If your market is anything like ours in Las Vegas (20,000+ available resales, 9-10 month supply, prices flat to slightly declining) you know it can be tough to be a listing agent. Sellers may get frustrated by the lack of activity (especially relative to the boom of 2003-4), and a simple 'market update' call or visit can quickly turn into a firestorm. "Why isn't my home sold? How come you didn't do an open house last weekend? You've never shown my house! All of you agents are the same! I could do better on my own!"
When this happens, understand that 99% of sellers are only venting - don't take it personally. Instead use this as an opportunity to review your current marketing and pricing strategy with the seller and see if adjustments should be made. Make an appointment to meet with them face to face, and align yourself with the seller so it's you and them against the market.
"Mr. and Mrs. Seller, I understand your frustration with this market. People definitely know your home is for sale. (Go through showing activity, agent feedback, web stats, etc). But what's happening is the market is rejecting your home at its current price. Now as beautiful as your home is, I'd love to sell it for a million dollars ... but that's not what the market is telling us."
Next, review their motivation for selling as well as their time line. Is a new home almost ready and they may be caught making two house payments? Do they want to move before a change of seasons? Does there new job start in two months? Are they facing possible foreclosure? Restating and clarifying their motivation relative to today's market opens the door for changes in marketing and pricing.
"Mr. and Mrs. Seller, I know when we originally listed your home for sale that you wanted to net $140,000. Let me ask you a question: If we weren't sitting here at your kitchen table, but were down at the title company, the inspections were finished, the house appraised, the moving van was packed and ready to go, and we handed you a check for $120,000 ... is that something you would eeeeeeven consider?"
What's important is that you have an open and honest dialogue with your sellers. Don't take it personally, and don't get emotionally involved. Sellers are relying on you to be professional, level headed and business-like. Develop a game plan moving forward, with you and the seller as a unified team against the market. Understand that you can control the marketing, but you cannot control the market. It is what it is.
John, I do CMA's every week from their subdivision to the entire city. They need to understand what they are up against!
Great Post! :clapping:
Meeting face-to-face and using language to let them know you're on the same team...excellent post!
It's important to bring sellers into reality. So many have gotten carried away the with unbelievable values in the past. Today is today and tomorrow it could be worse. Price for the future and not for the past. Don't look back...
kk
John I like your post. I will have to borrow your quote- it is what it is! This was so very similar to the current market conditions here @ NC coast.
It always boils down to seller motivation. .
Laura - I don't think it should trickle down to the VA. The agent needs to take ownership of the listing and have systems and checklists in place to insure that all of those things have been done. Better yet, you could add value to your VA/Client relationships by helping them implement those systems.
Kaushik - It's all about educating the sellers so they can make an informed decision.
Renee - That's great follow-up! I'm sure your clients appreciate your attention to detail and consistent communication.
Joey - Face to face is key. People are usually much calmer and more receptive in person, and you can get any necessary signatures right away.
Kristal - "Price for the future" is great advice. The last thing we want to do is chase the price in a declining market.
Dena - Our median price here is about 300K. Many homeowners who purchased new from '98-'03 have seen pretty big gains in appreciation. But I just used those numbers for illustration.
Carole - My team will tell you I've had the occasional frustrated outburst, but now "it is what it is, it is what it is ...." Just keep focusing on your client's motivation.
Bryant - You're right; we seem to be saying this more and more often. And when it comes from someone with your level of experience, sellers would be wise to listen. An honest, client-first perspective is invaluable.
Michele - I got the phrase from our Team Leader, so borrow away! And remember to emphasize that you and the seller are on the same team - against the market.
Jennifer - Over-priced sellers need to realize that if they keep their current price they will net zero, because it simply won't sell! Face to face adds a few more dimensions to your message, and hopefully you can get it priced right.
Thanks for the feedback and comments everyone!
Today our buyer didn't show and we couldn't reach her on her cell. We left several messages on two phones and waited an hour. End result - don't jump to conclusions until we actually talk to her.
Clear communication reduces wear and tear on the psyche. I think I also read somewhere that patience is a virtue.
John,
I notice you are telling your clients "that the market is rejecting your home". My question would be in the Las Vegas market this was caused in part due to investors flooding the market, making fast profits and thus driving the false appreciation level of houses upwards many times what they normally should have been.
When explaining to your clients what is happening in the market would this enter into your conversation with them?
Harper Team - Hope it works out with your buyer. Good reminder not to assume until you've heard their side.
Tony - I agree 100% with being proactive in areas that you can control.
William - Timely info communicated clearly is one of the keys to great client service.
Jeff and Melissa - Be frequent and persistent in your message and eventually even the toughest seller will hear it.
Caryn - Your client will appreciate your honesty and candor. Remember you're both on the same team. Good luck!
Betsy - Good question. Investors definitely contributed to the high appreciation we had in 2003 and 2004. Since then our prices have leveled off with only a slight downward adjustment at some price levels. We can't change how we got here, we can only work in today's market. So our conversation focuses on what we can do today to move them closer to their goals.
MF - Sounds like your market is challenging like ours. We're seeing a lot more sales where sellers are breaking even or coming to the table, as well as short sales. It's a big shift from "If you were netting $120,000..." to "If you only had to come to the table with $10,000..."
I enjoyed the post and have to agree 100 percent -- usually the sellers are 6 months behind and we are starting to see it in Delaware. They are reducing the prices and getting down to the level that we are hoping for.
And I just had this conversation with a listing over the weekend - and thankfully we'd done the ground work before hand so she trusts me and we were in agreement that it was the price that needed adjustment.
John,
Great post. Research and data are our best friends in this situation. We must know our markets and know where they may be going. Thanks
Brian - I'm lucky to have an amazing team leader with a whole career's worth of sound bites just like that one.
Toby - How you 'set the table' in the beginning determines how receptive sellers will be in the future. You did a great job!
Jim & Maria - You can never have enough data in a market like this.
Thanks for the comments!
John
Congrats on the Carnival.
Coincidentally, at our KW team meeting this morning we were watching a video of team Brenkus on lead conversion and systems. Go team, GO!