Ask For Price Feedback
It could be argued that in a booming market most listings sell, but markets change and so it is better to not let your coaching skills become rusty. Coaching, not conditioning Many in our industry indulge in the disgusting practice of conditioning. I do not condone this practice. Conditioning is best described as giving sellers good news during the listing presentation, statements such as, “You should get that price. Let’s put it to auction and see what the market has to say“. Happy news, can-do spirit, nothing negative. But then, after the property is listed, it’s nothing but negatives. “The market response has been less than encouraging…” followed by low price feedback, perhaps even a dummy offer. The euphemistic term is “Managing the sellers’ expectations“. The truth as a sales tool
You don’t have to treat people this way in order to succeed. Sadly, many do not realise that the truth is a terrific sales tool. And that telling the truth does wonders for their integrity.
- At the listing presentation, tell the truth and give a realistic estimate of the likely selling price. Yes, it takes skill to tell the truth and still win the listing, but there are many skilled and honest salespeople out there who know how to do it. It can be done. It is being done… daily.
- Whether you show properties by individual inspection or by open inspections, ask every buyer for their opinion of what the property is worth. Elicit honest feedback from genuine buyers and pass that honest feedback on to your sellers.
This helps you to qualify the buyer too. Is their feedback realistic for this type of property in this current market? Buyers’ answers to the question ‘what do you think this property is worth?’ tell you whether or not they know the market. Also, if they quote you a price and later offer a lower figure you now know they may pay more.
Knowledge is power
You would never expect a buyer to buy in their first couple of weeks looking at properties. Nobody wants to make the wrong decision and buyers need knowledge of the market before they begin making sensible and realistic offers. Knowledge is power, and once buyers have the knowledge they make offers. Buyer knowledge develops with good information and experience, received over time. Likewise, an agent that commences in real estate won’t be capable of quoting accurate prices to sellers because they don’t know the market. As they develop more market knowledge, they become more accurate in their pricing. Agent knowledge develops with good information, received over time. Seller knowledge develops with good information, received over time too. But sellers receive their information differently. Buyers and agents receive their information, gain their knowledge, by being active in the marketplace. Sellers, however, must receive their information via buyer feedback from their listing agent. Sellers do not need conditioning: THEY NEED COACHING. Give your sellers time to understand the market by feeding them good information with plenty of honest and regular feedback. Every time you conduct an inspection with a buyer ask, “Based on your knowledge of the market, what do you think this property is worth?“ Question how they arrived at this price. It will help you qualify the buyer better and it will be invaluable information for the owners of the property. After sufficient regular and honest feedback, your sellers will gradually come to understand the market and at what price their property is most likely to sell. Once they reach that understanding they will reduce to a price necessary to make a sale happen. Stay away from conditioning and instead show empathy and understanding. Help, guide, and coach. Ask for price feedback from buyers and pass it on to the sellers. You will win friends and make sales.