|
 
December 2008
Index of all
messages
from the Association President
Does your seller want to stay or sell?
By Barb Cline, AAR President
As listing agents, the biggest challenge we face is helping our sellers price their homes correctly and competitively in the marketplace.
So says David Knox, a presenter last month at the NAR Conference and Expo in Orlando. I had the opportunity to sit in on Knox’s presentation, and I thought that much of his information was particularly timely. I’d like to share some of it with you now.
There are only two reasons that homes are overpriced: lack of education and lack of motivation. You may think it must be more than that, that it must be more complicated, but according to Knox, it is quite simple.
Make it plain
In order to educate our clients, it is crucial that we explain the difference between a buyer’s market and a seller’s market and that we explain the unbalanced nature of both types of markets and the law of supply and demand.
In a buyer’s market, there are more homes than there are buyers and conversely, in a seller’s market, there are fewer homes than there are buyers. When the market is as unbalanced as it is today, there is much more competition. This means that the seller’s home must be more special than the one for sale down the street or around the corner. Unless your listing has some spectacular trait, this usually comes down to price.
Look for the motivation
In our current market, Knox says, it is extremely important as a listing agent to find out why the seller wants to sell his home. A few years ago, it did not matter what the seller’s incentive was. We took a listing, put the sign in the yard, put the home in our MLS and presto! We got offers! Today, the climate, as you know, is much different.
In order to price the home competitively, it is important for you to understand why your client wants to sell his home. According to Knox, you must ask these questions during your listing presentation:
1. Have you decided definitely to move?
2. Why?
3. What would happen if your home did not sell? (It is OK to NOT sell?)
By knowing the seller’s motivation, you can help your seller determine whether he is truly motivated to sell or whether he really may prefer to stay. Having this knowledge can help you help your seller to more effectively price the home and hence, get it sold in today’s market. Reach the right conclusion Often, the seller wants more for the home than the market will bear. One of the reasons we frequently hear is, “We need to get more out of the house.” Knox’s response would be something like, “I understand your need for more money. I got from our previous conversations that you already accepted the job in Chicago (or that you really want to be close to your grandkids or you need to leave the high altitude for health reasons or what ever the client’s motivation is).” Then be quiet and let the client come to the correct conclusion.
By knowing what the true motivation for the sale is, we can help our clients determine whether they want to stay or sell. |
