – form • Advertising – when, where • Follow-up on all showings • Price reduction
- 6. RE/MAX Mumbai Gujarat Maharashtra Never show need Enthusiasm is critical asset Follow-up is important Most recent information is what the seller remembers Make it easy for the seller to sign
- 7. RE/MAX Mumbai Gujarat Maharashtra Pricing !!! 80% of the marketing takes place the moment the asking price is set Get a Comparative market analysis (CMA) going Current homes listed, their expected price, previous homes sold, homes that did not sell because of being overpriced New inventory coming up in same market
- 8. RE/MAX Mumbai Gujarat Maharashtra Market Conditions Balanced market : 4-6 months inventory Seller’s market : 2 month supply Buyer’s market : > 6 months inventory
- 9. RE/MAX Mumbai Gujarat Maharashtra Is he trading up? • A buyer’s market is ideal • A seller’s home was Rs.20,00,000 and based on the current buyer’s market must take 5% less or Rs.19,00,000, a loss of Rs.1,00,000. Their next home would have had a purchase price of Rs.40,00,000, however, due to the buyer’s market they can buy it for 5% less or Rs.38,00,000 – a saving of Rs.2,00,000. • The seller saves Rs.1,00,000 by selling and moving up in a buyer’s market. • Now if prices bounce back and go up 5%, your seller will gain Rs.38,00,000 x 5% = Rs.1,90,000 whereas if they stayed where they were they would only gain Rs.19,00,000 x 5% = Rs.95,000. A net gain of Rs.95,000 (double)!
- 10. RE/MAX Mumbai Gujarat Maharashtra Condition of the Property Price matches the condition Location, size, amenities, features Staging results in better value as house becomes best buy in the price range Least expensive in a higher price range Initial Impression is important
- 11. RE/MAX Mumbai Gujarat Maharashtra Overpriced Listing • Some Sales Associates won’t take an overpriced listing for the following reasons: – It reflects badly on their image – They cost more to market – They monopolize your time • Many Sales Associates will take an overpriced listing: – They provide a marketing opportunity – When the seller is motivated and must sell Price may be reduced
- 12. RE/MAX Mumbai Gujarat Maharashtra Dangers in Overpriced Listings It can result in a home not selling at all. It can result in very few, if any, showings. It can result in a home selling for less money than it should. It can result in a home sitting on the market for long periods of time, resulting in a very frustrated seller. It can result in numerous price reductions which will eventually make buyers wonder what is wrong with the property. It can lead to a difficult, emotional and unsuccessful negotiation process. It can hurt sellers, because Sales Associates are not motivated to list or show their home.
- 13. RE/MAX Mumbai Gujarat Maharashtra • It can hurt the overall image of a real estate firm and listing Sales Associate, because of having a reputation for overpricing. • It can result in a real estate firm and listing Sales Associate receiving less call-in and walk-in leads. • It can cause a home to become stale on the market. • It helps realistically priced homes to sell faster by acting as a negative comparison. • It can lead to serious listing Sales Associate frustration. • It can lead to the seller wanting to take their house off the market. • It can result in the seller wanting to cancel their listing agreement, because the first thing that sellers blame when their home does not sell is the Sales Associate - not the price! • This will then cause a loss of referral business.
- 14. RE/MAX Mumbai Gujarat Maharashtra If you do get an accepted offer, it could lead to numerous appraisal problems. It can lead to extreme emotionalism and anxiety - selling your home ranks in one of the top ten most stressful things people do - and a home not selling makes it even worse! It can result in real estate firms and Sales Associates having to agree to reduce their listing and sales commissions which is unfair as an overpriced listing gets advertised for longer. It can result in real estate Sales Associates having very short careers.
- 15. RE/MAX Mumbai Gujarat Maharashtra Negotiating with Sellers Typical objections Price is too high Commission is too high. Need to speak to my lawyer Bad market
- 16. RE/MAX Mumbai Gujarat Maharashtra How to handle: • Echo (Question back objection) - Find out what the objection really means. • Paraphrase - be more specific. • Advise / Counsel - “seek to understand” what the objection means and how it will affect them. • Sell features and benefits. Deal with the objections rather than avoid them and then move on to the benefits and the wonderful features. • Negotiate - look for the solution and as a final step give concession for concession. • Know when to walk away and find new prospects...there are plenty more.
- 17. RE/MAX Mumbai Gujarat Maharashtra Seller Objections • We want to look before we list. • I have a friend or relative in the business. • Can’t we just try it at this price? They can make an offer. • Another Sales Associate said they would list for a higher price. • We need more money. • Negotiating a low offer or price reduction with seller. • We want to only give you a 30/60 day listing. • I’ve never heard of you before. • Let’s list high; we can always come down later. • We want to think it over. • You’re too new, or inexperienced versus other experienced Sales Associates. • I want you to cut your commission.
- 18. RE/MAX Mumbai Gujarat Maharashtra Commission Service Feedback • Overall impression • Did I look after special needs? • Would you use me again? • Product Knowledge • Would you refer me? • Response time • Professionalism • Listing presentation Did you pay my FEES ???
- 19. RE/MAX Mumbai Gujarat Maharashtra Where does commission go? Broker Office Selling Broker Associate Additional Agent in transaction Advertising/Sign Petrol Telephone Bills Printing Office Expenses
- 20. RE/MAX Mumbai Gujarat Maharashtra Commission Objectives Seller asks you to do it for less. The other Sales Associate will do it for less. We’ll save the commission by selling it ourselves. Don’t open the commission cutting door. Sales Associate’s signature first.
- 21. RE/MAX Mumbai Gujarat Maharashtra Follow Up System Thank you letter Information or graphs comparing yourself / office to other Sales Associates in the market place Info on preparing their home for sale Info on the team
- 22. RE/MAX Mumbai Gujarat Maharashtra • Set up a weekly or bi-weekly market report for your active listings. • Send each client a report with the following: – Number of homes currently listed – Number of pending sales in the last 30 days – Percentage of homes selling per month – Average sales price over the last 30 days – Number of days on market for homes sold over the past 30 days – A list of your marketing activities over the past two weeks to get their home sold
- 23. RE/MAX Mumbai Gujarat Maharashtra Price Reduction • Call after every bi-weekly status report and ask for a price reduction. • Include an addendum in the listing contract where the seller agrees to meet with you in your office every month to review the price. New listing copies to • Client mailing list • Lead list • Top Sales Associates • Lower priced listings in the area
- 24. RE/MAX Mumbai Gujarat Maharashtra After Closing • Call your clients the day of closing to make sure that there isn’t anything that they need before going to the closing. • Call them the morning after closing to make sure that everything appears in order. Most real estate Sales Associates dread making this call. Don't be one of them. • Call them, either on moving day or shortly thereafter, to find out if they have found anything that might require your assistance. • Call or e-mail them at week two to make sure that everything is still OK and if there is anything you can do for them. • Call or e-mail them at week four to find out how they like their new neighborhood. • At week six and week eight do a quick e-mail or call to make sure that everything is in order, and then transfer the closed client to your "past client" care program. • Call them and sincerely thank them for the business. Handwritten notes
- 25. RE/MAX Mumbai Gujarat Maharashtra Customer Satisfaction • Results – their home sells faster than the market standard at the time. • The process was one with little inconvenience and problems were dealt with quickly. • As their Sales Associate, you were knowledgeable, professional and thorough. • Regular communication- .accessibility. • They feel respected • You appreciate the business and followed-up after the closing and thanked them.
- 26. RE/MAX Mumbai Gujarat Maharashtra Handling Complaints • Respond quickly. Don’t let the issue fester and blow itself out of proportion. • Handle the situation in person. Don’t delegate. • Stay calm, even if you feel the complaint is not justified. • Show genuine concern. Ask what the client feels should be done. • Accept responsibility to clarify or rectify the situation even if responsibility for creating the problem is not directly yours (e.g., It was created by another party to the transaction). • Negotiate and settle the problem promptly. • Follow up after the fact.
- 27. RE/MAX Mumbai Gujarat Maharashtra Avoid the 8 Biggest Selling Mistakes • Mistake #1. Wrong Price • Mistake #2. As-Is Condition • Mistake #3. No Curb Appeal • Mistake #4. Not Making Your Home “Fit to Sell” • Mistake #5. Lavishly Over Improving • Mistake # 6. Not Using a Professional • Mistake #7. Not Disclosing Defects • Mistake #8. Playing tough to lose deal altogether
- 28. RE/MAX Mumbai Gujarat Maharashtra Negotiation Rules You negotiate all the time. Anything you want is presently owned by someone else. There are predictable responses to strategic maneuvers in negotiating. There are three critical factors to every negotiation: awareness, information and timing.
- 29. RE/MAX Mumbai Gujarat Maharashtra Three stages in negotiation • Establish criteria • Get information • Reach for compromise Ask “What if:” • Possession was earlier? • We finance through seller’s bank to save penalties? • We exclude certain parts?
- 30. RE/MAX Mumbai Gujarat Maharashtra Negotiation tactics • Tactic: You are a great guy, but I need you to cut the commission. • Tactic: There is a promise of future business - reduce the commission on this one as I have got more business coming your way. • Tactic: They tell you that you are competing with other Sales Associates. • Tactic: They give you a deadline but you need more time. • Tactic: Emotion. The first meeting is very warm and responsive. When you come with the offer they become unpleasant. This is designed to make you emotionally unbalanced and get you emotionally involved. • Tactic: They start to sign and then stop to see if they can get one more concession. • Tactic: They use the begging approach. • Tactic: They nibble away at you, asking for one concession after another.
- 31. RE/MAX Mumbai Gujarat Maharashtra Thank You !!!